Name: U5_L2_1.mp4
Uploaded: 2024-11-8
Duration: 419 s
Description: In addition to the procurement proposal, the system can also automatically determine the source of supply from which the material will be procured. In this video, learn the logic used by the system and how you can influence it.

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Determining a Source of Supply during Planning

<div id="content"><p tabindex="0">If a shortage is detected, the planning run determines whether the required material quantity is to be produced or procured externally. In the case of external procurement, it tries to find a valid source of supply among those available in the system (contract, scheduling agreement, or info record).</p><p tabindex="0">Let's listen to Julia, our virtual teacher. In the next video, she'll explain the logic of automatic source determination during the planning run, so that you can create and maintain your sources of supply accordingly.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_7wcglukf"></div></div><p tabindex="0">In addition to the procurement proposal, the system can also automatically determine the source of supply from which the material will be procured. In the previous video, Julia explained the logic used by the system and how you can influence it.</p></div>

Source of Supply Determination

Using Consumption-Based Planning in SAP S/4HANA

<div>In addition to the procurement proposal, the system can also automatically determine the source of supply from which the material will be procured. In this video, learn the logic used by the system and how you can influence it. </div>

U5_L2_1.mp4

Hello, I am now going to explain to you the logic of the automatic determination of the source of supply during the planning run. You should then be able to manage your supply sources appropriately. What is a source of supply? In the case of external procurement, the planning run searches for a suitable source of supply for material among the ones available in the system. Possible sources of supply are purchasing info records, scheduling agreements, and purchase contracts. How does the planning run determine the source of supply? The system first checks whether there are valid sources of supply for the material with a validity period that covers the delivery date of the procurement proposal. It then checks whether the available sources of supply can be used in the planning run. What does this mean? All scheduling agreements and purchase contracts are relevant sources for the planning run. Purchasing info records are relevant sources for planning only if they are marked as relevant for automatic sourcing. If not, they are ignored by the planning run. Here is a screenshot of the Manage Purchasing Info Records app. In this example, the automatic sourcing flag is set. What happens if the system finds more than one valid source of supply during the planning run? It uses the one with the highest priority based on the following rules: Scheduling agreements have the highest priority. If several valid scheduling agreements exist, the planning run first selects a scheduling agreement with active releases. Otherwise, the planning run selects the scheduling agreement with the lowest document number. If there is no scheduling agreement available, the system will search for contracts. If there are several valid contracts, plant-specific contracts have higher priority than cross-plant contracts. If more than one contract exists at the same organizational level, the planning run selects the one with the lowest number. If there is no scheduling agreement and no contract, the planning run looks for an info record that is marked as relevant for automatic sourcing. If the automatic sourcing indicator is set for more than one info record, the system assigns according to the following priorities. First, plant-specific info records have a higher priority than info records at the purchasing organization level. Second, lowest supplier number. Third,lowest purchasing organization number. Fourth, lowest purchasing group number. What is the result of source of supply determination? If the source determination is successful, scheduling agreements, schedule lines, or purchase requisitions with an assigned source are created, depending on which source was determined. If the system finds a scheduling agreement as the source, it creates one or more scheduling agreement schedule lines. If the source, determined, is a contract, the system creates one or more purchase requisitions with the contract item assigned. If an info record flagged as relevant for automatic sourcing is the determined as the source of supply, the system creates one or more purchase requisitions with the purchasing info record assigned. If the source determination is not successful, that is, if no valid source can be determined, the system creates a purchase requisition without an assigned source. Determining the supply source is then a subsequent task for operational procurement. I think you can clearly see the advantage of having sources of supply that can be used in the planning run. Either you get scheduling agreement schedule lines directly, or you get assigned purchase requisitions that you can then automatically convert into purchase orders. So, determining the source of supply during the planning run is a step toward more automation and time savings. For this reason, I would strongly recommend that you maintain valid sources of supply for your materials in your system. The basic source determination logic I have presented to you does not require any additional setup. All you need to do is maintain your sources. If this logic is not sufficient for your needs, you can override it temporarily or permanently. To do this, you must use source lists or quota arrangements, or both. Using a source list, you can define a specific source as relevant for planning or not, overriding the default logic. a source list record includes a validity period, you can limit this override to that period. You use quota arrangements when you want to distribute the requirements for a material among several sources over a certain period of time. In the quota arrangement, you specify a quota for each source. A quota arrangement is valid for a defined period. The planning run can use quota arrangements in two different ways. Either, each individual procurement proposal is assigned to one single source. The allocation to the different sources according to the quota arrangement is made progressively over the entire period of validity. Or, each procurement proposal is split and assigned to the different sources according to the quota arrangement. The lot sizing procedure controls which method is used. Note that if you use both quota arrangements and source lists for a material, quota arrangements take precedence over source lists for source determination during the planning run. You can either use the standard basic source determination logic, or you can introduce source lists or quota arrangements. Our goal is to have the most complete procurement proposals at the end of a planning run to avoid additional manual processing. We are now at the end of the theory on the planning steps. We will continue with extensive demos so that you can see the concrete results of the steps and also learn the different ways to start a planning run. Stay tuned!