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Author's profile photo Kavitha Thangaraj

Simplified Sourcing in S/4 HANA


Valid source of supply can be maintained in various means like schedule agreement, contracts, purchase info records. In ECC, MRP determines source of supply referring to source list and quota arrangement. In S4 MRP live, selection of source is predefined where source list and quota arrangement usage in material master is not mandate. This document explains the predefined logic in selection of source of supply in S4 MRP Live run.

Simplified Sourcing Determination in S/4 HANA, MRP Live run

In general, MRP determines material requirement date, quantity and source of supply. Sequence of actions are determine material shortage, lot sizing and then source of supply.

In case of several source of supply, source is determined based on quota arrangements. If quota arrangement is not available and several source of supply exist for the same material, plant, quantity, and date, source determination gives preference to production versions over delivery schedules, delivery schedules over purchasing contracts, and purchasing contracts over purchasing info records. If sourcing selects a production version as source of supply, then the material receipt is going to be a planned order. If sourcing selects a purchasing info record or contracts, then the planned material receipt is going to be a purchase requisition. If sourcing selects a schedule agreement, then the planned material receipt is going to be a delivery schedules. (Refer SAP note: 2268069 – S4TWL – Simplified Sourcing)

Role of Source list :

  • Though source list is not mandate, if a source is maintained in source list with MRP indicator as ‘1’ or ‘2’, it has highest priority for MRP live.
  • Vendor, contracts or Schedule agreement can be blocked for MRP in source list for a period

Technical details

When source of supply like schedule agreement, contracts and info records are maintained, a CDS view (table view: CDS_M_PUR_SOS_B) is created and field: PRIORITY is updated with priority for selection of source in MRP live run. In MRP live run will select the appropriate source of supply based on priority number 1 to 12. (Refer SAP note: 2614920 – Sourcing priority during MRP in S/4 HANA system)


In S/4HANA, the purpose of source list in source determination are last priority for selection of source and exclusively used to blocking the sources.







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      Author's profile photo Jasper Buis
      Jasper Buis

      Nice clear overview Kavitha, thanks for sharing!

      Author's profile photo Mahesh Patel
      Mahesh Patel

      Nice writeup. Thanks for sharing.

      I am working thru a drop-ship (3rd party) scenario, where sales order creates P.Reqs. I have plant# in the sales order line item and have maintained an info record with for a specific supplier. However, this material could be sourced from a different supplier if the plant# is different, so I have multiple info records, but only one for a given plant#. My issue is that P.Reqs can't find a source of supply. When I edit the P.Req, I see all of the other info records/contracts etc and I have to manually pick the correct PIR. So it seems like Plant # is not at all considered in the source determination. Any thoughts on how to use Plant# in source determination? I might have to work up an enhancement, but wanted to check if a standard solution exists. thanks in advance!

      Author's profile photo Nick Hurkmans
      Nick Hurkmans

      Thank you for the useful blog, Kavitha.


      Below blog and Youtube video are also very informative!