GU - SAP S4 HANA - Configure Quota Arrangement in SAP MM

MICKAEL QUESNOT
CONFIGURE QUOTA ARRANGEMENT IN SAP MM

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Quota Arrangement :
As we know about source list, as well as source list, we can use quota arrangement.
We know source list is used for a source for a material. In purchase requisition there is a tab Assign Source of
Supply.
We can assign several vendors in source list so that when we press Assign Source of Supply, system will
automatically pick the vendor for the material.
We can assign many vendors to source list, at that time system will propose all vendor in source of supply
field and we must choose one from the list.
But via quota arrangement, we can give the quantity and percentage for a vendor, so if we maintain many
vendors in source list, system will take the correct vendor with comparison of quantity of document and quota
arrangement.
That is the main facility of quota arrangement.
To use quota arrangement, we must do some configuration, we have to maintain the quota arrangement, then
we can see the result.
Save your data.
Create Info record

Now suppose we have 2 vendors. They will supply the material. and we must use in quota arrangement as
per quantity basis for these vendors.
Maintain Business Partner app
Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

Directeur SAP SCM & Cloud Solutions (Concur, EnableNow)
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So, we have created Info record for each vendor with regards to material.
Manage Purchasing Info Records app.
Create valid info records for Each vendor.

Create Quota Arrangement
Go to Manage Quota Arrangements app
The initial screen will be appearing.

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Give the Material and Plant and then press enter.
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…

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Now press enter.
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.

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You can see the initial screen will be appeared for quota arrangement creation.
Here we can find many options for quota uses. We must 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.
I have used Maximum Quantity for quota arrangement selection.

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I have set the quota arrangement like this
If I use below 20 quantity in PR, then the source of supply will be the vendor 3.
From 21-50 quantity in PR, it will pick the source of supply 2.

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From 51-100 quantity in PR, it will pick the source of supply 1.
You can see I have given quota = 3 for vendor 3 and quantity 20 and its percentage shows 50.0, it means
When I use below or equal 20, then system will propose the vendor 3.

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Now we will check the uses for quota in Purchase Requisition.
I have created a PR with quantity 15.
When I have pressed the Assign Source of Supply, system has proposed me the vendor 3.
Manage Purchase Requisitions – Professional app

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You can see my default vendor is came into source of supply field.
Now I have changed the quantity 25.
System will show me a warning message

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That means system wants to propose me that as per quota arrangement entry, your prior vendor will be 2.

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Now when I press Assign Source of Supply, System will change the source of supply to 2.
Now I have changed the quantity to 90.
System will propose me the vendor 1.
And when I press the Assign Source of Supply, system will change the vendor to 1 in field source of supply.

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Now I have changed the quantity 110, as we can see in that position our quantity is exceed against quota
arrangement setup.

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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.

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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.
Now we can choose a source as per our requirement.
Just click on the line with the vendor number.
After pressing this, you can see the vendor.

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You can see the source of supply is raised as per our selection.
How to Remove a vendor from QA List
Now suppose you have ordered some quantity to the 3 vendors.

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As you can see, I have placed order for all vendors.
Now Vendor 2 inform us that he can’t deliver the material anymore. So, source of supply should not be vendor
2.
But if we order the material for qty 5 to 10, then it will show the vendor 2 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 2, so that it will not display on source of supply.
And suppose vendor KKNN003 will delivered the rest of quantity of vendor 2.
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 3 as source of supply.
It will be looks like that

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Or if you don’t want to change the quota sequence, then you can also change the maximum quantity.
Then it will be like this

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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 1 will supply the rest of quantity of vendor 2, in that case, you can increase the
maximum quantity of 1 as 110.
How to Add a Vendor in QA List
Now suppose vendor 4 wants to deliver the material, and you have to add the vendor KKNN004 in quota
arrangement list, so that the vendor will come automatically in source of supply.
Suppose vendor 4 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 enter the
quantity 5 in Quota Base Qty, so in quota calculation, then vendor will prior for just quantity 2.
Then you can add the vendor in existing QA list.
It will be looks like

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In this situation, Vendor 4 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 4 and over 2 it will goes to
vendor 3.
Vendor Selection With Same Quota
If you vendor content the same quota in QA, then the source list will be picked as per maximum quantity.
But in that scenario, you must maintain the sequence for maximum quantity.

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Here you can see my maximum quantity is 50 for vendor 1 and 500 for vendor 2. Both vendor has same
quota.
When I order below 50 quantity, system will propose the vendor 1 and when I order more than 50, then
system will propose the vendor 2 as source of supply.
In that way, we can configure quota arrangement in our system.

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GU - SAP S4 HANA - Configure Quota Arrangement in SAP MM

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MICKAEL QUESNOT

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

That is the main facility of quota arrangement.

Save your data.

Create Info record

Maintain Business Partner app

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Manage Purchasing Info Records app.

Create valid info records for Each vendor.

The initial screen will be appearing.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Give the Material and Plant and then press enter.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Now press enter.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

I have used Maximum Quantity for quota arrangement selection.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

I have set the quota arrangement like this

From 21-50 quantity in PR, it will pick the source of supply 2.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

From 51-100 quantity in PR, it will pick the source of supply 1.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Now we will check the uses for quota in Purchase Requisition.

I have created a PR with quantity 15.

Manage Purchase Requisitions – Professional app

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Now I have changed the quantity 25.

System will show me a warning message

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Now I have changed the quantity to 90.

System will propose me the vendor 1.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

Now we can choose a source as per our requirement.

Just click on the line with the vendor number.

After pressing this, you can see the vendor.

Mickaël QUESNOT https://www.linkedin.com/in/mickaelquesnot/

CONFIGURE QUOTA ARRANGEMENT IN SAP MM

How to Remove a vendor from QA List