What is AFS quota in SAP IS-AFS-MM - Materials Management?

SAP Term: AFS quota

• Component: IS-AFS-MM

• Component Name: Materials Management

• Description: Definition of a restriction of the import of certain products from a third country. The assignment of quota is material-specific. If the quota check is activated, the requirement quantities of purchase requisitions, purchase orders and the source allocation are checked against quotas. This can possibly lead to a restriction of the vendor selection.

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• Key Concepts: 
  AFS quota is a feature of the SAP IS-AFS-MM Materials Management component. It is used to limit the amount of goods that can be ordered from a vendor in a given period of time. This helps to ensure that the vendor does not exceed their capacity and that the customer does not over-order. 
  
  How to use it: 
  In order to use AFS quota, the user must first set up a quota agreement with the vendor. This agreement will specify the maximum amount of goods that can be ordered in a given period of time. Once this agreement is in place, the user can then set up an AFS quota in SAP. This will limit the amount of goods that can be ordered from the vendor to the agreed upon amount. 
  
  Tips & Tricks: 
  It is important to keep track of AFS quotas as they can easily be exceeded if not monitored closely. It is also important to ensure that the quota agreement is up-to-date and reflects any changes in the vendor’s capacity or customer’s needs. 
  
  Related Information: 
  For more information on AFS quotas, please refer to SAP Help documentation or contact your local SAP support team.