A sourcing rule can be created by specifying one or more of the following key parameters:
You have the flexibility to leave any of the above parameters (except fulfillment type) as void in the sourcing rule and that implies that the sourcing rule is applicable to all values of that parameter.
For each sourcing rule, you can then specify a sequence of node or distribution group to be used for sourcing the product.
As discussed in product sourcing, Sterling Selling and Fulfillment Foundation tries to create transfers or purchases if enough stock is not available in the delivering location. Set up for procurement orders is the same as that for shipped products.