What is source of supply in SAP (SRD-SCM-MD - SCM-Master Data)?

SAP Term: source of supply

• Component: SRD-SCM-MD

• Component Name: SCM-Master Data

• Description: An option for the procurement of a product. A source of supply can be an internal source released planning model or an external source purchasing contract or list price. The system determines the most suitable source of supply on the basis of the availability date and planning quantity of a planning proposal and the procurement type defined in the product master.

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• Key Concepts: 
  Source of supply is a term used in SAP to refer to the source from which a company obtains its goods and services. It is a key component of the SAP SCM-Master Data module, which is used to manage and track the supply chain. The source of supply can be a vendor, supplier, or other external entity. 
  
  How to use it: 
  In SAP, the source of supply is used to identify the origin of goods and services. This information is used to track the supply chain and ensure that goods and services are delivered on time and in the correct quantity. The source of supply can be set up in the SAP SCM-Master Data module by entering the vendor or supplier information. 
  
  Tips & Tricks: 
  When setting up a source of supply in SAP, it is important to ensure that all relevant information is entered accurately. This includes contact information, payment terms, delivery terms, and any other relevant details. This will help ensure that goods and services are delivered on time and in the correct quantity. 
  
  Related Information: 
  The source of supply is closely related to other components of the SAP SCM-Master Data module such as material master data, vendor master data, and purchasing documents. It is also related to other modules such as inventory management, production planning, and sales & distribution.