Use of Surge Options

Surge options are a specific type of optional line items that you can create in shopping carts and in purchase orders to provide for an unforeseen increase in demand. Surge options are identified in Sourcing as potential sources of supply if their period of performance has started.

Note Note

You can create an RFx or a contract to source a surge option that was created in a shopping cart. However, in the RFx and the contract, the option type surge option does not exist. Suppliers only see that the item you want to order is optional. This feature allows you to avoid disclosing any details about the potentially sensitive character of an optional line item to potential suppliers.

End of the note.

In Sourcing, you can create releases against purchase orders containing surge options to meet the demand for certain goods or services.

You can do the following:

Order the full quantity of the surge option at once
Order partial quantities over a period of time

Prerequisites

You can create release orders against surge options if the following conditions apply:

You have created a purchase order containing at least one surge option.
You have defined a reference item for the surge option.
You have ordered the purchase order.
The period of performance of the surge option has started.

Process

In Sourcing, you search for a source of supply to fulfill the requirement by choosing Propose Sources of Supply Contract and Info Record .
The system displays potential sources of supply, including the surge option. You have the following alternatives:
- If the surge option is active, you can assign the surge option immediately as a source of supply.
- If the surge option is inactive, it is marked as eligible. To be able to select it as a source of supply, you must do the following:
  1. Edit the purchase order that contains the surge option and exercise the option.
    
    Note
    If you have implemented an approval workflow, the purchase order change must be approved.
    
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  2. In Sourcing, search again for a source of supply for the requirement.
You assign the surge option as a source of supply, create a draft purchase order, and process the draft.
The system adds a new standard line item to the existing purchase order that contains the surge option and replicates the line item to the SAP ERP back-end system. The line item is transferred to the supplier to release the goods or services.
Note
- Both the original surge option line item and the newly created standard line item are listed in the Item Overview of the purchase order.
- In the Item Details of the surge option line item, you see the open quantity that can still be ordered against the surge option.
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Result

The supplier has received the standard line item that has been added to the purchase order. The standard follow-on procurement processes for the goods receipt and invoice receipt apply.