Please Try search SDN first before posting basics.
here it goes :
Quota Arrangements means a material can be obtained from various sources of supply, each individual source of supply can be allocated a quota arrangement.
The quota arrangement is valid for a certain period of time and specifies exactly how the receipts are to be distributed amongst each source of supply.
You can set the quota arrangement for in-house production as well as for external procurement. Sources of supply can be:
- an individual vendor or outline agreement
- another plant, from which material should be procured
- a production version
To used quota maintenance, you have to maintained the quota arrangement usage for the respective material in the material master (MRP 2 view).
The quota arrangement usage determines whether a material is included in a quota arrangement and which operations lead to a quota arrangement. You can define, for example, that only purchase orders are included in quota arrangements or that procurement proposals created by the system in the planning run are also included.
- You define the quota arrangement usage in Customizing for Purchasing in the IMG activity - Define quota arrangement usage.
- You have maintained the quota file for the material.
- You define the sequence of the sources of supply, the quotas per source of supply and numerous other parameters in the quota file.
During the planning run, the system determines the sources of supply according to the quota file and assigns the procurement proposals to the sources of supply.
In external procurement, the procurement proposal is allocated to the appropriate vendor. This vendor is copied to the purchase requisition.
For every procurement proposal with a quota arrangement, the system updates the quota file, so that the quota arrangement is always based on the current situation.
Two procedures are available:
- Allocation quota arrangement: every lot is assigned to a source of supply
- Splitting quota arrangement: a lot is split among various sources of supply
- Further functions are also available for controlling quota arrangements. For example, you can set a maximum release order quantity that defines the maximum delivery capacity of one particular vendor.
The quota arrangement is an instrument used in sourcing administration i.e it basically divides the total requirement of a material over a period among certain sources of supply by assigning a quota to each source. The quota specifies which portion of the total requirement should be procured from a given source.
If a quota arrangement exists for a material, it is taken into account in the source determination process.
It is specified for a certain period. The existence of a quota arrangement does not involve the apportioning (among different sources) of an individual material requirement (that is the quantity set out in an individual purchase requisition). The entire requested quantity in a requisition is assigned to one source under the quota arrangement.
If you have maintained a quota of 60:40 say between two vendors then the system will first assign the requirement to the source with quota score of 60 fully, then, once this supply quantity is fullfilled it will move over to the other source having quota of 40. "
TCode for it is MEQ1/2/3 : for Quota create Change and display.
Quota Arrangements means a material can be obtained from various sources of supply & each individual source of supply can be allocated a quota.
The steps are:
1.Select Quota arrangement in material master,
How Maintain the Quota :
A quota arrangement file consists of quota arrangement records identifying the source (such as a vendor or an internal plant), the validity period, and the quota allocated to each source.
We can maintain the quota file. Following are the steps for maintaining this file.
A.T. Code: MEQ1
The initial screen for maintaining quota appears.
B.Enter the material number and the plant for the material that you want to use to maintain the quota file and choose. The header screen for maintaining quotas appears.
C.Enter the Valid to date for the quota arrangement item.
We can only define continuous validity periods for one material. In the first interval, the system sets the current date in the Valid from field. The Valid from dates of the other intervals are set continuously so that the day after the end date of the last quota item is set as the start date for the next item.
D.If we want to work with splitting quota arrangements, we will enter a minimum quantity here.
E.Double-click on the item to process.
The item screen now appears.
Here we will define the source of supply and other control parameters per item.
Allocating the source of supply to the quota item determines the procurement type that the procurement proposal receives. Therefore, we can specify via the quota arrangement that, for example, 60% of a material is produced in-house and the other 40% is procured externally.
F. Save entries.
For more check the links:
MM group wrote:
> What are the necessary configuration has to done for the same ??
The steps to be followed
IMG......>MM........?Purchasing..............>quota arrangement............>Define Number Ranges
In this step, you set up the number ranges.
The SAP R/3 System manages quota arrangement records as documents.
You assign each transaction to a number range group. You define the number range interval for each group. In addition, you stipulate whether numbers are assigned by the user (externally) or by the system (internally).
The following number range is predefined in the standard SAP R/3 System:
internal number assignment from 8000000001 to 8999999999.
SAP recommends that you accept the settings defined in the standard system. In this case, no action is required on your part.
1. Check the number ranges.
2. Change the following in accordance with your requirements:
Number range intervals
Secondly ,u need to define the quota arrangement usage ,
the path is IMG......>MM........?Purchasing..............>quota arrangement............>Define quota arrangement usage.
there u have to maintain for quota arrangement usage indicator what are the following documents are allowed.
after that go to material master in the purchasing view main tain this indicator and save.
now maintain Quota arrangement, select transaction MEQ1. Enter valid to date & min. splitting quantity. Min. splitting quantity indicates the quantity below which no splitting of quantity should be applied. After maintaining this select the line & select 'Item'. Enter following details in respective columns -
1) P - Type of procurement (Internal manufacturing, External Procurement).
2) S - Special procurement type. For example consignment / sub-contracting.
3) Vendor - Number of Vendor Master
4) PPI - Your internal plant from which you will be manufacturing the material.
5) Ver. - Production version.
6) Quota - The quota percentage in which the required quantity is to be splitt.
7) Maximum Quantity - Max qty which is to be assigned to this vendor.
8) Quota Base quantity - If you get a new vendor in the quota arrangement, the quota base quantity is to be entered here to avoid all requirements being assigned to the new vendor.
9) Max & Min Lot Size - The lot size related to this vendor.
10) Rounding Profile -
11) 1X - Mark tick here of the vendor is to be assigned only one lot during a MRP run. (may be due to capacity restriction).
12) Maximum Release quantity - Max qty the vendor should be assigned per MRP period.
13) No. - Number of periods for which the Max release qty relates.
14) P - Period to which this qty relates.
15) Pr - Priority determination sequence