Purchasing organisation

 purchasing organisation:

Definition : A purchasing organisation is simply defined as a group of purchasing activity that is associated with all or a specific part of the enterprise.


*  SAP can be defined to allow all purchasing department to be accurately reflected.
Navigation path:
                                                    IMG
                                                       ↓
                                        Enterprise structure
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                                                 Definition
                                                        ↓
                                          Materials management
                                                        ↓
                                      Maintain purchasing organisation.




Types of purchasing organisations:

1. Purchasing at an enterprise level.
2. Purchasing at the company level.
3.purchasing at the plant level.
4.Reference purchasing organisation.


1. Purchasing at an enterprise level:

 if a company have central purchasing department, the purchasing organisation is defined in SAP and then assigned to all companies.

2. Purchasing at the company level:

for some company the purchasing function is created and assigned for each company code.

case study:

if many company code were created in single country. it is possible to assign same purchasing organisation for all the company codes in same country.

the purchasing organisation can be assigned to a company code by using transaction code ox01.

Navigation path:

                                                             IMG
                                                               ↓
                                                  Enterprise structure.
                                                               ↓
                                                   Assignment material management.
                                                               ↓
                                                 Assign purchasing organisation to company code.

3.purchasing at the plant level:

* In an enterprise that has companies with large autonomous plants the purchasing decisions may be at a local level.

This scenario has an advantage when the vendors are at a local level and few vendors supply material or services to more then one plant.


Navigation path:

                                                          IMG
                                                            ↓             
                                            Enterprise structure
                                                            ↓
                                                       Assignment
                                                             ↓
                                               Material management
                                                              ↓
                                             Assign purchasing organisation to plant

4.Reference purchasing organisation:
     In large companies, the strategic purchasing function analysis purchasing data and works to  negotiate  the best prices for material & services from global vendors for both good and services.

* A purchasing organisation must be assign to reference purchase organisation to have access the information on the system.

Navigation path:

                                                         IMG
                                                            ↓
                                                 Enterprise structure
                                                            ↓
                                               Material management
                                                            ↓
                          Assign purchasing organisation to reference purchasing organisation.


Practically:

Access T-code: SPRO

click on reference IMG as shown below:

Navigate to path as shown below:

provide the details and SAVE

conformation screen

creation of new purchasing organisation is successfully completed


Cheers
Ram Naveen