What is quota arrangement in SAP MM-PUR - Purchasing?

SAP Term: quota arrangement

• Component: MM-PUR

• Component Name: Purchasing

• Description: A mechanism enabling the system to compute which source of supply to assign to a requirement for a material. The quota arrangement facilitates the determination of the applicable sources of supply for a purchase requisition at a certain time. Setting quotas permits the automatic apportionment of a total material requirement over a period to different sources. A quota arrangement consists of quota arrangement records identifying the source such as a vendor or an internal plant, the validity period, and the quota.

Smart SAP Assistant

• Key Concepts: 
  Quota Arrangement is a feature in SAP MM-PUR Purchasing that allows users to set up a predetermined quantity of goods or services to be purchased from a specific vendor. This arrangement is used to ensure that the vendor is able to meet the customer’s needs in a timely manner and at a competitive price. 
  
  How to use it: 
  To set up a Quota Arrangement, users must first create a contract with the vendor. This contract should include the quantity of goods or services to be purchased, the price, and any other relevant details. Once the contract is created, users can then create a Quota Arrangement in SAP MM-PUR Purchasing. This will allow them to track the quantity of goods or services purchased from the vendor and ensure that they are meeting their contractual obligations. 
  
  Tips & Tricks: 
  When setting up a Quota Arrangement, it is important to ensure that all relevant details are included in the contract. This will help ensure that the vendor is able to meet the customer’s needs in a timely manner and at a competitive price. Additionally, it is important to regularly review the Quota Arrangement to ensure that it is still meeting the customer’s needs. 
  
  Related Information: 
  For more information on Quota Arrangements in SAP MM-PUR Purchasing, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide detailed instructions on how to set up and manage Quota Arrangements in SAP MM-PUR Purchasing.