Minimum Purchase Order Quantity

[Former Member]

Hi,

I have requirement for a business scenario where i need to accomodate Minimum Order Quantity for Purchasing.

Below is basic example

Minimum order qty for Material A, Vendor 1000 is 500

The consumption maintained in the Bill of Material is 1 and the sales order / line item requirement is 100.

When i run my MRP via /N/AFS/MD02 i get purchase requisitions for 100 but i need the quantity to be over written as 500 since the minimum order qty is 500. (How can i do this).

Whats the purpose of the Minimum Purchase Order Qty and Standard Purchase Order Qty in the inforecord

Whats the purpose of the the Minimum Lot Size, in the Material Master MRP 1 View.

The system i am using is SAP AFS 6.0. Appreciate your valuable feedbacks for the same.

Thanks & Regards

Shabeen Buhary

[Former Member]

Hi Shabeen. I have the same problem in ECC 6 EhP 7. I set minimum order quantity and rounding profile in Info Record, no rounding profile in material master. But when I run MRP (MRP type PD, Lot size EX), I look at stock/requirements list MD04 and I see purchase reqs with quantity just equal to my requirements. Note, I have set the vendor as fixed in the source list and made it MRP relevant.

There is either some settings not described in this thread, or this is an MRP flaw. I only get the minimum order quantity message when I covert the purchase req to a PO, but that is useless. If, for example, my minimum order quantity is 50 and my requirements are 5 pieces one week and 10 the next week then MRP should generate only one purchase req for 50. It shouldn't give me one req for 5 and one for 10, and then when I convert the req for 5 it tells me that I must order 50. Because when I convert that first req to a PO the system will order 50, but I still have the other req sitting in MD04 for next week for 10 pieces. It won't disappear until I re-run MRP.

Were you able to make settings so MRP will consider minimum order quantity of a fixed vendor in a source list and create purchase reqs accordingly? That's how this process should work so buyer/planners can work more efficiently.

[former_member182673]

You can achieve you requirement by using the Minimum Order quantity field. Whatever quantity you enter in that field, then system will ensure that no PO is created with a quantity less than that value. In MRP if the demand turns out to be less than this then PR will have the minimum order quantity value.

Similarly the minimum lot size will ensure that if the lot size quantity doesn't become less than this quantity, even though the quantity based on lot size procedure is less. System will increase it to minimum lot size quantity based on this value.

[Former Member]

Hi Ramesh,

I did maintain a Minimum Order Quantity as 500 and my BOM consumption was 1 and my sales order qty was 100. But my purchase requsitions got created for 100 and not the minimum order qty. Hence my purchase order also was for 100.

Is there any place i need to maintain some settings.

Regards

SHabeen Buhary

[former_member182673]

It should work. Please add screen shots.

How was the PO created, automatically from the MRP process itself or you carried out the source assignment to PR and then converted it into PO?

[Former Member]

Hi Shabeen,

The info record is applicalbe for Purchase Order only.

in your case you have said that purchase requistions created is less than Min.Order.Qty.

System will not allow when you convert PR to Purcahse Order

The Error should come as below when you create sales order with ref to Pur.Req

Order quantity below minimum order quantity 500.000 M from info

record

If it is warning message system will still allow you ,PLease change your message type as E-Error so that sytem wont allow.

[Former Member]

Hi Ramesh,

Herewith screenshots for your kind reference.

Inforecord view

MRP View

ME57 > ME21N View

Sales order qty is 75...

Minimum order qty maintained for material is 100.

Note : System prompts warning message that the minimum order quantity is 100 but it doesn't overwrite the Purchase order/line item quantity

Question : What if I have the same materials repeating in two line items of the PO, that is first line item having qty 30ea and the other having 40ea. Will 100 be added for each of the quantity

[Former Member]

Hi Zubair,

Herewith screenshots for your kind reference.

Inforecord view

MRP View

ME57 > ME21N View

Sales order qty is 75...

Minimum order qty maintained for material is 100.

Note : System prompts warning message that the minimum order quantity is 100 but it doesn't overwrite the Purchase order/line item quantity

Question : What if I have the same materials repeating in two line items of the PO, that is first lin

[Former Member]

The minimum order quantity caluculation hapeens for each line item irrespective of materials,

i.e both line line total is above 500 qty but each line item has 250 qty still the warnings message will come.

The order quantity in each order item per material and vendor of the

purchasing info record may not be smaller than the minimum order quantity

specified in the purchasing info record.

