What is Grouping, Pegging, Distribution in SAP IS-AD-GPD - Pegging, Grouping, and Distribution?

SAP Term: Grouping, Pegging, Distribution

• Component: IS-AD-GPD

• Component Name: Pegging, Grouping, and Distribution

• Description: Function that you can use to group requirements from several WBS elements or projects intp one or more grouping WBS elements grouping. You can, at the same time, determine the pegged requirements using requiremetns planning data and information from a current quantity structure pegging. Based on the assignments determined, the different cost elements that ensue can be distributed to the original projects distribution. Besides the use of larger lot sizes, GPD allows the use of resource-/ cost-related billing and project-specific cost control. The function is possible with both valuated and non-valuated stock.

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• Key Concepts: 
  Grouping, Pegging, and Distribution (GPD) is a component of SAP’s Information System (IS) that allows users to group and distribute materials and services in a cost-effective manner. GPD enables users to create pegging relationships between materials and services, which allows them to track the cost of each item in the group. It also allows users to distribute costs across multiple cost centers or departments. 
  
  How to use it: 
  To use GPD, users must first create a grouping structure. This structure defines the relationships between materials and services, as well as the cost centers or departments that will be associated with each item. Once the structure is created, users can then assign costs to each item in the group. Finally, users can use GPD to distribute costs across multiple cost centers or departments. 
  
  Tips & Tricks: 
  When creating a grouping structure, it is important to consider how the costs will be distributed across multiple cost centers or departments. This will help ensure that costs are allocated in an efficient and effective manner. Additionally, it is important to keep track of any changes made to the grouping structure, as this can affect the accuracy of the cost distribution. 
  
  Related Information: 
  For more information on GPD, please refer to SAP’s official documentation on Grouping, Pegging, and Distribution (GPD). Additionally, there are several online tutorials available that provide step-by-step instructions on how to use GPD.