Subcontracting Using Scheduling agreement with MRP

Requirement – Subcontracting Orders to be generated as schedule line using MRP.

Solution is as follows.

Step 1

Transaction Code: MM01

Path Logistics  Materials Management  Material Master  Material
 Create (general)  Immediately

Create Material Master with source list marked in Purchasing view and Special Procurement type is 30 in
MRP2 View.

Source List to be marked in Purcahsing data view of material master record.

Procurement type in F

In MRP-2 view, Special procurement 30 – Subcontract

Step 2.

Create Q-Info Records.

Transaction: QI01

Menu Path: Logistics  Quality Management  Quality Planning  Logistics
Master Data  Q-Info Record: Procurement  Create

Step 3.

Create a Scheduling Agreement (Doc. type LP).

Enter the firm zone: Zone in which the requirement should be converted to Schedule lines.

Save the document

Step 4.

Create Source List

Transaction: ME01

Path: Logistics  Materials Management  Purchasing  Master Data
 Source List  Maintain

In ME01,

Enter the valid from and to date, vendor, purchasing organization, agreement created in STEP 3, and
MRP indicator as 2 = Record relevant to MRP. Sched. lines generated automatically. SAVE the record

STEP 5

RUN MRP.
Transaction is MD02.

Path: Logistics  Production  MRP  Planning  Single item, multi
level

Control. Parameter to be used for schedule lines is 2, This will ensure that requirement in the firm zone is
converted to schedule lines rest will be converted to planned order.

Next is the solution for splitting the requirement in two vendors.

step-6

The splitting of requirement will be handled using quota arrangement.

Following are the steps to be followed:

Step 1. Customizing settings

Transaction: OMI4 (Define Lot sizing procedures), Choose MRP Lot Size

Mark the Splitting quota.

The Splitting will enable the requirement to be split between two vendors. The following are the details of
the same.

Step 2. Change the Material Master

Change views

View to be changed is Purchasing

Input the Quota arr. Usage as 3 (MRP relevant).

Step 3. Create Info Records.

Transaction: ME11

Choose Subcontracting and create the info record.

Step 4. Maintain the Source List

Transaction: ME01

To add the next vendor

Step 5. Create Quota Arrangement

Transaction: MEQ1

Path: Logistics  Materials Management  Purchasing  Master Data
 Quota arrangement  Maintain

Input the material and plant and press enter.

Input the Valid to date and Min. qty splitting (If the requirement is greater than Min qty Splitting only
then the requirement will be split else it will be allocated to only one vendor based on the Quota
Enter the following details

Procurement type as F = External procurement

Special procurement as L = Subcontract

Vendors for which splitting is to take place.

Calculating the Quota Rating

The system assigns a quota rating to each source of supply. The quota rating is calculated as follows:

Quota-allocated quantity + Quota base quantity

= Quota rating

Quota

where

• Quota-allocated quantity

= Total quantity from all purchase requisitions, purchase orders, release orders, and scheduling agreement
schedules allocated to a given source of supply. (The quantities of quota-allocated planned orders are also
taken into account.)

• Quota base quantity

= Quantity used to control the quota arrangement when new sources of supply are included.

• Quota

= A number specifying which portion of a total requirement should be obtained from a certain source.

The source with the lowest quota rating represents the valid source, even if it has a quota rating of 0 (that
is, the quota-allocated quantity and the quota base quantity have the value 0). If more than one source of
supply has a quota rating of 0, the item with the highest quota is the valid source of supply.

According to the formula, the following applies: The higher the quota, the lower the quota rating and the
higher the likelihood that the relevant source will be determined as the valid source.

But in case of splitting SAP will not go on the basis of Quota it will purely split the requirement quantity
between two or more vendor on the basis of Quota %.

Step5. RUN MRP

Remember to choose the schedule lines control indicator to 2.

Please try this.