Supply source determination

what is meaning of supply source determination, how it works purchase price determinations sequence used in the calculation of sales price, Please explain me what is source determination and purchase price dterminatiion type whcih are used in sales price calculation.

Hi Madhuri,
The sales price calculation function contains three subfunctions:
       1.      Determining the purchase price (purchase price determination)
       2.      Determining the sales price (sales price determination)
       3.      Determining the margin, or the actual markup
So your question is about the first step i.e Purchase Price Determination
To determine the sales price of an article which is determined based on the purchase price of the articles ( markup), the purchase price of the article needs to be determined first.
Supply Source Determination
An article in a store can be procured from a DC or from a vendor. This is differentiated by using the "Supply source" which is in the Article Master - Store (or DC) view ( Field Name: MARC-BWSCL).
So when you enter a sales organisation and distribution channel in the VKP5 screen for Sales price calculation, the supply source needs to be found out first to find who is the supplier. The site for determining the supply source is based on the reference site that is assigned for every distribution chain ( Sales org + Dist Channel) and the Sales OrgDist ChannelPrice List
This configuration of assigning the reference site to the dist chain is in
Logistics general -> Retail Pricing ->Sales Price Calculation ->Assign Pricing Type/Reference Site to Organisation level
So once the reference site is determined the supply source of the article can be determined from that store. Then once it is done using the source determination of checking the
1. source list for the store/DC,
2. Supply Region
3. Regular vendor
etc then vendor will be identified ( the sequence may not be correct). Please refer to the below link for more detail on the source determination.
http://help.sap.com/saphelp_erp60_sp/helpdata/en/32/fa424287cf9923e10000000a155106/frameset.htm
Once this is done, now we know the cost of the article ( PB00) but we need to find the purchace schema.
The standard purchase price determination sequence is based on the Vendor Schema Group + Purchase Organisation ( Porg Schema group ) if its an external vendor else the STO schema will be determined. Once the Net purchase price is determined through the purchase price, this is used for determination of the sales price using the another process of sales price determination sequence.
Hope this clarifies your query.
Regards
Prabhu

Similar Messages

Retail:doubt in supply source determination

Hi experts,
I know in supply source determination if supply source is vendor it will look for info record and if the supply source is supplying site then it will look for Site (DC).But my doubt is on which basis it will search for "vendor" and for "supplying site (DC) " in "supply source determination" topic.Where we actually do this.and find this topic.Hope it is clear and simple and expecting clear and simple answer for you.Thanks in advance.
Regards
Sandhya

Hi Sandhya,
The standard deifinition goes like this...
Supply source determination is part of purchase price determination and therefore
takes place at the beginning of the sales price calculation. It is used to determine the
vendors (sources of supply) for the selected articles and organizational levels. It uses
the system settings to do this. Both external and internal vendors (distribution centers)
can be sources of supply. If purchase price determination type A (standard) is used,
this price determination is performed by means of a purchase price calculation schema
in the case of an external vendor and by means of a pricing procedure in the case of
an internal vendor
NOTE :If multiple vendors are found for an artricle,system looks for the regular vendor flag,and then source list requirement,and then supplying region is checked for that particular article.
You can also refer to the following link for more information :
http://help.sap.com/erp2005_ehp_04/helpdata/EN/4c/420d29470a11d1894a0000e8323352/frameset.htm
Hope it helps.
Best Regards,
Aram.

Source determination,Quota Arrangement Process

Hi,
Plz tell me how to maintain Source determination,Quota Arrangement.step by step

