Infor LN Planned Cost and Pegged Transfer Explained
infor ln planned cost pegged transfer
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Short answer
In Infor LN, a pegged order is a supply order linked to a specific demand such as a project or sales order. Planned cost is the expected cost of that supply, and when the supply completes its actual cost is passed to the demand it is pegged to. If the peg is broken or the cost is stated differently on each side, the demand order shows wrong cost and margin.
Applies to: Infor LN 10.x costing with pegged or project-based supply. This page explains the mechanism; confirm session names and parameters against your version's documentation.
Check that costs transfer correctly along a peg
- 1Identify the demand (for example the project or sales order line) and the supply order that should be pegged to it.
- 2Confirm the peg exists on both orders, by looking at the pegging reference on the supply and the demand.
- 3Compare planned cost on the supply order with what the demand shows as expected cost. They should agree on cost components and currency.
- 4Complete and finalise the supply order, then check that actual cost posted to the supply order is the amount transferred.
- 5Look at the demand order's cost view and confirm the transferred amount appears once, in the right cost component.
- 6If the amounts differ, trace the supply order's cost components and rounding, then any revaluation or variance posted after transfer.
- 7Record the cause and correct the setup so the next order behaves the same way.
What pegging means for cost
Normal planned supply is anonymous: stock covers demand, and cost is carried by the item's cost price. Pegged supply is the opposite, because the supply exists only for one demand. Cost therefore has a direct destination, and LN can pass the supply order's cost to the demand it serves.
That is why pegging suits engineer-to-order, project and contract manufacturing, where each job should carry its own cost rather than an averaged item cost.
Planned versus actual
Planned cost is the estimate when the order is created, built from the bill of material, routing and rates. Actual cost accumulates as materials issue and labour is reported. At completion the actual is what moves along the peg, and the difference between planned and actual is the variance you analyse.
Keep the two views separate in reporting. Mixing planned and actual in one total hides overruns until the period close.
Where transfers go wrong
Common causes of wrong results are a peg removed by replanning, a supply order re-pegged to another demand, cost elements set up differently on supply and demand sides, currency differences and costs posted after the transfer, such as late invoices or revaluation.
A good control is a periodic list of completed pegged supply orders whose transferred cost differs from their final actual cost. Even a small list tells you quickly whether the setup is sound.
Control query idea (pseudo) For each completed pegged supply order: final actual cost - cost transferred to demand = residual List where abs(residual) > tolerance
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
- !Replanning that silently breaks pegs between supply and demand.
- !Different cost element mapping on supply and demand, so transferred cost lands in the wrong bucket.
- !Treating planned cost as final in margin reports before orders complete.
- !Late-posted costs after the transfer that never reach the demand.
- !Changing costing parameters mid-year without a reconciliation.
How an ERP-grounded AI assistant handles this
Finding which pegged orders diverge is a cross-table question. A private assistant on your LN database can list completed pegged orders where transferred and final actual cost disagree, with the query shown, read-only and inside your network. Finance still decides the correction.
Frequently asked questions
What is a pegged order in Infor LN?
It is a supply order, such as a production or purchase order, created for one specific demand like a project or sales order. The link is the peg, and it lets LN track availability and cost for that demand specifically.
What is planned cost in Infor LN?
It is the expected cost of an order, calculated from its bill of material, routing and rates before work happens. Actual cost accumulates during execution, and the difference between the two is the variance.
Why does my demand order show the wrong cost?
Check that the peg is intact, that cost elements match between supply and demand, and that no costs were posted after the transfer. Replanning and late invoices are frequent causes.
Should I use pegging for all items?
No. Pegging adds control and rigidity, which pays off for project and make-to-order work. For standard stocked items, anonymous supply and item cost prices are simpler and easier to maintain.
Related
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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.
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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.
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