Use of Pegging requirements

Question

Hi all,
Please explain the use of without pegging button in MD04
(When we put cursor on production order and press the pegged requirements button, we can see the pegged requirements buttons for some materials). It doesn't come for all materials.
Please explain its functionality.
Regards,
Ravindra

Answer 1

Pegging
Use
If you implement the component Grouping, Pegging, Distribution for project-based production procedures, you can use pegging to determine the proportional assignments of replenishment elements (production orders, purchase orders) for a grouping WBS element to the objects causing the requirements (reservations, planned independent requirements). These assignments form the basis for the cost distribution that follows and that distributes the costs for the procurement elements of grouped requirements to the original projects.
Pegging can be performed in two different ways:
When you make assignments according to MRP Logic, the assignment of replenishment elements to pegged requirements takes place according to the current requirements planning situation. Previous assignments are not taken into account.
The second option is the use of the Fixing Rule: during the assignment process, the attempt is made to copy as many assignments for a replenishment element as possible form the previous pegged requirements run. This means that cost transfer postings at a later date can be avoided.
Special rules must be applied for the assignment of exceptions (surplus, scrap and stock differences).
The transactions for pegging and cost distribution are not in the SAP menu. The function can only be released after agreement with SAP. Due to the complexity of the grouping, pegging and distribution (GPD) process, you should discuss your relevant business processes with a consultant from the SAP Industry Unit Aerospace and Defense.
Prerequisites
To execute pegging, the following prerequisites must be met:
Grouped material requirements under one or several grouping WBS elements must exist for the WBS elements
You have assigned a distribution profile to your grouping WBS element in Customizing
You have assigned a logic for the execution of pegging on plant level in Customizing under Pegging: General Settings.
You have assigned rules for the assignment of exceptions in Customizing under Pegging: General Settings.
You have maintained the movement types that are allowed for pegging in Customizing.
You can find further information on the necessary Customizing activities in the SAP IMG under Logistics ® Project System ® Costs ® Automatic and Periodic Allocations ® Pegging and Distribution.
If you want to use a cost structure that deviates form the production structure, you have created break points.
You have created special WBS elements for the assignment of exceptions (scrap. surplus and stock differences) either on plant level or grouping WBS element level. You can find further information under Assigning Exceptions.
You have assigned grouping WBS elements of category 1 (valid for all materials) to a plant. You can find further information under Assigning Grouping WBS Elements to a Plant.
You have executed material requirements planning (MRP). You can find further information under  Starting a Multi-Level Single-Item Planning Run.
Features
Pegging contains the following functions:
Determination of the pegged requirements assignments
Determination of break points
Assignment of exceptions (scrap, surplus, stock differences)
Processing assignments
Transfer posting material to material
Reporting
The following functions are not supported in pegging:
cross-plant processes
use of serialized materials
use of manufacturer part numbers or supersession materials
assignment of requirements form sales orders to projects