topic Re: what is Purchase Organization in Application Development and Automation Discussions

what is Purchase Organization

Former Member — Tue, 10 Apr 2007 11:30:03 GMT

Hai,

can any one explain clearly abt "what is Purchase Organization" .

what is the use of this.

Re: what is Purchase Organization

Former Member — Tue, 10 Apr 2007 11:37:05 GMT

hi,

path for creating purchase organisation in sap.

spro->enterprise structure->definition->materials management->maintain purchasing organisation.

Definitions:-------

purchase organisation is responsible for all purchase activities.

From the Materials Management and Purchasing view, the purchasing

organization is responsible for all purchasing activities (including the

processing of requests for quotations and purchase orders, for example).

The purchasing organization is integrated within the organizational

structure as follows:

o A purchasing organization can be assigned to several company codes.

(= Corporate-group-wide purchasing).

o A purchasing organization can be assigned to one company code.

(= Company-specific purchasing).

o A purchasing organization can also exist without being assigned to a

company code.

- Since each plant must be assigned to a company code, the latter

can be determined via the plant at the time of each procurement

transaction even if the procuring purchasing organization has

not been assigned to a company code.

o A purchasing organization must be assigned to one or more plants.

(= Plant-specific purchasing).

o All items of an external purchasing document, that is, request for

quotation, purchase order, contract, or scheduling agreement, belon

to a purchasing organization.

o The purchasing organization is the highest level of aggregation

(after the organizational unit "client") for purchasing statistics.

o The purchasing organization serves as the selection criterion for

Re: what is Purchase Organization

Former Member — Tue, 10 Apr 2007 11:41:29 GMT

The purchasing organization is the highest level of aggregation (after

the organizational unit client) for purchasing statistics. The purchasing

organization negotiates conditions for one or more plants. It is legally

responsible for concluding contracts.

The purchasing organization serves as a possible selection criterion for

lists of all purchasing documents.

From the Materials Management and Purchasing view, the purchasing

organization is responsible for all purchasing activities (including the

processing of requests for quotations and purchase orders). A purchasing

organization can be divided into several purchasing groups that are

responsible for different operational areas allowing:

 Each purchasing organization to have its own info records and

conditions for pricing

 Each purchasing organization to have its own vendor master data

 Each purchasing organization to evaluate its own vendors using MM

Vendor Evaluation.

Authorizations for processing purchasing transactions can be assigned

to each purchasing organization.

Re: what is Purchase Organization

former_member404244 — Tue, 10 Apr 2007 11:46:04 GMT

hI,

Plz go through the below link..

http://help.sap.com/saphelp_srm30/helpdata/en/b2/afe438b572b407e10000000a114084/content.htm

Regards,

Nagaraj

Re: what is Purchase Organization

Former Member — Tue, 10 Apr 2007 11:50:33 GMT

PLease check an excerpt from the documentation:

"Definition: purchasing organization

Purchasing (MM-PUR)

An organizational unit in Logistics, subdividing an enterprise according

to the requirements of Purchasing.

A purchasing organization procures materials and services, negotiates

conditions of purchase with vendors, and is responsible for such

transactions.

You specify the form of procurement by assigning purchasing

organizations to company codes and plants.

Possible forms are:

o Enterprise-wide: One purchasing organization procures for all the

company codes of a client - that is, for all companies belonging to

a corporate group

o Company-specific: One purchasing organization procures for one

company code

o Plant-specific: One purchasing organization procures for one plant

Mixed forms are possible. These are replicated in the system using

reference purchasing organizations.

A purchasing organization can access and use the most favorable

conditions and centrally agreed contracts of the reference purchasing

organization assigned to it.

Regards,

Ravi