Dear,
QUOTA ARRANGEMENTS
If a quota arrangement exists for a material, it has the highest priority during source determination. Like source list, the quota arrangement facilitates the administration of sources of supply at plant level.
If you procure a material from different suppliers, you can assign a quota to each individual supplier. A quota arrangement applies to a certain period and specifies how the receipts should be distributed among each source of supply.
If a quota arrangement exists, this does not mean that the quantity of a single manually created purchase requisition is automatically apportioned among different sources. In such case, the entire quantity of the requisition is assigned to one source u2013 the source that is next in line receive the relevant order.
Before you can maintain a quota arrangement item with the procurement type external procurement, a source of supply (info record and / or outline agreement) must exists.
Create quota arrangement:
LOGISTICS u2013MATERIAL MANAGEMENT u2013 PURCHASING u2013 MASTER DATA u2013 QUOTA ARRANGEMNET u2013 MAINTAIN.
Specify number ranges for quota arrangement:
SAP IMG u2013 MATERIAL MANAGEMENT u2013 PURCHASING u2013 QUOTA ARRANGEMENT u2013 DEFINE NUMBER RANGES.
You must specify the business application for which quotation arrangement will be used, for example: in material planning or in purchase requisitions. You make this specification in QUOTA ARRANGEMENT USAGE filed, which is to be found in the plant-specific purchasing/materials planning data of the material master record.
Set quota arrangement usage indicator:
SAP IMG u2013 MATERIALS MANAGEMENT u2013 PURCHASING u2013 QUOTA ARRANGEMENT u2013 DEFINE QUOTA ARRANGEMENT USAGE.
System assign quota rating to each source by calculation as u2013 Quota rating = (quota allocated quantity + quota base quantity / quota).
ADDITIONAL ASPECTS OF SUPPLY SOURCE DETERMINATION
Quota arrangements also can be source of supply.
Quota arrangements for material requirements arising over a certain period divided up among different sources on basis of quota. Quota arrangements determine which source of supply is automatically assigned to a purchase requisition.
SOURCE DETERMINATION
The purpose of the source determination process is to automatically assign a source of supply to a purchase requisition, if source determination indicator set in the requisition header, the system searches for possible sources of supply for all the items of the requisition. Quota arrangements also can be source of supply.
In source list specify a preferred source as fixed for a certain period, the system suggest just only this source, even if other potential sources exists.
Quota arrangements for material requirements arising over a certain period divided up among different sources on basis of quota. Quota arrangements determine which source of supply is automatically assigned to a purchase requisition.
Source list record consists of the following:
1.Validity period u2013 Period of validity
2.Key source data u2013 Number of vendor and responsible purchasing organization or number and item of outline agreement.
3.Fixed source u2013 Within a validity period not more than one source should be flagged as fixed.
4.Procurement plant u2013 if the materials can be procured from a plant or another point within your firm, enter the plant number in PPl field and leave the field for the vendor number empty.
5.Blocked source u2013 To block a source. If you set Blocked indicator and enter only one validity period, the material is excluded from external procurement; that is, it cannot be ordered during this period.
6.Material requirements planning - You use MRP indicator to determine whether an automatic source determination process is carried out during the requirements planning run. The appropriate source is then automatically assigned to a purchase requisition, or scheduling agreement delivery schedule lines can be generated directly via planning run.
If an attempt is made to order a material subject to a source list requirement from a source that is not included in the source list, the standard system issues an error message with the text: Source not included in list despite source list requirement. You can change this to warning message.
If source list requirement defined for a plant, all materials in the plant level must be maintained with source list before procurement.
Analyze source list:
LOGISTICS u2013 MATERIAL MANAGEMNET u2013 PURCHASING u2013 MASTER DATA u2013 SOURCE LIST u2013 FOLLOW ON FUNCTIONS u2013 ANALYSE.
Define source list requirement at plant level:
SAP IMG u2013 MM u2013 PURCHSING u2013 SOURCE LIST u2013 DEFINE SOURCE LIST AT PLANT LEVEL.
Source lists can be created:
-Manually.
-Create from within an outline agreement u2013 on outline agreement overview screen, select an item for which you wish to enter source list record and choose ITEM u2013 MAINTAIN SOURCE LIST.
-Creation from with an info record u2013 you can enter vendor in the source list when creating or changing a purchasing info record. Choose EXTRAS u2013 SOURCE LIST. If the info record valid for entire purchase organization, you can create the source list for all plants of the organization in question. Choose the plant via GOTO u2013 PLANT.
-Automatic u2013 can generate by system automatically.
Create source list manually:
LOGISTICS u2013 MATERIAL MANAGEMENT u2013 PURCHASING u2013 MASTER DATA u2013 SOURCE LIST u2013 MAINTAIN/DISPLAY.
Generate source list automatically:
LOGISTICS u2013 MATERIAL MANAGEMENT u2013 PURCHASING u2013 MASTER DATA u2013 SOURCE LIST u2013 FOLOW ON FUNCTIONS u2013 GENERATE.
Regards,
Syed Hussain

Source Determination in PO !

