SAP MM - Configuration of
Quota Arrangement
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Quota Arrangement
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.
The key points to note about quota arrangement are as follows −
• Quota arrangement divides the total requirement of material among certain sources
of supply,
i.e., vendors, and then assigns a quota to each source.
• This particular quota specifies the portion of material that is to be procured from an
assigned vendor or source.
• Quota rating is used to determine the amount of material that is to be assigned to a
particular source or vendor. The source with the lowest quota rating represents a
valid source.
• Quota rating can be calculated by using the following formula –
Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota
• Where Quota Allocated Quantity is the 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.
PREREQUISITE;
1. In the material master, the quota arrangement usage is selected & source list
checkboxes should be checked.
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2. Info record should be maintained for the particular material.
Purchase info record; T-code – ME11
Source list; T-code – ME01
CREATE QUOTA ARRANGEMENT
Plant 1000 Storage location 0001
Purchase organization MK10
Vendor 700236, 700237, 700238
For material 60000313, we are going to create quota arrangement with vendor 700236 &
700237 Maintain Quota arrangement; T-code – MEQ1
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1. Now, we try to create an assigned purchase requisition, and let’s observe the result.
T-code – ME51N
Here vendor 700236 is assigned automatically
As we create purchase requisition for 1000 quantity, this 1000 quantity is shown as
allocated quantity to the vendor 700236.
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Nowhere, using the formula for quota rating we are going to calculate quota rating for
both the vendor.
Vendor Quota Rating
700236 1000/67 =
14.9
2. Now 700237 0/33 = 00.0 again we are going to try to create a purchase
requisition with 1000 quantity, here we expect vendor 700237 is going to auto
assign because that vendor has minimum quota rating.
Here vendor 700237 is assigned automatically
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As we create purchase requisition for 1000 quantities, this 1000 quantity is shown
as allocated quantity to the vendor 700237.
Nowhere, using the formula for quota rating we are going to calculate quota rating
for both the vendor.
Vendor Quota Rating
700236 1000/67 =
14.9
700237 1000/33 =
30.3
3. Now again we are going to try to create a purchase requisition with 1000 quantity,
here we expect vendor 700236 is going to auto assign because that vendor has
minimum quota rating.
Here vendor 700236 is assigned automatically
As we create purchase requisition for 1000 quantities, this 1000 quantity is added
to allocated quantity of the vendor 700236.
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Nowhere, using the formula for quota rating we are going to calculate quota rating
for both the vendor.
Vendor Quota Rating
700236 2000/67 =
29.8
700237 1000/33 =
30.3
4. Now again we are going to try to create a purchase requisition with 1000
quantities, here we expect vendor 700236 is going to auto assign because that
vendor has minimum quota rating.
Here vendor 700236 is assigned automatically
As we create purchase requisition for 1000 quantities, this 1000 quantity is added
to an allocated quantity of the vendor 700236.
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Nowhere, using the formula for quota rating we are going to calculate quota rating
for both the vendor.
Vendor Quota Rating
700236 3000/67 =
44.7
700237 1000/33 =
30.3
5. Now we add one more vendor 700238 and allowed him quota of 50
Here, we add another vendor and assign him 50 as a quota. So, Quota in percentage
is automatically calculated, accordingly.
Nowhere, using the formula for quota rating we are going to calculate quota rating.
Vendor Quota Rating
700236 3000/67 =
44.7
700237 1000/33 =
30.3
700238 0/50 = 00.0
Now, we try to create an assigned purchase requisition.
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As, we see here the vendor 700238 is assigned to this way purchase requisition
because this vendor as minimum quota rating.
In this condition, most of the purchase requisition create after adding a new vendor
is going to assign to that vendor, which is not a good practice. So, for that we have to
maintain quota base quantity as its quota rating is increased as per business
requirements.
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Let’s cancel this purchase requisition and add quota base quantity as 1600.
6. Now again we are going to try to create a purchase requisition with 1000 quantity,
here we expect vendor 700236 is going to auto assign because that vendor has
minimum quota rating.
Vendor Quota Rating
700236 3000/67 =
44.7
700237 1000/33 =
30.3
700238 1600/50 =
32.0
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A. Now here we are going to see how quota arrangement work in MRP run for material
60000516
Pre requisite;
We have maintained the source list
Info record with 3 vendors
Quota arrangement with different quota
MRP view maintain
Quota rating is 0 for all because no procurement or allocated quantity is there,
Here we observe that the total requirement is 2000 qty and this requirement is
distributed among all three vendors as per their quota percentage.
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