Use
You use a
Quota Arrangement in SAP APO to apportion product quantities among source or destination locations according to your wishes. You can specify weightings for partner locations, external procurement, and in-house production, according to which the quantities are to be apportioned.There are two different quota arrangement types:
You use an incoming quota arrangement to specify which proportion of a requirement is to be procured from which source location (e.g. vendor).
You use an outgoing quota arrangement to determine which proportion of the receipts is to be delivered onward to which destination location (e.g. one of your distribution centers).

How quota arrangement items are planned depends on whether or not you have specified (in the product master) that the quota arrangement heuristic is to be used to plan the product:
Quota Arrangement Heuristic
If you have defined the quota arrangement heuristic for the product, the apportionment of requirements among the quota arrangement items takes place when the requirements are analyzed. All quota arrangement items are planned separately according to the item heuristic you have defined in the Supply Chain Engineer. By planning each quota arrangement item separately, the system is able to take planning parameters such as lot-sizing procedures, procurement lead times, rounding profiles, or the vendor calendars of the various sources of supply into account.
Prerequisites
Quota Arrangement Items.
Standard Planning Procedure 4 on the PP/DS tab page of the product master.
Allocation Quota Arrangement
If you have not defined a quota arrangement heuristic for the product, the system will first form lots and then apportion them among the various vendors and/or plants in the course of the source determination process. You are therefore not able to take the above mentioned planning parameters into account using this method. If you want to plan the quota arrangement individually, you must therefore define the quota arrangement heuristic at product level.
Prerequisites
You have defined the
Quota Arrangement Header and
Quota Arrangement Items for the relevant vendors and/or plants in the Supply Chain Engineer.