The below information is explaining the system logic on how the source is defined and determined.
Overview
1.General Information
2.Source Determination Hierarchy
3.Manual vs Automatic Source determination
1. General Information
The purpose of Source
Determination is to make it possible for a Purchase Requisition to be assigned
a Source of Supply.
If a possible source for a requested
material exists in the system, we can:
Ø let the system find and
assign the source to the requisition automatically
or
Ø select from a list of
possible sources during manual Purchase Requisition creation
in transaction
ME51N .
2. Source Determination Hierarchy
The system assigns
requisitions and purchase orders on the basis of the following sourcing
information:
The Source determination hierarchy is as follows:
§ Quota
arrangement
The quota arrangement
specifies the portion of the total requirement of a material that is to be
assigned to a specific source over a certain period.
The system assigns a quota
rating to each source of supply. The quota rating is calculated as follows:
Quota rating = QuotaAllocatedQuantity + QuotaBaseQuantity/Quota
-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.
· Source
List
In the source list, you
specify which source of supply is valid for a certain period. A
"source" may be a vendor, a supplying plant, an outline agreement, or
an info record.. You can define a preferred source of a material (for
example, a vendor) as "fixed". The system will then suggest this
source from the source list.
· Outline
Agreement
Existing outline agreements
represent possible sources for a material. If a requisition is assigned to an
outline agreement, the system can generate a release order or scheduling
agreement delivery schedule on the basis of the terms and conditions of the
outline agreement.
· Info
record
If a purchasing info record
exists for the requested material, it also represents a possible source of
supply. The prices and conditions in the info record are suggested when you
create an order with reference to the assigned requisition.
Regular
vendor flag in Info record
Specifies that the material
is to be procured from this vendor at client level, i.e. for the entire
corporate group.
Ø if you set this indicator,
the regular vendor is suggested as the only source.
Ø If you wish to work with the
source determination facility for purchasing documents, it makes sense not to
set the indicator so that the system suggests all available sources, not just
the regular vendor.
Ø If you try to enter a
different vendor than the regular vendor in the source list or quota
arrangement, the system will issue a warning message.
Ø If the regular vendor should
be considered by the system there must also be a flag set in the customizing
(Purchasing -> Source Determination -> Define Regular Vendor).
Important Note : Once a valid
Source of Supply is found the system will stop searching. In the
colde (Field Erfolg = X where Erfolg is the German for Success).
3. Manual vs Automatic Source determination
Purchase Requisition
Creation Indicator (EBAN-ESTKZ) determines the Source Hierarchy. This is
checked in the Purchase Requisition.
Path: ME52/3N -> Select
Item - GoTo – Statistics – General Administrative data – Creation Indicator
· Manual
Source Determination
Creation Indicator: R
Quota
Arrangement
Source
List
Outline
Agreement (List Proposed)
Info
Record
(List Proposed)
Regular Vendor
· Automatic
Source Determination
MRP, SD, PP, PS etc..
Creation Indicators B, V, F
Quota
Arrangement and Source list only!
The required prerequisites
for the automatic source determination in the requirements planning are as
follows:
Ø A valid source list entry
for this material
Ø If the source list
contains more than one valid entry, NONE of these entries is taken into account
up to and including Release 4.0B.
Ø The 'Source list usage in
materials planning and control' indicator must be set to '1' or '2' ('2' if
delivery schedules are meant to be generated).
Ø If you have an
outline agreement with special procurement (for example, subcontracting or
consignment), you must have entered the corresponding special procurement key
in the material master of the corresponding material.
Exceptions
to the Automatic Source Determination rule:
Please
use the above as the general rule for Automatic Source determination, but for
SD, PP, and PS there is a special case.
Ø If a Quota Arrangement or
Source List is not found then the system will search for an Outline Agreement.
Ø only if one Outline
Agreement exists will it be set as a Source of Supply, if more than one is
found then Source Determination fails.
Ø If no single Outline
Agreement is found the system searches for a single Info Record.
Ø if more are found Source
Determination fails as it can not choose between them.
Ø This is considered a
special case as it is very rare for a single Outline Agreement or Info Record
to exist for a material, so generally the Source Determination will stop after
Quota Arrangement and Source List.
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