QUOTA ARRANGEMENT
QUOTA ARRANGEMENT
Quota arrangement defines the percentage of purchase from different vendors for each Purchase
Order.
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.
Quota rating can be calculated by using the following formula −
Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota
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.
The mandatory setting before creating a quota is that the info record and the source list
should be maintained for the particular material. Also, in the material master, the source
list and quota arrangement usage check boxes should be checked. This setting can be
made in the material master by going to TCode MM03. In purchasing view, check
the quota arrangement usage and the source list. Setting is now maintained
for quota arrangement.
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QUOTA ARRANGEMENT
CONFRIGUATION OF QUOTA ARRANGEMENT
Navigational Path: SPRO – IMG – Material Management – Purchasing – Quota Arrangement –
Define Number Ranges: Click on execute.
Go to Groups Maintain button at the top. ( Standard document type for quota
arrangement is “Q”)
Go to Group Insert and enter text with number ranges. Press enter. I created a number range from
9000000101 - 199
Now select the number range we just created and then double-click on document type.
Now, click on Element/Group Assign button at the top to complete assigning the number
ranges.
Navigational Path: SPRO – IMG – Material Management – Purchasing – Quota Arrangement - Define
Quota Arrangement usage: Click on execute.
Go to new entries.
Choose the order type, press enter and click on save.
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QUOTA ARRANGEMENT
CREATE QUOTA ARRANGEMENT
Navigational Path: Logistics - Materials Management- Purchasing- Master Data -Quota
Arrangement- Maintain
TCode: MEQ1
Enter the material number and plant for which quota arrangement needs to be maintained.
Provide dates in ‘valid from’ and ‘valid to’ and value in ‘quantity split’.
Enter the name of vendors and the assigned allocated quantity to them. Click on Save. Quota arrangement
is now maintained for the particular material.
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QUOTA ARRANGEMENT
NOW LET’S UNDERSTAND HOW EXACTLY QUOTA ARRANGEMENT WORKS .
Go to ME51N – fill the details in item overview and then go to item – source of supply – click on assign
Source of supply . Save the PR . Go to MEQ3 and you will see that the allocated quantity is 400 .
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QUOTA ARRANGEMENT
Go again and create a new PR with 400 qty - source of supply – click on assign source of supply ,
you will see the other vendor will be selected automatically .
Notes :
How the vendors are selected totally depends upon the following listed outcomes
The vendor which is having minimum quota rating is selected first . For ex after we create the
Second PR , Vendor 90000000114 will have a quota rating of 8 ( i.e. 400/50) whereas the
vendor 9000000110 will have quota rating as 0 ( 0/50) . Hence the vendor with minimum quota
rating gets the source of supply .
If the quota rating is the same , then the vendor with the highest quota % will be selected first .
Now go to MEQ1 and add a new vendor and change the quota to 33% for all of them and create a
PR you would notice that the source of supply will be assigned to the new vendor as his quota rating
is low , So in order to avoid that what we maintain the quota base qty . Create a New PR again and you
Will see that the newly added vendor will not be the source of supply .( in my case the
source of supply was 90000000114)
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QUOTA ARRANGEMENT
T-CODES DESCRIPTION
MEQ1 Maintain
ME03 Display
ME04 Changes
MEQ7 Delete QA
ME0M Display QA by material
ME0L Display QA by VENDOR
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