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MM Split Quota in Procurement
MM Split Quota in Procurement
MM Split Quota in Procurement
Applies to:
SAP ECC6.0 For more information, visit the Enterprise Resource Planning homepage
Summary
This document explains the P2P consultants how to setup a realistic Quota arrangement in procurement that
will take care of the practical business considerations.
Author(s):
Prabhu Sundararaman
Author Bio
Prabhu Sundararaman is an associate consultant at Larsen & Toubro Infotech Ltd.,
Chennai, India. He has totally 15 yrs. experience implementing ERP and IT systems
for the manufacturing industry. He has around 5 years of SAP experience in the area
of MM, CIN & WM.
Table of Contents
Applies to:.........................................................................................................................................................1
Summary...........................................................................................................................................................1
Author Bio..........................................................................................................................................................1
Table of Contents..............................................................................................................................................2
Introduction to Quota Arrangement:...................................................................................................................3
Default Quota Arrangement in SAP:..................................................................................................................3
Practical considerations while implementing default SAP quota arrangement:...................................................4
Alternate solution through Split Quota in SAP:.................................................................................................5
Split Quota - Solution in detail:...........................................................................................................................5
Validation of Split Quota:...................................................................................................................................9
Conclusions:....................................................................................................................................................11
Quota
Quota-allocated
quantity
200
200
200
Where 2,3 & 5 are the quotas assigned to the sources (representing 20%, 30% and 50% quotas); Quota
base qty is zero to start with.
System calculates the quota rating as follows:
Quota rating for vendor A = (200+0)/2 = 100
Quota rating for vendor B = (200+0)/3 = 66.67
Quota rating for vendor C = (200+0)/5 = 40
As per system, the vendor with lowest quota rating i.e vendor C, will be the valid source for the next
requirement.
Let us say there is a requirement of 150 nos for the material. The entire requirement is assigned to the
vendor C. i.e when MRP is run, system generates procurement proposal of 150 nos on vendor C.
Now the changed quota position is as follows:
Vendor
Quota
Quota-allocated
quantity
200
200
350
The quota allocated qty for Vendor C has become 350 while that of the other 2 vendors is the same.
Now the quota ratings for the 3 vendors will be as below:
Quota rating for vendor A = (200+0)/2 = 100
Quota rating for vendor B = (200+0)/3 = 66.67
Quota rating for vendor C = (350+0)/5 = 70
As we can see, vendor B is now the valid source for the material because it has got the lowest quota rating
of 66.67. Therefore, the next requirement for the material will be entirely allocated to vendor B.
Thus, we can understand that there is a round robin method of allocating the material requirements to the 3
vendors viz., only one vendor gets the entire share of the requirement at any given time, depending upon
its quota rating and the other vendors have to wait for their turn for getting their quota.
If this indicator is set, then the lot is split up in the planning run according to the following formula:
Step2:
Assign quota arrangement usage (for eg. 4) to the material master Purchasing View.
The quota arrangement usage 4 includes all relevant MRP elements like POs, Schedule Lines, Planned
orders, Purchase requisitions etc.
Step3:
Assign the newly created Z lot sizing procedure (ZQ) to the material in MRP1 view.
Step4:
Maintain Info-records for the material and each of the vendors in ME11. For example consider that the material
number is 166296 and there are 2 approved vendors 102735 and 102738, standard info-records have to be
maintained for both these vendors for the material. Please note that the existence of info-records for the
concerned vendors is a pre-requisite for quota arrangement to work.
Step 5:
Maintain source list for the material, with the relevant scheduling agreement items & MRP indicator 2. This
setting will ensure that there is automatic generation of schedule lines through MRP.
Please note that if only purchase requisitions are to be generated for the material (in place of schedule lines),
then the inputs for scheduling agreement and item are not to be filled in and the MRP indicator will have to be
set to 1.
Step 6:
Define quota arrangement using tcode MEQ1. It involves the following:
6 a. Quota Arrangement Header:
Specify a validity period for the quota. Also specify the minimum quantity of the requirement from which quota
arrangement is to be active; Usually this is 1.0 meaning splitting should be active even for a requirement of 1
unit of the material.
With the above steps 1 to 6, the solution design is complete and we are ready to test the split quota
functionality in SAP.
From the planning results, we can see that system has generated 2 sets of schedule lines. Click on Vendor
button at the bottom of the screen to see which vendor (vendor code and name) has actually bagged the
procurement proposal. System shows the vendors from the quota arrangement.
For eg., the 1st order reservation for 1000 nos. dated 31.10.2011 has generated 2 schedule lines for 600 nos
and 400 nos for vendors 102738 and 102735 respectively and the 2nd reservation for 3000 nos. dated
08.11.2011 has generated 2 schedule lines for 1800 nos and 1200 nos. on the 2 vendors. This splitting is as
per the quota arrangement that we have defined.
If the MRP indicator has been set to 1 in the source list, then system would have generated Purchase
Requisitions instead of schedule lines during MRP.
Save the planning results of MRP run for further processing.
Conclusions:
Share of business in procurement can be handled by using Quota arrangement functionality in SAP with the
help of minor configurations and without having to go for ABAP enhancements.
Practical business scenarios require the design and use of Split Quota system in SAP.
However, a successful implementation of Quota system in SAP requires discipline from the user community in
maintaining all the necessary master data required.
Related Content
http://scn.sap.com/thread/2103997
http://help.sap.com/saphelp_ides/helpdata/en/fd/45bdde9d6411d189b60000e829fbbd/content.htm
http://help.sap.com/saphelp_46c/helpdata/en/75/ee117955c811d189900000e8322d00/content.htm