Inventory Pegging in PeopleSoft Financials Supply Chain

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Smart ERP Solutions presentation with Berlin Packaging covering use of Inventory Pegging features in PeopleSoft Financials Supply Chain. Inventory Pegging has been a feature in PeopleSoft Enterprise since version 8.9, but it is not often used or fully understood. Pegging provides the ability to link demand to incoming supply in order to prevent the incoming supply from being reserved, or allocated to another demand transaction. Covered is is an overview of the capabilities of Pegging, the setup that is required to use it properly, and a case study in Pegging with lessons learned.

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Inventory Pegging in PeopleSoft Financials Supply Chain

  1. 1. QuestDirect.org Inventory Pegging Mary Gallitano Application Development Manager – Berlin Packaging Mary.Gallitano@Berlinpackaging.com Steve Canter Director, Global Service Delivery – Smart ERP Solutions Steve.C@SmartERP.com
  2. 2. QuestDirect.org 2 Agenda • Pegging Definitions • Notifications • Using Pegging Workbench • Viewing Pegging Information • Berlin Packaging Case Study
  3. 3. QuestDirect.org 3 What is Pegging? • Pegging links demand to incoming supply. • Demand can be either of the following: • Sales Order • Interunit Transfer going out • Supply can be any of the following: • Purchase Order • Production ID • Interunit Transfer coming in • A Peg prevents the incoming supply from being reserved to another Demand Line
  4. 4. QuestDirect.org 4 Hard Pegging • A hard peg is created when a the Demand creates a purchase order or PID to fulfill it. • Direct Ship and Configured Sales Orders are automatically Hard Pegged. • Hard Pegs can also be created through Alternative Sources of Supply in OM • When hard pegged demand is changed or canceled, the supply transaction is changed (when allowed).
  5. 5. QuestDirect.org 5 Changes in Demand with Hard Pegs • DS SO change allowed if PO is not Dispatched or if Due Date has not passed (configuration) • Configured SO change allowed if there is no Production Pick Plan, material has not been issued, and there is no Subcontract PO • Changes in Quantity, Date, and Status (cancelation) are automatically made to the supply. • If the transaction is past the point where the change in supply is allowed, then the change is not allowed in the demand. • Changes to supply are not automatically made in the demand.
  6. 6. QuestDirect.org 6 Soft Pegging • A Soft Peg links an existing Demand Line to a quantity of existing Supply. • Example: A Sales Order for 100 units is entered. There is already an open PO with 2,000 units due into the warehouse. The SO can be soft-pegged to the PO to consume 100 pieces of the total that are coming in. • Changes in soft-pegged demand have no impact on the supply. • Soft Pegging is done through Pegging Workbench.
  7. 7. QuestDirect.org 7 Communicating Changes • Changes to Pegged Supply or Demand automatically generate notifications to the appropriate person. • OM messages sent to the Order Owner • PO messages sent to the Buyer • PID and IBU messages sent to the designated person(s) for the Business Unit • Notifications are sent to the person’s Worklist, available on the Home Page, or to email.
  8. 8. QuestDirect.org 8 Viewing Notifications
  9. 9. QuestDirect.org 9 Notification Detail
  10. 10. QuestDirect.org 1 Using Pegging Workbench
  11. 11. QuestDirect.org 1 Peg SO to PO
  12. 12. QuestDirect.org 1 See Results
  13. 13. QuestDirect.org 1 View Pegging Information • From the Sales Order Line, you can see the PO or PID that is Pegged • From the PO Schedule, you can see the Sales Order that is Pegged. • From PID Maintenance, you can see the Sales Order that is Pegged. • From the Stock Request Inquiry, you can see the Pegging Information. • From the Pegging Inquiry screens, you can also directly transfer to the other transaction.
  14. 14. QuestDirect.org 1 Pegging Inquiry in OM
  15. 15. QuestDirect.org 1 Pegging Inquiry in PID
  16. 16. QuestDirect.org 1 Pegging Inquiry in PO
  17. 17. QuestDirect.org A Look Under the Covers 1
  18. 18. QuestDirect.org 1 Pegging XLATS
  19. 19. QuestDirect.org 1 Viewing Peg Status SELECT PEG_STATUS, BUSINESS_UNIT, ORDER_NO, ORDER_INT_LINE_NO FROM PS_IN_DEMAND WHERE BUSINESS_UNIT = '00049‘ AND ORDER_NO = '0430044923' 10 00049 0430044923 1
  20. 20. QuestDirect.org 2 Viewing Peg Status SELECT PEG_STATUS, BUSINESS_UNIT, ORDER_NO, ORDER_INT_LINE_NO FROM PS_IN_DEMAND WHERE BUSINESS_UNIT = '00049‘ AND ORDER_NO = '0430042421' 40 00049 0430042421 1
  21. 21. QuestDirect.org 2 Demand Hash Table SELECT HASH_KEY, BUSINESS_UNIT, DEMAND_SOURCE, SOURCE_BUS_UNIT, ORDER_NO, ORDER_INT_LINE_NO, SCHED_LINE_NBR, INV_ITEM_ID, DEMAND_LINE_NO FROM PS_IN_DEMAND_HASH WHERE ORDER_NO = '0430044923' 85ReFbrcWlcr2yrB8em1VOzTOic= 00049 OM 43 0430044923 1 1 GLC-01056 2
