SOURCE LIST IN SAP MM

Source List in SAP MM

Target Audience:

  • SAP MM Consultant
  • SAP IBP Consultant.
  • End users.

    • Pre-requisite:SAP MM knowledge

In this article, we will discuss the source list in SAP MM. Source list plays an important role in defining sources of supply for a particular period of time.
In this article, we will get to know about:

  1. The overview of the Source list and why it is important.
  2. What are the different ways of creating and maintaining a source list?

  • A Source list is a list of possible sources of supply of a material over a given period of time.
  • It specifies the time period from a vendor to order a particular material.
  • Source list can be copied from one plant to another plant.

Purpose:

The supply source determination function is used to assign sources of supply to requirements. This takes account of both internal sources of supply (Distribution centres) and external sources of supply (External vendors)



The source list is referred to in the planning procedure to generate procurement proposals in the ERP system. Sources provide the material or service for better performance of the business.

  • Contains: Material, Plant, Purchasing Organization, Vendor with validity period From & To.
  • Table: EORD
  • T-Codes:
    • Maintain Source List – ME01
    • Display Source List – ME03
    • Display Changes to Source List – ME04
    • Automatically generate of Source list – ME05
    • Analyze Source List – ME06
    • Display Source List for Material – ME0M

Source list can be made mandatory at plant level in customization part according to the business requirement Path: SPRO > SAP Ref IMG > Materials Management > Purchasing > Source List > Define Source list requirement at plant level.

If we maintain these settings at the plant level, all the material created in that respective plant should have a mandatory source list for the external procurement.

Source list can be created by the following two ways −

  • Automatically
  • Manually
*For maintaining source list, Purchase Info Record is mandatory for that specific material.

Automatic Creation of Source List

Step1-Go to MM02 (Edit mode of material master for which you want to create source list automatically). Select all the views.

Step2-Inside purchasing view, check the box for source list. Click on Save. Source list will be created automatically for the material.



If we tick this source list check box, it is mandatory to maintain a source list for the material for that particular plant.

Manual Creation of Source List

Path: Logistics ⇒ Material Management ⇒ Purchasing ⇒ Master Data ⇒ Source List ⇒ Maintain.

T-Code ME01

Step 1 − On the SAP Menu screen, click Maintain by following the below path.



Step 2 - Enter the material number for which you want to maintain the source list and respective plant details.



Step 3 - − Fill in all the necessary details such as valid periods, name of vendor, purchasing organization, etc. Click on the Save icon. Source list for the material is now maintained.

  1. Valid from – Date from which source list is valid.
  2. Valid to – Date until which source list record is valid.
  3. Vendor – Vendor master record is maintained here.
  4. POrg – Denotes Purchasing Organization.
  5. PPI – Plant from which material is procured.
  6. OUn – Specifies unit of measure in which material is ordered.
  7. Agmt – Specifies the number of Outline Agreement.
  8. Item – Specifies the number that uniquely identifies an item in an outline agreement.
  9. Fixed – Specifies source of supply is a preferred procurement option within the given period.
  10. Block – Source of supply is blocked for the ordering process. (Source list is used to FIX or BLOCK the particular vendor for the respective material in procurement for a certain period of time)
  11. MRP – Key that determines how the source of supply define in the source list record used in MRP.

Role of Source List concerning MRP run.

  • If source list requirement has been set at the plant level, then it is mandatory to maintain the source list whether you run MRP or not.
    So, when we create a purchase order or schedule lines is generated/maintained, system expects a source list or throws an error message if source list is not maintained.
  • If source list requirement is not set for the plant, then you require source list only if you want MRP to determine the source.
    The following scenarios are possible:
    • If you are operating with scheduling agreement and you want MRP to automatically generate schedule lines through MRP, then it is mandatory to maintain source list. In the source list record, you have to maintain the scheduling agreement & item in the Outline agreement field. You will also need to set the MRP indicator to "2" - generate schedule lines.
    • If you are working with PRs and you have only one source(vendor), then you can still maintain the source list for the vendor. In such case, you can maintain MRP indicator "1" - generate purchase requisitions. Running MRP will generate purchase requisitions with source assigned for this vendor.
    • If you are working with multiple sources, then you have to maintain source list for all the sources and mark a particular vendor as fixed and MRP relevant = "1".
    • If you are working with multiple sources and have quota arrangement, then in addition to source list, you also have to setup quota arrangement and maintain info-record.

Author:

Nikhil Shinde/ Basavaraj S.G
SAP MM Consultant, Baranwal Consultancy and Services (BCS), Pune, Maharashtra, India

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