Limit procured quantity per period using quota arrangement

Requirement placement

The business has a limit on the quantity of material that can be bought over a certain period of time.

So once that limit is reached the business does not want to generate in the defined period any further schedule lines or assigned requisitions.

How to full fill the requirement using SAP standard.

By using a functionality of the quota arrangement one can achieve this requirement.

In the quota arrangement the maximum release quantity, the number of periods and the period indicator is used.

Master data requirement

Material master

In the material master (purchasing or MRP 2 view) the quota arrangement needs to be activated,

For definition of the different quota arrangement keys please check the SAP help by setting the cursor in the field and pressing the F1 key.

Source list

In case you are doing procurement with scheduling agreements a source list has to be established so that MRP will generate schedule lines

Quota arrangement set-up

Once the quota arrangement key is set-up in the material master and the source list is defined we can look now at the quota arrangement set-up.

In this case the quota arrangement is defined till end of time (31.12.9999).

In our example here we are going to use a maximum of 1000 pcs over a period of 1 month.

Running MRP with above settings

Now that the master data settings are complete the attention can be turned to the running of the process.

For this purpose independent requirements where created (MD61) against a material and MRP is executed against this material.

The result in MD04 before MRP is as follows:

The result in MD04 after MRP is as follows:

This first screenshot is showing how MRP schedules the schedule lines in the month of July and August (till mid August).

Once one moves to the next month the a new batch of 1000 pieces can be ordered at the vendor until these are consumed and then the system will switch again to requisitions once the 1000 pieces limit is exceeded.

Conclusion

Using a quota arrangement one can limit the quantity that can be purchased in a defined period. This function helps a buyer/expediter see when requirements are going above the agreed quantity/capacity limit that was agreed with a vendor over a defined period.