  22. 22. QuestDirect.org 2 Supply Hash Tables
  23. 23. QuestDirect.org 2 Putting it Together
  24. 24. QuestDirect.org Berlin Packaging Case Study in Pegging
  25. 25. QuestDirect.org Berlin Packaging • Hybrid Packaging Supplier of Containers and Closures • Privately held company, headquartered in Chicago • Over 30 locations nationwide • PeopleSoft Financials and SCM Version 9.1 • PeopleTools 8.51 • Over 500 Active users of PeopleSoft • Annual sales in excess of $700,000,000 • Live on PeopleSoft since 2001 • 9.1 upgrade completed in May, 2012
  26. 26. QuestDirect.org Berlin Products
  27. 27. QuestDirect.org • Drop Ship Purchase Orders • Product Configurator • Pegging Workbench (will eventually replace Product Configurator completely) Pegging At Berlin
  28. 28. QuestDirect.org Drop Ship Process • All Drop Ship order lines are automatically placed on a Drop Ship line Hold • Drop Ship Lines are manually removed from Drop Ship Hold when the Purchase Order is Vouched and Matched • In 8.8 – the PO Information was stored in ORD_SCHEDULE and the Order Information was stored in PO_LINE_SHIP • This relationship went away with the implementation of Pegging • We created a custom view – BP_ORD_SCHED_VW – which uses the hash tables to have an easy way to see the relationship between the order and Purchase Order.
  29. 29. QuestDirect.org Drop Ship Challenges • User cancels Hard Pegged Drop Ship Purchase Order, and then the Sales Order can’t be cancelled. • NOTE – we train the users that the Demand should be cancelled before the supply and they receive an error message, but that doesn’t always stop the problem from occurring. • Resolution – SQL script to update the pegging status
  30. 30. QuestDirect.org 30 --replace C.ORDER_NO with B.PO_ID and get the same result. -- Peg Status 10 = Open, 20 = Completed, 30 = Cancelled, 40 = Not Pegged SELECT B.BUSINESS_UNIT, B.PO_ID, B.LINE_NBR, B.SCHED_NBR, C.BUSINESS_UNIT, C.ORDER_NO, C.ORDER_INT_LINE_NO, C.SCHED_LINE_NBR, A.PEG_STATUS, A.SUPPLY_HASH, A.DEMAND_HASH,A.HARD_PEG FROM PS_IN_PEGGING A, PS_PO_HASH B, PS_IN_DEMAND_HASH C WHERE C.ORDER_NO in ('xxxxxxxxx' ) --WHERE B.PO_ID = 'xxxxxxxxx' AND B.HASH_KEY = A.SUPPLY_HASH AND C.HASH_KEY = A.DEMAND_HASH AND A.SUP_ORDER_TYPE = '010' AND A.PEG_STATUS = 10 SQL for Drop Ships
  31. 31. QuestDirect.org Product Configurator • Berlin has customized Order Management to automatically run the Create Production Request Process when a configured item is ordered. • The Subcontract PO Process is scheduled to run every 10 minutes • Our items are not truly “configured” as much as they are “build on demand” • We have a combination of Subcontract PIDs and In- house Production
  32. 32. QuestDirect.org • Supply is Hard Pegged for Configured items. • Cannot be changed once the Subcontract PO is created. • This resulted in effectively preventing the field from making changes to configured sales order lines outside of a very tight window. • Product Configurator will be going away with future releases Configurator Challenges
  33. 33. QuestDirect.org 33 • We are gradually eliminating the use of Configured items. • Sales order is created • PID is then created • Pegging Workbench is used to tie the 2 together • It then becomes much easier to make changes since the PID is now Soft Pegged to the Sales Order. Configurator
  34. 34. QuestDirect.org 34 • Sales Order Linked to a PID could be cancelled without any warning • Quantity decrease on a Sales Order caused the peg to be changed from Hard to Soft • Subcontract Streamline did not work with Configured PID • Changes made to configured Sales Orders had unexpected results • These are all bugs that have been resolved with assistance from Oracle Support Other Pegging Issues
  35. 35. QuestDirect.org • We continue to utilize Pegging with Drop Ship sales orders with very few problems. • We have eliminated the majority of our configured subcontracted items and utilize pegging workbench to manage the relationships. • Our Production Team has gotten more comfortable with the pros and cons of utilizing Pegging and the workarounds when things go awry. • Reviewing Use of Alternate Sources of Supply Where are we today?
  36. 36. QuestDirect.org 36 • Pegging as delivered in 9.1 has a lot of bugs • It does take some time for the business to understand how Pegging works. • BUT – it can add a great deal of value to the business once you get past the training and the initial bugs. Conclusion
  37. 37. QuestDirect.org APRIL 7-11, 2014 Sands Expo and Convention Center Las Vegas, Nevada QuestDirect.org/COLLABORATE COLLABORATE 14- Quest Forum is THE source for PeopleSoft roadmaps & news. It matters where you register! All PeopleSoft education and events run through Quest
  38. 38. QuestDirect.org 3 Any Questions?

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