[former_member182673]

Hi Shabeen,

Looks like rounding profiles at material level and at vendor level (maintained in the info-record) seems to work for your requirement.

Please refer the following threads

http://scn.sap.com/thread/768803

http://www.sapfans.com/forums/viewtopic.php?t=125180&highlight=info

[Former Member]

Dear Ramesh,

Thanks alot for your valuable feedback. Actually we do have a rounding profile maintained and i maintained the rounding profile in the inforecord. But nor the purchase requisition or purchase order quantity changed to the minimum purchase order quantity.

Attached screenshots for reference

Inforecord

My sales order quantity is 6, but still the PR gets picked for 6 and not 50 (which is my minimum purchase order quantity). Appreciate your inputs for the same

Thanks & Regards

Shabeen Buhary

[Former Member]

Dear Csaba,

At present i have the same issue as logged in this message. Where i need the system to pick the minimum purchase order qty from the inforecord.

I am in the process of checking the possibilities of handling this issue with the help of other members on SCN. Would appreciate your inputs on the same as well. 

Thanks & Regards

Shabeen Buhary

[former_member182673]

As per the thread I forwarded, you have to use rounding profiles at material level and as well at info-record level. The info-record level rounding profile comes into picture only when you convert PR into PO. So try that part.

Even if that doesn't work, then the only option is to go for a user exit solution as I am coming to a conclusion that the "Minimum order value" is only resulting the activation of the relevant message and doesn't actually change the order quantity. Only additional option is to convert that message into an "Error message", but that will not be useful to you.

[Former Member]

Dear Ramesh,

I have created the rounding profile and have maintained the same profile for both inforecord and material master. (i created via OWD1). Are there seperate ways to create rounding profiles for material and inforecord.

As for the warning and error message, that options works in my present setup, but it doesn't solve the problem of maintaining the Minimum Order Qty. Is it because i work on the AFS Platform that it doesn't work...

Thanks for your valuable feedback

[former_member182673]

I don't think it is related to you system being AFS, What I meant is that the standard functionality of using the "Minimum order value" seems to is to only activate that message. It will not change the quantity, so go for a user exit solution by using the conditions that triggers this message and then through user exit code modify the quantity.

[Former Member]

Dear Ramesh,

Noted. Thanks alot

[JL23]

May I asked what kind of solution you expect?

What will happen if the PR quantity would be rounded to 50, while the customer just needs 6?

your PR is with account assignment to sales order, so both quantities will not equal.

When you receive the 50, then you receive it to sales order stock only.

Finally you issue only 6 of them and 44 remain in the sales order stock.

How is then the next sales order created?

I mean, if your usual process is to purchase to salese order, then it is unusual that the sales order will be created to be sourced from inventory. But this is a very  basic decision when starting to create a sales order.

So assuming the next sales order is created like the first one, then another PR is triggered with account assignment sales order. 

without manual interaction you will create a lot stock which will never be used.

if you have such minimum order quantities, then you process should be to fulfill the demand from your inventory instead of procurement made directly to sales order.

thats just my thoughts

[Former Member]

Dear Jurgen,

Firstly thanks for your feedback....

As for the scenario we are compelled to meet the suppliers Minimum order quantity in order to purchase Raw Materials for our production purpose.

You are right as in we will have stock more than the actual required quantity. Well these stocks would be either transferred or written off upon completion of the sales orders. Eventually we get paid from are customers for the same.

The problem we are having right now is that when purchasing is carried out, the suppliers correspond back to us to change the PO Qty so that it meets there minimum order quantity. Which we have to pay for, since currently we don't maintain Minimum Order Qty the end user need to edit the PO every single time....

As a solution what is required is that - when a Purchase order is raised we take into consideration the minimum order quantity for the material vendor and accumulate the quantity required in the PO for all Line items of the same material , if the Minimum requirement is not met, the adjustment needs to be done for a single Purchase Order Line item..

Hope this is clear... As is in sap we get a message indicating at line item level if the minimum order quantity is not met... Is there a mechanism to overwrite the quantity to the Minimum Order Quantity.

Thanks & Regards

Shabeen Buhary

[JL23]

the most straight forward way would be to implement a minimum order quantity yourself with your customer. in material master you can then enter the min.delivery quantity in sales org view.

Alternative:

I suggest you create your sales orders to be sourced from inventory instead of  direct procurement to sales order.

then the MRP run can plan accordingly and take your rounding quantities into account.

the stock will be stored anonymous in your location, and can be used for any sales order.