Sourcing Administration 

Purpose

This scenario describes how sources of supply are determined and managed for materials and external services.

The following R/3 components are used:

SAP Component

Functions

Purchasing

Assign and process purchase requisitions,
Create and transmit RFQs,
Compare and select quotations,
Enter into contracts and scheduling agreements with vendors

Prerequisites

Process Flow

Vendor

Before you determine a source of supply, a one-time vendor master record must exist for the vendor.

Request for Quotation/Quotation

  1. You issue a request for quotation in the following situations:

– There are no valid sources of supply for stock materials.

– Quotations are to be requested for material deliveries at regular intervals

You create a request for quotation with or without reference to a purchase requisition.
  1. You enter the quotations you receive as a result of the requests for quotations issued. You select the source of supply by comparing the prices in the quotations.

Contract/Scheduling Agreement

  1. You can procure the storage material by placing a purchase order referring to the quotation you selected. You can also create a contract or a scheduling agreement referring to the quotation.
  2. If an MRP controller discovers that a material is in particularly high demand, he or she can enter an outline agreement requisition, asking the buyer to enter into a contract or a scheduling agreement with a particular vendor.