Quota Arrangement

What Is Quota Arrangement 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. ources 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 maintain the quota arrangement usage for the respective material in the material master "#$% & 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 You define the quota arrangement usage in (ustomi)ing for %urchasing in the *#+ activity - efine quota arrangement usage. - You You have maintained the quota file for the material. - You You define the sequence of the sources of supply, the quotas per source of supply and numerous other parameters in the quota file. uring 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. *n external procurement, the procurement proposal is a llocated to the appropriate vendor. This vendor is copied to the purchase requisition. or 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 Allocation quota arrangement! every lot is assigned to a source of supply - plitting quota arrangement! a lot is split among various sources of supply - urther functions are also available for controlling quo ta arrangements. or example, you can set a maximum release order quantity that defines the maximum delivery capacity of one particular vendor.

*n ummary! 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. *f a quota arrangement exists for a material, it is taen into account in the source determination process. *t is specified for a certain period. The existence o f 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.