Controlling Source Determination with Quota Arrangements

1. After entering the material and plant on the initial screen, specify, in the header overview, the date that the quota arrangement is valid until.

   The start date is always the current date or the follow-on date from the end of the previous quota arrangement.

2. Enter a quota arrangement item for each source of supply that you want to use in the quota arrangement.

   You must do the following:

   • Specify the procurement type – in-house production or external procurement – for each source.

   • Where appropriate, specify the special procurement type.

     You can use the following special procurement types in quota arrangement:

     • In-house production
     • Production in another plant
     • Consignment
     • Subcontracting
     • Stock transfer

   • Enter the vendor. If it is a stock transfer, specify the supplying plant.

   • Specify the quota that you want to assign to this source.

   • Specify further details if required for the individual quota arrangement items.

3. The system calculates the percentage distribution of the requirements on the basis of the quotas. The system updates the quota-allocated quantity following each assignment of requirements effected on the basis of the quota arrangement.

On the SAP Fiori launchpad, you can use the Manage Quota Arrangements app in the Source of Supply Management tile group.

To create a quota arrangement in the SAP GUI on the SAP Easy Access screen, choose Logistics → Materials Management → Purchasing → Master Data → Quota Arrangement → Maintain (MEQ1).

You include a new supplier in an already existing quota arrangement. The existing quota arrangement consists of two suppliers, who are each assigned 50% of the material requirements that arise. Each of these suppliers has a high quota-allocated quantity, because your company has already ordered a lot of material from them during the validity period of the quota arrangement.

The new supplier is to be assigned the same share of forthcoming requirements as the other two. However, according to the formula for calculating the quota rating, all new requirements would be allocated to the new supplier until its quota number exceeds that of one of the other two suppliers.

If purchase requisitions are to be allocated equally with immediate effect, as if the new supplier had been part of the quota arrangement from the beginning, you must enter a quota base quantity for the new supplier accordingly or have the system determine it.

In the GUI transaction MEQ1 the system provides the following procedures for calculating the quota base quantity:

• Individual calculation:

  This calculates the quota base quantity for the selected quota arrangement items. Select the items whose quota base quantity is to be recalculated and choose Edit → Base Quantities → Individual Calculation.

• Collective calculation:

  This calculates the quota base quantity for all quota arrangement items. Use this procedure if you want to set the quota rating to the same value for each source. Choose Edit → Base Quantities → Collective Calculation.

You create a purchase requisition for 100 pieces of a material for which the source determination process in the requisition is regulated on the basis of a quota arrangement.

The following table shows the situation of the quota arrangement at the time of source determination:

In accordance with the formula Quota rating = (Quota-allocated quantity + Quota base quantity)/Quota, the quota ratings for vendors A, B, and C are as follows:

This means that the source representing supplier B will be assigned to the next requisition item because this supplier has the lowest quota rating.

After the requisition is saved, the quota arrangement is as follows:

In accordance with the formula mentioned earlier, the quota ratings for suppliers A, B, and C are as follows:

In the GUI transaction MEQ1 you can simulate source determination using the quota arrangement. To do so, go to maintenance for quota arrangement and choose Extras → Simulation → Quota Arrangement or Extras → Simulation → Source of Supply. If you choose the first menu path, only the quota arrangement is checked. If you choose the second menu path, outline agreements, info records, and source lists are also included.