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The quota arrangement is an instrument used in sourcing administration.
A quota arrangement divides the total requirement of a material over a period among certain sources of supply by assigning a quota to each source.
The quota specifies which portion of the total requirement should be procured from a given source.
If a quota arrangement exists for a material, it is taken into account in the source determination process.
A quota arrangement is specified for a certain period. A quota arrangement item is created for each source within the period.
The existence of a quota arrangement does not involve the apportioning (among different sources) of an individual material requirement (that is the quantity set out in an individual purchase requisition). The entire requested quantity in a requisition is assigned to one source under the quota arrangement.
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