Configuration of Quota

Arrangement
Contributed By
Nikhil Patil
Guided By
Prashun Shetty
 What is Quota Arrangement
• A particular material can be procured from different vendors depending
upon the requirement. In this way, the total requirement of a material is
distributed to different vendors, i.e., the quota is assigned to each source
of supply. This is known as quota arrangement. The key points to note
about quota arrangement are as follows:
• 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. The source with the lowest
quota rating represents a valid source.
• Quota rating can be calculated by using the following formula −
Quota rating = (Quota Allocated Quantity + Quota Base Quantity)/Quota
• Where 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 T-Code MM03. In
purchasing view, check the quota arrangement usage and the
source list. Setting is now maintained for quota arrangement.
 Step 1: Define Number Ranges for Quota Arrangement

• Go to OMEP or Path SPRO-->IMG-->Materials Management-->Purchasing--

>Quota Arrangement-->Define Number Ranges
Click on the Intervals

Enter your number range. You can set the number range as external
or internal (Its depend on your business process).
Then Save your Data.
 Step 2: Define Quota Arrangement Usage

• Go to SPRO-IMG-->Materials Management-->Purchasing-->Quota
Arrangement-->Define Quota Arrangement Usage
• You can see in My system 1,2,3,4 is already created. Now I am going to
create Quota arrangement Usage 5.

Click on New Entries

As I have selected Purchase Order and Purchase Requisition but you can
select these options as per your business requirements.
Then Save the data.
 Step 3: Assign Quota Arrangement to Material Master

• Go to MM02, enter your material, select plant and in purchasing tab give
the newly created Quota arrangement usage number and Save your data.
 Step 4: Create Purchase Info Record for Supplying Vendors

• Now suppose I have 3 vendors 1517, 1518, 1519,

they will supply the material. and we have to use in
quota arrangement as per quantity basis for these
vendors.
• So we have created Info record for each vendor with
regards to material.
• Create 3 valid info records for Each vendor.
 Step 5: Create Quota Arrangement
T – Code – MEQ1

• Give the Material and Plant and then press enter.

• or Path SAP Menu-->Logistics-->Materials Management-->Purchasing-
>Master Data-->Quota Arrangement-->MEQ1-Maintain
• You can see the below screen. Enter the valid to date, (Valid from date will
be automatically set as current date of quota arrangement create date)
• In the option Minimum qty split, Its specify for the splitting quota (for
more help, you can press F1 on this option). You can choose as per your
business process…
• Now click enter.
• After clicked enter, You can see the date from is appeared as current date
Then you can choose Item or you can double click on the line item
 I have set the quota arrangement like this
If I use below 100 quantity in PR, then the source of supply will be the
vendor 1519.
From 101-150 quantity in PR, it will pick the source of supply 1518.
From 151-200 quantity in PR, it will pick the source of supply 1517.
• You can see I have given quota = 3 for vendor 1519 and quantity 100 and its
percentage shows 50.0, it means When I use below or equal to 100, then
system will propose the vendor 1519.
• Now we will check the uses for quota in Purchase Requisition.
• I have created a PR with quantity 95 as shown below.
• When I have pressed the Assign Source of Supply, system has proposed me the
vendor 1519.
• You can see my default vendor is came into source of supply field.
• Now I have changed the quantity 105.
• System will shows me a warning message as shown below.

• That means system wants to propose me that as per quota arrangement entry,
your prior vendor will be 1518.
• Now I have changed the quantity to 95.
• System will propose me the vendor 1519 as shown in below image.
• Now I have changed the quantity 210, as we can see in that position our
quantity is exceed against quota arrangement setup.
• Now we can see system will propose the all vendors which is can be used
as source of supply not only the quota arrangement setup.
• System will gives us a warning message “Choose a source of supply”
• Here we can see, system is not proposing me only the vendor which is
under quota arrangement, system will propose me all vendor which can a
source for this material.
• Now we can choose a source as per our requirement.
• Just click on the blank option which is left on the vendor number.

After click this, you can see a green indicator on the vendor.
Now click on Assigned Source.
Now you can see the source of supply is selected as per our selection.
Thank You