Infor LN Cost Peg Transfer: How It Works and How to Reconcile It
infor ln cost peg transfer
Also searched as
- infor ln peg cost transfer project
- infor ln pegged cost reconciliation
- infor ln transfer cost to project actuals
Short answer
In Infor LN, pegging links supply and demand so cost incurred on a supply order (production, purchase, warehouse) can be charged to the project, element or activity it was created for. A cost peg transfer moves that pegged cost into project actuals, and it only works when the pegging, the project structure and the cost-component setup are correct before the run.
Applies to: Infor LN 10.x with Project and Cost Accounting; session names differ between feature packs, so search by description
How to run and verify a cost peg transfer
- 1Confirm the project is set up with the right structure: project, elements and activities, and that the pegging to the project is active for the items involved. Cost can only follow a peg that exists.
- 2Check the item and order parameters that decide whether orders are project-pegged: the project-related item data and the order type or planning settings for the supply orders.
- 3Verify that cost components and cost objects are defined so the transferred cost lands on the intended project cost lines rather than a default.
- 4Release or complete the supply orders whose cost you want to move. Open orders carry cost, but transfer sessions normally act on finalized or posted transactions.
- 5Run the cost peg or cost transfer session for the project range and period, first as a selection or simulation run if your version offers one, and review the log.
- 6Compare the transferred amount to the supply order actuals for one sample order, line by line, before running for all projects.
- 7Reconcile against the general ledger: project actuals, WIP and inventory balances should move by the same amount in the same period. Investigate differences by order, not by total.
- 8Archive the log and note the run parameters so the next period run is repeatable.
What pegging does to cost
Pegging is the link between a demand (such as a project activity requirement or a sales order line) and the supply that satisfies it. When a manufacturing or purchase order is pegged to a project, its cost is attributable to that project. Cost peg transfer is the accounting expression of that link: the cost leaves the supply order and becomes project cost.
That is why the pegging data has to be right at the time the order is created. If the order was created without the project peg and re-pegged later, cost recorded earlier does not automatically follow, and you end up with project cost that is understated while the same cost sits on the general stock account.
Prerequisites that cause most failed transfers
Three setup areas cause most failures: the project structure (missing element or activity that the peg points to), the integration mapping to financials (the posting account for project cost does not exist for the cost component), and the status of the source transactions (not yet finalized, or posted to a closed period).
A fourth is the currency and cost-price method. If supply orders are valued at standard cost and the project is valued at actual, the transfer carries a variance that has to land somewhere. Decide up front which variance accounts apply, otherwise the run posts but the ledger will not tie to the project report.
Reconciliation issues and how to chase them
Reconcile at the smallest unit possible: one supply order, its transactions, the pegged project line and the ledger entries created by the transfer. A total difference between the project report and the ledger is a sum of small differences, and they usually fall into three groups: orders not yet transferred, orders transferred in a different period, and orders re-pegged after cost was booked.
Keep a standing query that lists pegged supply orders with cost greater than zero and no corresponding project actual. Running it before period close turns a month-end surprise into a worklist. The same query after the transfer should return nothing for the closed period.
Reconciliation worklist (pseudo-SQL, adapt table names to your LN schema): SELECT order_no, project, element, activity, order_cost, transferred_cost FROM pegged_supply_orders WHERE order_cost <> transferred_cost AND period = :closing_period;
Try it here, free
Infor LN Project Earned Value Calculator
Compute earned value, CPI, SPI and forecast cost at completion from budget, planned and actual percent complete and actual cost.
Common pitfalls
- !Running the transfer before the supply orders are finalized, which leaves cost behind that appears next period.
- !Re-pegging an order after cost has been booked and expecting history to move.
- !Missing financial integration mapping for a cost component, so the posting falls to a default or fails.
- !Mixing standard-cost supply orders with actual-cost projects with no variance account decision.
- !Reconciling on totals rather than order by order.
How an ERP-grounded AI assistant handles this
The hard part is the order-by-order comparison. An assistant grounded in LN data can list pegged supply orders whose cost differs from transferred project cost and explain which of the three usual causes applies to each. ERPray does this read-only and shows the query; the corrections remain a controller's decision.
Frequently asked questions
What is a cost peg transfer in Infor LN?
It is the step that moves cost from a supply order, such as a production or purchase order pegged to a project, onto the project actuals it belongs to. It follows the pegging link, so it only works for orders that were pegged to the project.
Why is my project cost lower than the supply order cost?
Common reasons are orders not yet finalized, orders created without the project peg, a transfer posted to a different period, or missing cost component mapping. Compare one order at a time to find which applies.
Can I rerun the transfer for the same period?
That depends on your session and the status of the posted entries. Check the log of the earlier run and the financial status before rerunning, and test in a non-production company first if you are unsure.
Do I need Project Control for cost pegging?