Hi all,
Why is there no source-determination checkbox when I create PO (tcode:ME21N)? This I am talking about the case when I am creating the PO without any reference to any other document.
Suppose while creating a PO, if I want the system to choose the vendor, how do I go about it?
Regards,
Chiranjib

Hi,
Supply source determination is the facility which has been given during the creation of PR. if you have a valid source list or a info record or a aggrement or a quota arrangement , system will assign a valid source to the document and which will make easy to create a PO.But however you can also create through ME25 provided if any of the above said master data is available.
Regards,

Automatic determination of supply sources

Hi,
Automatic determination of supply sources
During the sourcing process, the system selects all sources of supply that are assigned to the product category of a contract item or a supplier list entry. If no source of supply can be selected from the product category, the next superordinate product category level in the product category hierarchy is used.
Can somebody throw some light on last statement:
"If no source of supply can be selected from the product category, the next superordinate product category level in the product category hierarchy is used."
Thanks And Regards,
KK.

KK. Please clarify again.
do you have hierarchy contracts or you uploaded locally a product category hierarchy in srm server ?
always system assign appropriate product category w.r.t sc free text item product category if only one product category contract or system shows to the requestor what are the appropriate contracts contracts applicable to the sc produc category.
if the system dont propose it, it is not relavant to sc product category.
or if you want assign any contract means you can give control to buyer in the cockpit or you can forcily assign any contract by enhancement.
muthu

Source determination not happening during PR creation from Planned order

Hi Experts
We have set up source determination and we have created a sourcelist of material and a vendor is fixed, there is a inforecord alos maintined,
I am trying to convert a planned order from MD04 to a purchase requisition, the source is not being assigned for the PR, I am alos getting an information saying that 'the material is defined for inhouse production'
secondly if I click the 'Assign Source of Supply', then I am getting an error 'not possible to assign a source of supply'.
The material is a finished material 'FERT' with procurement key 'X' so in MRP an planned order gets generated for converting a PR or a production order.
Note - I was doing this effectively in a differnt client without any proble. I am unable to find what I am missing, please sugest.

Nagaraj Chaganti wrote:
Thank you everyone for the suggestions, The issue is resolved by testing with a new material with tproper master data. Basically the problem occured when some user created additional inforecord for the same P,Org hence there was no automatic source detemination happening.
>
> Bye with regards.
a second info record may explain that AUTOMATIC source determination ddid not work but it does not explain the error messagees you described earlier.

URGENT PLEASE HELP - Source determination in Limits Carts not working

Dear all,
We have implemented SRM 4 on Server 5.0 and ECC 5 backend.
We have in our environment service masters that have been catalogued and linked to Contracts. When one raises a cart and selects one on these catalogue service items, a backend PO correctly creates and references the contract as specified in the catalog.
The problem we have discovered that if we raise a Limits order and specify the material group stipulated in the contract for a service, source determination fails to "pick up" this contract line. We are forced to enter a supplier all the time!
Also if we raise a text service line and select from "internal Goods/Services" a Service Master record and add it tothe cart, surce determination also does not pick up the R3 contract/line that matched this service. This means that when POs are created in the backend, they are not referencing any contract (no call-off)
Why is this happening? How come catalogue items linked to a service masters and contracts work and correctly and a Limits order do not?
Please help, we need to resolve this issue today.
Thanks,
Grace.

Hi Grace,
The contracts that are created in SRM can only be refered as Source of supplies while creating shopping carts if your are working in Extended Classic scenario.
In case you want to refer the back end contracts, Info. records for creating shopping carts you have to implement classic scenario.
The standard SRM does not provide the functionality you needed where as if you want to use back end contracts for a particular product category you can implement "Controlled Extended Classic Scenario BADI " which makes the classic scenario active for that product category, there by a back end contract can be referred for that product category when ever a shopping cart is made.
Hope this makes you clear. Clarifications are welcome.
Award points for suitable replies.
Rgds,
Teja

Need help in source determination.

Hi
There is a source list maintained for a material and plant comibination. This list contains the Agrements along with the vendors.
Now the quesion is how the system will use this for source determination?
IS there any T-Code to analyze the source list and find a appropriate vendor?
Any other records, documents which system will consider while source determination.
Your help will be highly appreciated.
Thanks in Advance
Nageswara.

