08) Quota Arrangement in SAP MM (ECC / S4 HANA)

The quota arrangement is an instrument used in sourcing administration. A quota arrangement 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.
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[@mohamedsofianefeghouli96]

🎯 Key Takeaways for quick navigation:
00:02 *Introduction to quota agreements in SAP MM, covering aspects in both ECC and S4HANA.*
00:16 *Overview of source determination changes and detailed coverage of quota agreements with and without MRP.*
00:44 *Explanation of quota agreements as a method to divide material requirements among multiple vendors based on predefined quotas.*
01:35 *The system automatically assigns predefined quotas according to rules using MRP or PR.*
02:03 *Quota rating calculation formula: allocated quantity plus base quota quantity divided by quota.*
02:52 *The vendor with the lowest quota rating is prioritized, with max quota selected if ratings are the same.*
03:32 *Essential T-codes for quota agreements, primarily MEQ1, with other useful but non-essential T-codes.*
04:13 *Changes in quota determination logic between ECC and S4HANA, highlighting the removal of source list requirement in S4HANA.*
05:50 *Required elements for quota agreements: multiple vendors, material with activated quota agreement in the material master, and purchasing info records.*
06:42 *Demonstration of creating vendors and material, highlighting the quota agreement checkbox in the material master.*
09:42 *Creating purchasing info records for vendor-material combinations.*
12:10 *Maintaining the quota agreement using T-code MEQ1, assigning quotas to vendors.*
14:29 *Example quota distribution among three vendors: 25%, 40%, and 35%.*
16:19 *Testing quota agreement by creating a purchase requisition and checking source assignment.*
18:43Explanation of how the system updates allocated quantities and calculates quota ratings based on purchase requisitions.
24:50 *Including a new vendor in the quota agreement and using base quantity to prevent unnecessary advantages for the new vendor.*
29:05 *MRP with quota agreements, emphasizing the importance of the lot sizing procedure with splitting.*
32:56 *System behavior during MRP run, showing how it directly creates purchase requisitions based on maintained quota quantities.*
33:36 *Setting minimum split quantity above the reorder point ensures MRP selects only one vendor.*
34:32 *Minimum split quantity is useful for assigning specific cycles to vendors.*
35:35 *Setting maximum quantity in quota agreements restricts the quantity a vendor can receive in one occurrence.*
37:20 *The system skips vendors whose maximum quantity has been utilized.*
38:27 *Maximum lot size per quota item ensures the system creates multiple smaller PRs instead of one large PR.*
39:48 *Activating the one-time usage checkbox limits the vendor to only one PR allocation per MRP run.*
41:46 *Minimum lot size ensures the system creates PRs of at least the specified quantity.*
42:39 *Maximum and minimum lot sizes are used to control PR quantities within defined limits.*
43:09 *Summary: Create vendor/BP, assign quota agreement tick in material master, and maintain purchasing info records.*
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[@pranalisameervlogs5115]

Thanks a lot for sharing….
Your presentation skills are amazing ☺️
I am preparing for interviews based on your videos only.🎉

[@SAP-Tutorials]

Thanks for your feedback.

[@mguru1982]

the way you explain is so smooth and clear, that hardly leave any room for doubts 👏

[@Manojkumar-co2ui]

Hi brother am also done the same type of yours procedure but while doing me51n assign source of supply it was shown no possible to assign a source of supply, in this scenario which vendor we have maintained in highest quota in that vendor was not taken to while i was click the assign source of supply what should i do?

[@jsantoshan]

Quota arrangement usages field not available in Purchase view S4 hana 2022

[@mdazmath1993]

You don't need to tick source list in Purchasing Tab when creating material? Is it not mandatory?

[@jitendrasutar1735]

Sir Could you please make videos on SAP MM Support tickets 😊

[@shivamstech9491]

Sir what if we have 3 material like *blue bottle,green bottle,red bottle* and we have 3 vendor in Quota arrangement.I want to order 1000 bottles (800 blue, 100 red, 100 green) ,While creating assigned PR with source determination, how the PR will be distributed?

[@SAP-Tutorials]

Use vendor subrange, or batch management

[@vibek1411]

very nice explanation sir , i have learn this topic from some other teacher but no one explains like you

[@SAP-Tutorials]

Glad to hear that

[@sudhakarpawar8396]

Thank you sir for making complex topic so simple with example

[@mguru1982]

Hi, I don't see the Quota ar. usage field under Purchasing tab in material master ! Can you please suggest ?

[@SAP-Tutorials]

Check material type configuration, and see if someone made it hidden.

[@amalpatar8327]

Sir please make videos on this topic :-
1-Reporting
2-Table and it's uses 3- Standard & Customized table
4-Request formulation Introduction
Sir Please consider these topics

[@mbhaskar4058]

HI SIR R U THERE IN UDEMY

[@SAP-Tutorials]

@@mbhaskar4058 no

[@bipinmhatre510]

Hi..Quota is 80 and 20..Lot size is 5000. Here requirements goes always to vendor with 80. How to control this.

[@sivanand.b4474]

Thanks

[@SAP-Tutorials]

Welcome

[@mnn3964]

thank you. nice video 🙏👏👏

[@SAP-Tutorials]

Welcome

[@sudhakarpawar8396]

Thank you Sir

[@ongchinchye513]

Thanks

[@mohamedabdelaziz1163]

Impressive

[@blanquisramirez9165]

Can we setup Quotas by MRP Area?

[@Rajeshkumar-gy5yk]

Very well explained

[@SAP-Tutorials]

Thanks

[@shubhamsunape8362]

Thank you sir for knowledge sharing🙏😇

[@SAP-Tutorials]

Welcome!