Can someone pl explain Quota arrangement process in MM?

[Former Member]

Hi Folks,

I am new to MM, could someone pl explain the quota arrangement steps step by step anything with screen would be very helpful

for beginners like me with examples.

Also could some also pl tell me the Source priority in terms of Source of supply?

Thanks.

Steve

[former_member335885]

If 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

Prerequisites

1. You have maintained the quota arrangement usage for the respective material in the material master (MRP 2 view).

2. 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.

3.You have maintained the quota file for the material.

4.You define the sequence of the sources of supply, the quotas per source of supply and numerous other parameters in the quota file.

Also follow the link to get details abt the same:

http://help.sap.com/erp2005_ehp_03/helpdata/EN/f4/7d267944af11d182b40000e829fbfe/frameset.htm

Transactions

u2022 MEQ1 Maintain Quota Arrangement

u2022 MEQ3 Display Quota Arrangement

u2022 MEQ4 Changes to Quota Arrangement

u2022 MEQ6 Analyze Quota Arrangement

u2022 MEQ7 Delete Quota Arrangement

u2022 MEQ8 Monitoring Quota Arrangement

u2022 MEQM Quota Arrangement for Material

u2022 MEQB Start Background Job for Report RM06Q003

u2022 MM02 Maintain Quota Arrangement Usage in Purchasing View

Hi,

Go to MM02 - In "Purchasing" view, enter "Quota arr. usage" as "4" and save.

Also maintain MRP views of the material master.

Now go to OMI4 - here for MRP Lot Size (For e.g. EX), activate "Splitting Quota" for Short-term as well as Long-term planning both and save.

Now go to MEQ1 - here for material master and plant and press enter, here maintain valid to date and pres enter and double click on this

Here enter Procurement as "F" (External Procurement), also enter all the vendors and enter Quota as per requirement for all the vendors.

Prerequisite for Quota Arrangement is Purchase Info Record and Source List must exist for the material.

Now maintain Planned independent requirement for material in MD61 and then run MRP for the material in MD02 and check system will generate the PRs for the material for all the vendors maintained in MEQ1.

hope it helps..

Regards

Kiran

[former_member192897]

To set up a quota arrangement for the procurement of a material, proceed as follows:

Master data -> Quota arrangement -> Maintain, enter the material and plant number, press ENTER to display the overview screen for the quota arrangement periods, Enter a validity period for quota arrangement, Enter date until which the quota arrangement is valid. The start date is calculated by the system. Press ENTER .

Select the quota arrangement and choose Goto -> Item overview to display the item overview screen of the quota arrangement. Enter a quota arrangement item for each source of supply you want to include in the quota arrangement.

You must enter the following data.

- Procurement type

- Special procurement type, Enter k in the S column, for example, if a consignment arrangement for the material exists with the vendor.

- Vendor number

- Procurement plant (supplying plant):

- Quota column, enter the quota assigned to each item.

Press ENTER .

The percentage distribution of the quotas is calculated and displayed automatically by the system.

Save the quota arrangement. The system assigns a number to the quota arrangement item automatically

[Former Member]

Dear,

Quota Arrangements :

In simple words: Distributing the requirements quantity between potential source of suppliers (Vendors) - basing on their order fulfillment capacity.

In business terminology:

Quota arrangements allow you to define target percentages and distribute them between two or more purchasing contracts. A quota arrangement ensures that a contract is guaranteed both a minimum sales volume and a percentage of the total purchasing volume of the product category or product. A quota arrangement has the highest priority in the sourcing process.

Quota Arrangements

Quota Arrangements means a mechanism enabling the system to compute which source of supply to assign to a requirement for a material.

If 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.

We can set the quota arrangement for in-house production as well as for external procurement. Setting quotas permits the automatic apportionment of a total material requirement over a period to different sources.

Sources of supply can be:

- an individual vendor or outline agreement

- another plant, from which material should be procured

- a production version

Quota Arrangement Usage

The quota arrangement facilitates the determination of the applicable sources of supply for the following at a certain time.

Purchase orders

Scheduling agreement delivery schedules

Planned orders

Purchase requisitions

Materials planning and control

In customizing activity, we specify for each material master record which quota arrangement rule is allowed. We group the usage combinations you have chosen under different keys.

We have to assign quota arrangement usage key to material master record in purchasing or MRP2 view (Maintaining Material Master Record T.Code MM01)

The quota arrangement usage determines whether a material is included in a quota arrangement and which operations lead to a quota arrangement.

We have to maintain the quota file for the material. Here we define the sequence of the sources of supply, the quotas per source of supply and numerous other parameters in the quota file.

Maintaining the Quota File

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.

T. Code: MEQ1

The initial screen for maintaining quota appears.

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.

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.

If we want to work with splitting quota arrangements, we will enter a minimum quantity here.

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, 75% of a material is produced in-house and the other 25% is procured externally.

Save entries.

Regards,

Syed Hussain.