What is pegging area in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: pegging area

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Combination of product, location, account assignment object and planning version. A requirements, stock or receipt element is in a specific pegging area. Only stock and receipt elements that lie within the same pegging area can be assigned to a requirements element. The stock and receipts of a pegging area can only therefore cover the requirements from the same pegging area. The pegging area is identical to the planning segment in SAP R/3, with the exception of the planning version. In SAP APO the term "planning segment" is often used as a synonym for "pegging area".

Smart SAP Assistant

• Key Concepts: 
  A pegging area is a feature of the Production Planning and Detailed Scheduling (PPS) component of SAP's Supply Chain Management (SCM) module. It is used to define the relationship between a production order and its components, such as materials, operations, and resources. The pegging area is used to determine the availability of components for a production order and to calculate the delivery date of the order. 
  
  How to use it: 
  The pegging area is used to define the relationship between a production order and its components. This is done by creating a pegging structure, which consists of a source document (such as a sales order or material requirement) and its related components (such as materials, operations, and resources). The pegging structure is then used to determine the availability of components for a production order and to calculate the delivery date of the order. 
  
  Tips & Tricks: 
  When creating a pegging structure, it is important to ensure that all components are correctly linked to their respective source documents. This will ensure that the availability of components is accurately calculated and that the delivery date of the production order is accurate. 
  
  Related Information: 
  For more information on pegging areas in SAP SCM-APO-PPS, please refer to SAP's official documentation on Production Planning and Detailed Scheduling.