Source Determination 


With respect to new procurement transactions, you initially wish to fall back on data that is already available in the system. Issuing a one-time purchase order or determining a new source through the more time-consuming process of requesting and processing quotations are functions that will often only take place after you have discovered that there is no suitable source for a certain material or service in the system.

As a rule, a productive system will contain a large number of vendors and outline purchase agreements representing external sources of supply (external procurement), as well as plants belonging to your firm representing internal sources of supply (internal procurement).

The source determination facility helps you to find the most suitable source for a certain requirement from the large volume of data that is available, i.e. it suggests a suitable outline agreement or vendor for ordering purposes.


The following objects represent the basic data upon which the source determination process for requisitions and purchase orders depends:


The system determines the source of supply of a requested material on the basis of the following factors (in the order shown):

  1. Quota arrangement
    The system first determines whether a quota arrangement within whose validity period the delivery date in the requisition falls exists for the material.
  2. If a quota arrangement exists, the system determines the vendor from whom the material is to be procured according to the quotas assigned to the vendors and then suggests the source.

    If no source can be determined this way, the system checks the source list.

  3. Source list
    The system determines whether an entry in the source list within whose validity period the delivery date of the requisition falls exists for the material. The source in question may be a fixed vendor or an outline agreement (contract or scheduling agreement).
  4. If the source list contains a unique source, the requisition is assigned to that source.

    If several sources are found, a box appears for selection purposes.

    If no source could be determined, the existing outline agreements and info records are examined.

  5. Outline agreement and info record
    The system searches for contracts, scheduling agreements, and info records for the material and suggests these.

(If info records with more than one purchasing organization exist, all info records of the purchasing organization(s) that is/are responsible for procurement for the requesting plant are also suggested.)

If several outline agreements and perhaps info records exist, all possible sources are offered for selection in a box.

When an info record is found, the following two additional checks are carried out:

Source Determination in the Background:

If you carry out the source determination process online and the system finds several possible sources, a box appears with the sourcing suggestions. From these, you can choose and assign one source.

If you carry out the source determination process in the background, the system must determine a unique source to enable a purchase order to subsequently be generated automatically.

If several sources are found in the third step, the system gives the outline agreement precedence over the info record in order to arrive at a unique source.

If two outline agreements are found, the system checks whether one of them is with a regular vendor. If so, this agreement is assigned as the unique source. If not, the system does not assign a source at all. The source must then be assigned manually.