Quota Arrangements 
You can use this function in both a manual process and an automated process as part of sourcing to generate purchase orders (POs). Quota arrangements allow you to define target percentages and distribute them between two or more purchasing contracts. A quota arrangement ensures that a contract is guaranteed both a minimum sales volume and a defined percentage of the total purchasing volume of a product category or product. A quota arrangement has the highest priority in the sourcing process.
During the validity period of a quota arrangement, there are two phases:
Fulfillment of guaranteed minimums
Before the system assigns contracts based on target percentages, the quota arrangement ensures that all guaranteed minimums of contracts participating in that quota arrangement are fulfilled. The sequence in which the guaranteed minimums are fulfilled is determined by the target percentages defined in the quota arrangement. Guaranteed minimums are defined in the contract.
Assignment of contracts based on target percentages
Once all of the guaranteed minimums of contracts participating in a quota arrangement have been fulfilled, the system continues to automatically assign contracts based on the target percentages defined in that quota arrangement. The winning contract is then determined by the relative difference between the actual release value and the target value of the quota arrangement.
Integration
You use this function in the following applications:
Contract Management
When you order a purchase order against a contract that is part of a quota arrangement, the system automatically updates the release values for each contract line item.
Sourcing
The system shows the winning contract for a quota arrangement in the manual sourcing process.
During manual sourcing, you can access quota arrangement details from the sourcing application.
Prerequisites
You can only create a quota arrangement if a product category or a product is saved in the system, and a contract is available so that you can assign target percentages for the quota arrangement.
Features
The system allows the source of supply to be selected automatically, based on the fulfillment of guaranteed minimums and target percentages defined in the quota arrangement.
A quota arrangement uses standard rules to determine the winning contract in the sourcing process. However, the system can redetermine a winning contract with your own logic if you implement a Business Add-In (BAdI) from Customizing. To access this BAdI in Customizing for SAP Supplier Relationship
Management, choose 
SRM Server 
Business Add-Ins (BAdIs) Sourcing Redetermination of the Contract to be Used (Quota Arrangement) 
.
Activities
To create a new arrangement, choose Strategic Purchasing Contract Management Create Documents Quota Arrangements .
You can change an existing quota arrangement, for example, by modifying the target percentages or adding further contracts (with or without a quota base quantity)
Caution
The contracts in a quota arrangement must have the same base unit of measure.
Note
In the Quota Base Quantity column, you can enter a nominal released quantity for contracts joining an ongoing quota arrangement. This allows you to simulate participation of the new contract in the quota arrangement immediately. If you leave this field blank, the system assigns the new contract with all sourcing requirements, until it catches up with the other contracts participating in the quota arrangement.