Project cost pegging relies on the project structure. Whether you use the full project control module or a lighter project setup depends on your license and version, so confirm with your Infor partner.
Related
How to set up and run a project in Infor LN PCS
Infor LN's Project Control System (PCS) manages engineer-to-order and project-based work as a structured hierarchy: a project header, a work breakdown structure (WBS) of activities, a budget or estimate against that structure, and actual cost and progress booked back against the same elements. Getting the WBS and budget structure right before any transaction posts is what makes project cost reporting usable later.
How-toHow to calculate item cost prices in Infor LN
Infor LN calculates an item's cost price by rolling up material, labor, machine, subcontract and overhead costs defined against cost components, using the item's bill of material and routing as the calculation base for manufactured items and purchase price for bought items. The calculation can run in simulation mode to preview the result or in update mode to actually change the item's standard cost, which then drives inventory valuation and variance reporting going forward.
How-toHow to close a financial period in Infor LN
Closing a period in Infor LN is not a single click; it requires clearing every module's outstanding integration transactions into Financials first, reconciling each subledger (AR, AP, inventory, WIP) to the general ledger, and only then closing the period through Periods and Fiscal Years, which blocks further posting to it. Skipping the reconciliation step and closing early is what causes stuck or orphaned transactions that have to be reopened and reworked later.
Error fixInfor LN Sales Invoice Not Transferred to Financials
When a sales invoice exists in LN Invoicing but not in accounts receivable or the general ledger, the posting stopped in integration transactions. The usual causes are a missing integration mapping scheme, a closed or blocked financial period, an invalid ledger account or dimension, or an unprocessed integration transaction that needs to be reprocessed after the data is corrected.
Error fixInfor LN bshell Process Stuck at 100% CPU: How to Diagnose and Fix It
A bshell process pinned at 100% CPU on the Infor LN application server almost always means one session is stuck in a 4GL loop, scanning an unindexed table, or waiting on a database lock. End the session from the Sessions Monitor first, then kill the OS process only if that fails, and check for a blocking database transaction before assuming it is a bug.
Error fixInfor LN Not Authorized to Run This Session: How to Fix It
Infor LN refuses to open a session with a not authorized message when the logged-in user's assigned role does not include that session, or when the session is blocked for the company they are logged into. Grant the session through Common > Authorization Management > Roles, or check the user's role and company context, and the session opens on retry. In most cases this is a permissions configuration issue, not a bug.
AI for ERPAI for Infor LN: Sessions, BODs, and Engineer-to-Order Work
Add grounded AI to Infor LN 10.x or CloudSuite: natural-language answers over sessions and BODs, agents for project and engineer-to-order work, on-prem options.
AI for ERPAI for Infor LN in Aerospace and Defense Manufacturing
AI grounded on Infor LN project, contract, and configuration management data for aerospace and defense manufacturers, with on-prem deployment for ITAR.
Stuck on Infor LN?
Talk to engineers who work inside Infor LN every week, and who build private AI that answers these questions from your own ERP data.
Keep exploring
Free tools
- Infor LN Project Earned Value CalculatorCompute earned value, CPI, SPI and forecast cost at completion from budget, planned and actual percent complete and actual cost.
- Infor LN Cutover Runbook TemplateFill in your project details and get a structured go-live cutover runbook with timeline, data loads, reconciliation and rollback decision points.
ERP fixes and how-tos
- Infor LN Planned Cost and Pegged Transfer ExplainedPlanned cost, pegged supply and cost transfer between orders in Infor LN explained: how costs follow demand, where they can go wrong and how to verify the result.
- Infor LN Master Planning: How It Works and a Setup and Run ChecklistHow master planning works in Infor LN: planned orders, pegging, planning horizons and a practical setup and run checklist for planners and consultants.
- How to set up and run a project in Infor LN PCSSet up a project in Infor LN PCS: define the project and WBS, build the budget or estimate, assign resources, and book actual cost and progress.
Guides
- Infor LN Cost Accounting and Cost Price ConfigurationConfigure Infor LN cost accounting with cost price calculation, cost components, variance analysis, and standard costing setup for manufacturing cost control.
- AI-Powered Project Manufacturing for Infor LNOptimize Infor LN project manufacturing with AI agents. Automated WBS management, earned value analysis, and project cost control for complex manufacturers.
- Infor LN Financial Integration GuideIntegrate Infor LN financials with external systems. General ledger, accounts payable, accounts receivable, and financial consolidation integration patterns.
AI on your ERP
- AI for Infor LN in Aerospace and Defense ManufacturingAI grounded on Infor LN project, contract, and configuration management data for aerospace and defense manufacturers, with on-prem deployment for ITAR.
- AI for Infor LN Project Control: Budget, Cost and Forecast Questions Answered From Your PCS DataAI for Infor LN Project Control: budget versus actual, forecast to complete and change tracking in plain language. Private, read-only by default.