Introducing Quota Arrangements in SAP S/4HANA

Objective

After completing this lesson, you will be able to explain the necessity and functions of quota arrangements

Quota Arrangements

Similar to the source list, a quota arrangement facilitates the administration of supply sources at the plant level. If you would like to procure material from different sources within a certain time period, you can assign a quota to each source. The quota indicates which share of the requirements arising for the material over a certain period is to be procured from which source.

If a valid quota arrangement exists for a material, it is taken into account during source determination. A quota arrangement is agreed upon for a certain period of time, and a quota arrangement item is created for each source during that period. If a quota arrangement applies, this does not mean that the quantity of a single manually created purchase requisition is automatically apportioned among different sources. The entire requested quantity of a purchase requisition item is assigned fully to one source in accordance with the quota arrangement. You can only divide up a single requirement according to the quota in the planning run.

In the case of sources for which you have specified a quota in the current validity period, the system calculates which source is used next for a requirement. The system calculates this during the source determination process for a requested material. For each source of supply, the system calculates a quota rating as follows: Quota rating = (Quota-allocated quantity + Quota base quantity)/Quota.

The individual values are defined as follows:

  • Quota-allocated quantity: This is the total quantity of all requirements that have been assigned to a source since the start of the quota arrangement. The quota-allocated quantity is updated automatically. The update also takes place when you delete or change objects after the assignment.
  • Quota base quantity: This is the quantity used for manual control of the quota arrangement (for example, when new sources are included).
  • Quota: This number determines how requirements are apportioned among the various sources.

How to Create a Quota Arrangement

In this demonstration, you will learn how to create a quota arrangement.

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