What is quota in SAP SRD-SRM-SC - SRM-Sourcing and Contracting?

SAP Term: quota

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: The proportional share of a product to be ordered from each supplier in a selected group.

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• Key Concepts: 
  A quota in SAP SRM-Sourcing and Contracting is a limit set on the amount of goods or services that can be purchased from a particular supplier. It is used to ensure that the supplier does not exceed the agreed-upon amount of goods or services. Quotas are also used to control the cost of goods and services, as well as to ensure that the supplier meets the quality standards set by the company. 
  
  How to use it: 
  In SAP SRM-Sourcing and Contracting, quotas can be set up for each supplier. The quota can be set up for a specific period of time, such as a month or a year, or it can be set up for an indefinite period of time. The quota can also be set up for a specific amount of goods or services, or it can be set up for an unlimited amount. Once the quota is set up, it will be enforced by SAP SRM-Sourcing and Contracting. 
  
  Tips & Tricks: 
  When setting up a quota in SAP SRM-Sourcing and Contracting, it is important to consider the needs of the company and the supplier. It is also important to consider the cost of goods and services, as well as the quality standards that must be met. Additionally, it is important to consider any potential risks associated with exceeding the quota. 
  
  Related Information: 
  In addition to setting up quotas in SAP SRM-Sourcing and Contracting, companies can also use other tools such as contracts and purchase orders to manage their suppliers. Additionally, companies can use analytics tools to monitor their suppliers’ performance and ensure that they are meeting their obligations.