Source lists are used in SAP MM when there exists more than one possible source of procuring materials. Source lists enable to choose the correct source for a material when a purchase requisition is created either manually or through MRP materials requisition planning. The Source list includes allowed, preferred as well as sources of material blocked.

A procurement source for material is defined using a source list record. SAP MM offers a lot of flexibility while defining a source list. One such feature is fixed sources. SAP MM gives preference to fixed sources within a certain validatity period. Also, only one fixed source can exist for a material. SAP does not consider blocked sources while determining sources. Further, source lists can be configured for an individual material or for all materials used in production. The materials requisition planning indicator MRP determines how source defined in the source list is used in materials planning. Source lists can be made mandatory for all material purchasing. A through analysis of the source will reveal materials for which no source list record exist. All in all, source lists once configured are an excellent and easy way of procuring material.

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