Sourcing rules specifies how to replenish items in an organization.

Sourcing rules can also be used to

specify the priority & percentages of different sources available for a single item.
Sourcing rules can be used for purchasing from external supplier, transferring materials from internal
organization, and making subassemblies in an organization.
Sourcing rules can be assigned to items in organization level. If you follow a single sourcing rule for all
the organizations in your enterprise then you can assign sourcing rule only in the master organization
level, and system will use the same sourcing rule in all the other organizations.
Sourcing rule is a site level master data. Once defined sourcing rules are available for all organizations
across all business units.

Each sourcing consists of 2 different levels of data

1. Header Level Information
2. Line Level Information

Header Level Information

Header level information is same for all the line sources used in a sourcing rule. You can view & update
the header level information of a sourcing rule by navigating to Purchasing -> Setup -> Sourcing Rule
Sourcing Rule Header Id:
A unique system generated number. You cant modify this number.
Sourcing Rule:
Enter a name for the sourcing rule. You can use this sourcing rule name in other forms and reports.
Status:
Select a status for the sourcing rule. Only active sourcing rules are used by system.
Description:
Enter any comment /remark in the description field.

Line Level Information

You can create one or more sourcing lines for each sourcing rule header. Sourcing rule line contains the
source and percentages of source related information.
Line Id:
Line id is a read-only field. Line id is an auto increased, primary key of the po_sourcing_rule_line table.
Source Type:
External: System creates purchase requisitions against external sourced line. System uses the supplier
name and supplier site name in the souring line to create the requisition and purchasing document.
Internal Buy: System creates internal requisitions against internal sourced buy line. System uses the
organization name in the souring line to create the requisition and ISO.
Internal Make: System creates unreleased work order against internal sourced make line.
Rank:
Enter a rank for the sourcing rule line if multiple lines are created for the same sourcing rule.
Allocation %:
Enter an allocation % for the sourcing rule line if multiple lines are created for the same sourcing rule.
Org:
Select the inventory organization name from where the item will be sourced.
Supplier Name:
Enter the name of a supplier.
Supplier Site:
Select a supplier site name.