Dear Nageswara,
First understand the importance of sorce list. it is used to restrict the number of suppliers. It means that if you don't maintain the supplier in the source list you can not procure the material form that supplier if you have activated the source list for that material .
your source of supplier can be anything i.e. it may be external vendor or another plant or outline aggrements.
while creating the PR or PO system will ask for source of supply. here you can choose any of the supplier which is maintained in the source list.
There is T-code as ME01 for maintaing the source list.
Thanks and Regards
vijay Moundekar

Wrong UOM in shopping cart with a contract as a supply source

Hi experts,
We are in SRM 7.0 classic scenario with ECC 6.0. SRM are creating SC with backend contract as source of supply.
1. We select a material from a catalog (MDM) with UOM in material master with value "G"
2. In details /position in the SC, in "supply of source" tag has a contract as a supply of source with UOM "ENV"
3. so the contract has different UOM of the material
4. The SC has taken the UOM from the material (material master ) instead of the contract.
The user cant change the supply of source and he cant change the UOM that is taken the SC
It´s behaviour not always is given. I mean that for some colleagues are determined correctly UOM in the SC and not others when we try to test the incident
Any suggestion?
Thanks in advance.
Best Regards,
Mar

HI Maria
can you check in the Badi BBP_SOS_BADI in the method BBP_SOS_PD_CHECK and BBP_SOS_CHECK by debugging as to why there is a difference..
Ideally AFAIK .. it should pick up UOM from Contract instead of picking up from Material master ..
For the users who are picking up from Material master compare the roles ..
Also please advise what is the desired functionality .. you want it to be picked from contract or Material master ?
Also try making the changes in SOS _badi and provide feedback ..
Maybe it could alos relate to the default values of the requestor or for some pur org ..or item level Can you check the setting in SPRO-MM-External service management-Source Determination and Default Values
regards
Vinita

Source Determination for Service PR

Hi Experts,
One of our clients requirement is in their Procurement process, they want to create Service PR (material group, text) with Item category D and Acc Assignment as K. They want the system to determine the Source of supply automatically. When we check the source determination check box- but the system is unable to determine the source.
They want to remove manual intervention. If the source is determined in PR, it will be converted to PO. Please assist.
Thank you,
Surendra

Dear Surendra,
This is to let you know that, there is no provision to maintain source list for services as we do for materials.
Suggestion A:
Since there is no provision to maintain the source list for services, follow the steps, which are explained by AKPT M . Sure it would help you, if not check out the other two suggestions, given below.
Suggestion B:
If you would like to have automatic procurement process as material procurement, better follow the below steps;
Create a material with material type DIEN
Maintain the source list
Create a PO for the service material
Create MIGO document
Note: As you are procuring services through material master, there is no involvement of Service Entry Sheet and the services will be directly posted to consumption account.
Suggestion C:
Try with 'Standard Service Catalog - ML01
Thanks & Regards,
Narayana N

Sourcing Determination for Automatic Bid invitation.

Helo all,
We have a few issues with Sourcing Determination.
SRM 4.0/EBP 5.0 SP 08
We set the sourcing for all
Product categories - Automatic Bid invitaion for items without source of supply in the Table BBPV_SRC_DETERMINE
It was working fine but all of a sudden it moves all the requirements into the Sourcing cockpit instead of creating a Bid inviation.
Things done after this set up..
Product Categories were replicated again into the SRM system.
All settings for product categories were deleted and entered again. (Ex PPOMA_BBP, Define Bckend sys for prd cat) etc.
Has anyone run into issues like this before.

Hi Claudia,
I have created the contact person for bidder through the web only. There shouldnt be any problem in creating BP or contact person as the bid invitation was sent to bidder sucessfully, even i could create contract in backend after the bids receieved from the same bidder.only some times this error is flashed. ( all atributes, master data used is one and the same).
Now could u please tell me how exactly the bid invitaion is sent to bidder. any FM, prog??? which i should check out??
About creating bidder, I have created the bidder after replicating that vendor from backend. Then for the bidder i have created employee as a contact person through web ( Manage business partner) with bidder role assigned.
thanx please.
Regards,
Vivek

