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The purpose of this WIKI is to explain to implement the source determination for a planned order or purchase requisition using a quota arrangement.


This WIKI will explain how to activate the automatic source of supply determination for external procurement(vendor selection) during the MRP run using a quota arrangement. It will also explain the most common causes for problems in this area and how to resolve such problems.


The information from this WIKI is not relevant for S/4 HANA, since the source determination logic was simplified. Refer to Note 2268069 - "S4TWL - Simplified Sourcing" for more information about the Simplified Sourcing for S/4 HANA.

Quota arrangement:

A quota arrangement can be also used for the source determination on the MRP run and it is generally used when it is necessary to split the procurement between two or more vendors.

The quota arrangement is created on transaction MEQ1 and it provides more options than the source list, such as a quota, a maximum quantity or a minimum/maximum lot size for each source of supply.


After the creation of the quota arrangement, a very important step to have it considered during the MRP, is to define a proper value for the field Quota Arrangement Usage (MARC-USEQU) on the material master.

If the quota arrangement is correctly selected by MRP, the replenishment proposals will be directed to the different vendors, according to the percentage defined on the quota arrangement.

Frequent issues on the source determination using a quota arrangement:

A quota arrangement is not considered by MRP:

The most frequent causes for this issue are described on the following KBA:

1508647 - MRP does not consider the quota arrangement

 Quota arrangement is not selected on an MRP area:

For design reasons, MRP does not consider quota arrangements under MRP areas, however, the system behavior can be changed with the implementation of the following note:

505667 - Modification: Reversing Note 406672

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