MM / P2Pintermediate

MM Source Determination Part 3: Quota Arrangements — Configuration and Split Logic

Key takeaway

Split requirements among suppliers with quota arrangements: quota arrangement records (MEQ1), quota usage key in the material master, the quota rating formula, quota base quantity for new suppliers, splitting quotas in MRP, and monitoring allocated quantities.

Explanation

📌 KEY POINTS
✅ Quota arrangements (MEQ1) define percentage shares per supplier (or in-house) for a material/plant and period.
✅ The quota usage key (material MRP view) defines which documents update and use quotas.
✅ Quota rating = (quota allocated quantity + quota base quantity) / quota; the lowest rating gets the next requirement.
✅ Quota base quantity helps new suppliers catch up without distorting history.
⚠️ Without a quota usage key the arrangement is ignored.

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▶ WHERE WE ARE
Part 2 covered source lists. Now quotas.

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▶ 1. RECORDS

MEQ1: material, plant, validity, suppliers/procurement types, quotas, maximum quantities.

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▶ 2. QUOTA USAGE

Material master MRP view: quota arrangement usage key (which documents count).

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▶ 3. RATING LOGIC

Allocated quantity updated by PRs/POs/planned orders per usage.
Lowest quota rating selected.

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▶ 4. SPLITTING

Splitting quota lets one requirement be split across suppliers (MRP).

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▶ 5. MONITORING

Compare allocated vs target shares; adjust base quantities.

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▶ STEP BY STEP

Create a 60/40 quota arrangement.
Set quota usage key on the material.
Create requirements and check allocation.

✅ CHECKPOINT: after several PRs the allocated quantities approximate 60/40.

Code example

ABAP Code

===== STEP 1: MEQ1 =====Material R-100, plant 1000, valid 2026: supplier 300100 quota 60 | supplier 300200 quota 40 | base quantity 0 ===== STEP 2: rating example =====Allocated: A 600, B 300 → rating A = 600/60 = 10, B = 300/40 = 7.5 → next requirement to B ===== STEP 3: usage =====MRP view: quota arrangement usage key (e.g. includes PO, PR, scheduled agreement lines, MRP)

Real project scenario

A chemical manufacturer sourced a key raw material 70/30 but all orders went to one supplier. The material had no quota usage key, so the arrangement was never used. Setting the usage key and a base quantity for the second supplier restored the agreed split.

Common mistakes

Missing quota usage key.
Wrong base quantity for new suppliers.
Quotas without source list alignment.
Ignoring allocated quantity drift.
Too frequent changes.

Best practices

Set usage keys.
Use base quantities when adding suppliers.
Align with source lists and contracts.
Monitor shares monthly.
Change quotas at period boundaries.

Interview angle

Questions: "How does quota arrangement work?", "What is the quota rating?", "Why is a quota ignored?"
Strong answer: MEQ1 records, usage key, rating formula and lowest rating selection, base quantity, splitting, monitoring.

Practice this lesson

Quick check

1. A quota arrangement is maintained but ignored. Which setting is likely missing?

2. Supplier A has quota 60 with allocated 600, supplier B quota 40 with allocated 300. Who gets the next requirement?

3. Why use a quota base quantity when adding a new supplier?

Interview questions

1. Explain how quota arrangement integrates with MRP-driven procurement and how it interacts with purchasing master data to distribute demand across multiple vendors.

Answer it in your own words first, then compare.

2. A client uses source lists heavily tied to PP-driven MRP scheduling agreements across plants. During S/4HANA migration, what considerations are critical for migrating source list data without disrupting production planning?