Source Determination for contracts via ME25

Hi All,
We are using ME25 to create PO's. During source determination, a
contract that is valid on the delivery date but not on the current date
is not suggested as a possible source of supply though it has been
maintained in the source list.
We know that this is programmed this way.Check is always carried on the
basis of current date. Though the delivery date falls within the
contract validity date, the system does not suggest the contract as a
source since the validity of that contract has not yet started or it is
not matching with the current date.
But we want the system to suggest the contracts as a source of supply,
though the validity of the contract has not yet started. we want the
system to suggest the contracts which are not valid on current date(but
valid on a particular delivery date) also.
SAP notes 44368 and 427864 suggest that this can be achieved.The note
427864 also tells that "selection with a date other than the current
date could lead to problems (for example in case of MRP runs).With the
corrections of Note 44368 you can solve the problem".
It also says as below:
"The attached correction instruction solves the problem described in
this note. However, these corrections might lead to other problems.
Therefore these corrections are not implemented in the standard system."
It says it might lead to other problems also. But it didn't mention the
exact problems.It would be great if you can list out the MRP run and
other problems and suggest us.
We want this functionality. One more note 116464 is also related to
this. Suggest us which are the notes to be applied. We are currently
using SAP 4.7 Version.
Thanks in advance.
Warm regards,
Shankar Goud.

Hi,
I am not sure that there will be any problems by changing this if you do it the way that the note indicates. I would suggest that SAP are quite right to effectively say "We have designed our system to use the current date, if you want to use anything else then you MAY have problems" (because effectively this is what they are saying).
It is a heavily integrated system and changes like this can cause unforeseen problems, but if you are going to test it thoroughly then it SHOULD be OK.
I would agree with SAP in that it is far better to NOT make this change, but if you really need to do this as part of your business process then you may have no other choice.
Have you thought of bringing the date of the contracts forward to the current date when they are created and controlling their use by setting the source list dates to the dates you want them to be used? This may not work and it too is a scary change but it might be worth having a play with it in your sandbox system (also set the source list as mandatory on the material master if you want to stop manual POs from being allocated too early).
So I guess I am saying go ahead if you have to but beware the warnings (even though they may be unfounded).
Steve B

Source determination of agreement which used SC vendor.

Need to deliver to vendor B when purchasing one item on agreement 4601001470 from vendor A.
The user tried ticking the SC vendor checkbox on the delivery tab for each item in the agreement and also entered vendor B. This did not work. When the tickbox is checked and SC vendor number entered the agreement details do not autopopulate into the requisition. It is also then not possible to manually assign the source of supply in the requisition. we can't get source determination to work on this material, even though the contract and source list looks OK.
If anybody have solution,Please help me.Thanks.

Have you done PIR on Subcontract Info category for Vendor B.?
Check Source list for Vendor B maintiaed or not.
Try 1 : Give the Vendor B ( Subcontractor ) In te out line document by following the path
Seelct the line in O.A go to Item -
> more function -
> Delivery Address, you will get the pop up, where you can maintain the Subcontact vendor with tick.
Try 2 : By fixing the vendor in SOuce list
Let me know if still problem is there.?

How can i turn on source determination check box by default in p.req

heloo
how can i turn on source determination check box on in p.req mean whenever i use me51n in pop up sceen it should already be checked.
second how can i creat p.o form p.req automatilaly and then send it to edi.
what i do't wana use me59n iwant system once i create p.req and it has valid source just create p,o and send it to vendor.
thanks

Hi
You can switch the Source determination indicator on whenever you enter..
1) Go to Personal settings in ME51N Screen>select default Values tab>if you do not find Source determination field then click More fields move the field to line 1. Now you check this field and save it.
2) To create PO from PR make sure you have valid source of supply assigned to PR and Auto PO checked in VMR & MMR, Inforecord with Valid condition exist. Run the tcode ME59N and the system will convert the PO from PR.
3) To send the PO to Vendor via EDI you need to set up EDI with the help of Abaper by using message determination procedure and EDI/ALE setting.
Hope it helps
Karthik

LMEQR001- Source Determination Exit, Sample Code

Dear Experts,
We have a situation where the source determination should be assigned automatically in the Requisition. Currently SAP Standard functionality works only if user enters all the information correctly. If user changes the material number( A to B), it does not determine the source of supply automatically.
I believe, exit LMEQR001 can be used to fulfill the above requirements. Appreciate, if any one can provide the sample code to achieve the same.
Points will be rewarded
Looking forward to hear positive response from your end.
Regards
Karun

Hmmmm.... weeelll, Ah'd say you got yerself some code there. Struse bob, a genuyne bit o' code! Yep...
Okaaay.... naw, you got some o' dose, what'ya callems? Uhh... class! Yeh, you got a class, dere... 'mazin!
And... if I really luke hard at it... ummm... nah.
Hold it! Ah wuz raht! You got some of 'em method diddly things! Struse goodness! how about that!
Well, congraaaadulations, pal! You sure got a good start, there!
Keep it up, pardner!

Supply source determination

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