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A particular material can be procured from different vendors depending upon the requirement. In this
way, the total requirement of a material is distributed to different vendors, i.e., the quota is assigned to
each source of supply. This is known as quota arrangement.
Where Quota Allocated Quantity is total quantity from all orders that is procured from a particular
source. Quota Base Quantity is quantity from new source of supply. Quota is total requirement of
material that is given to a particular source of supply.
Configuration
In this part, we will configure all things which is required for quota arrangement.
Enter your number range.. You can set the number range as external or internal (Its depend on your
business process).
As you can see I have selected only Purchase Requisition but you can select these option as per your
business requirement.
Now we have to give assign quota arrangement uses to material master. Go to MM02, enter your
material, select plant and in purchasing tab give the newly created Quota arrangement uses number.
Now suppose we have 3 vendors KKNN001, KKNN002, KKNN003, they will supply the material. and we
have to use in quota arrangement as per quantity basis for these vendors.
So we have created Info record for each vendor with regards to material.
Go to MEQ1
You can see the above screen. Enter the valid to date, (Valid from date will be automatically set as
current date of quota arrangement create date). In the option Minimum qty split, Its specify for the
splitting quota (for more help, you can press F1 on this option). You can choose as per your business
process…
After pressing enter, You can see the date from is appeared as current date.
Then you can choose Item or you can double click on the line item.
You can see the initial screen will be appeared for quota arrangement creation.
Here we can found many options for quota uses. We have to choose as per our business process.
To know about every field, you can select the field and press F1 for a help topic for the field.
If I use below 20 quantity in PR, then the source of supply will be the vendor KKNN003.
From 21-50 quantity in PR, it will pick the source of supply KKNN002.
From 51-100 quantity in PR, it will pick the source of supply KKNN001.
You can see I have given quota = 3 for vendor KKNN003 and quantity 20 and its percentage shows 50.0,
it means When I use below or equal 20, then system will propose the vendor KKNN003.
Now we will check the uses for quota in Purchase Requisition.
When I have pressed the Assign Source of Supply, system has proposed me the vendor KKN003.
You can see my default vendor is came into source of supply field.
That means system wants to propose me that as per quota arrangement entry, your prior vendor will be
KKNN002.
Now when I press Assign Source of Supply, System will change the source of supply to KKNN002.
Now I have changed the quantity to 90..
And when I press the Assign Source of Supply, system will change the vendor to KKNN01 in field source
of supply.
Now I have changed the quantity 110, as we can see in that position our quantity is exceed against
quota arrangement setup.
Now we can see system will propose the all vendors which is can be used as source of supply not only
the quota arrangement setup..
Here we can see, system is not proposing me only the vendor which is under quota arrangement,
system will propose me all vendor which can a source for this material, and also system will gives us a
warning message “Choose a source of supply”
Just click on the blank option which is left on the vendor number.
After pressing this, you can see a green indicator on the vendor.
You can see the source of supply is raised as per our selection…..
Now Vendor KKNN002 inform us that he can’t deliver the material any more. So source of supply should
not be vendor KKNN002.
But if we order the material for qty 5 to 10, then it will shows the vendor KKNN002 as source of supply.
In that position, we can;t delete the vendor from quota arrangement, because we have already placed
some order.
We have to just remove the quota from vendor KKNN002, so that it will not display on source of supply..
And suppose vendor KKNN003 will delivered the rest of quantity of vendor KKNN002.
Then we can increase the maximum quantity to 30. So that when we placed order for quantity 1 to 15, it
will always take the vendor KKNN003 as source of supply.
Or if you don’t want to change the quota sequence, then you can also change the maximum quantity.
Just change the maximum quantity as same as allocated quantity, then the vendor will not able to use in
source of supply..
If you want that the vendor KKNN001 will supply the rest of quantity of vendor KKNN002, in that case,
you can increase the maximum quantity of KKNN001 as 110.
Now suppose vendor KKNN004 wants to deliver the material, and you have to add the vendor KKNN004
in quota arrangement list, so that the vendor will com automatically in source of supply.
Suppose vendor KKNN004 inform you that he can borrow the order of maximum quantity 7.
But the vendor has already supplied the material with quantity of 5. In that situation, you have to
entered the quantity 5 in Quota Base Qty, so in quota calculation, then vendor will prior for just quantity
2.
In this situation, Vendor KKNN004 will be sourced for only quantity (7-5)= 2 quantity.
If you have placed order below than 2 quantity, then the source will be vendor KKNN004 and over 2 it
will goes to vendor KKNN003.
If you vendor content the same quota in QA, then the source list will picked as per maximum quantity..
But in that scenario, you have to maintain the sequence for maximum quantity…
Here you can see my maximum quantity is 50 for vendor KKNN001 and 500 for vendor KKNN002. Both
vendor has same quota.
When I order below 50 quantity, system will propose the vendor KKNN001 and when I order more than
50, then system will propose the vendor KKNN002 as source of supply.
In that way, we can configure quota arrangement in our system…