SAP Knowledge Base Article - Public

2506730 - Determination of the Source of Supply in Intercompany Sales Orders


You are working with an intercompany scenario. You have created Purchase Order ABC (ABC represents the Purchase Order ID) and the related Sales Order DEF (DEF represents the Sales Order ID). You want the Sales Order to have an External Source of Supply, but an Internal Source is selected by the system.

Fixed Sources of Supply have been determined in the Sourcing and Contracting work center but they are not used here.

Reproducing the Issue

  1. Go to Purchase Requests and Orders work center.
  2. Go to Purchase Orders view.
  3. Show All Purchase Orders.
  4. Find ABC.
  5. Select Edit.
  6. Go to Document Flow tab.
  7. Open Intercompany Sales Order DEF.
  8. Go to Items tab.

You can see all Items have Internal fulfilment when you are expecting an External fulfilment.


In Intercompany Sales Orders, the item details will be fetched from the reference Purchase Order but the sourcing will be done independently based on the system configurations. Intercompany scenarios do not influence the determination of the Source of Supply.

In Sales Orders, the Source of Supply determination, the Internal Supply will be determined as best fit in spite of Fixed source of Supply assignment. This is standard system behaviour. The highest priority will be given to internal stock, determined based on Stock Availability and Transport Lanes. In case there is no internal stock for the material then system checks for External procurement.

External Procurement is influenced in the following order:

  1. Fixed Source of Supply,
  2. Quota Arrangement,
  3. Contracts,
  4. List Prices.

The system will always check for Internal procurement first, regardless of assigned Fixed Source of Supply or Product master data settings. These settings will only have an impact on the planning side and influence proposal creations.


You can manually override the Source of Supply determination in case you need an external supply or ensure your system is configured for the checks mentioned above.


KBA , AP-SLO , Sales Order Processing , How To