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Differance Between CENTRAL Purchase organisatio & REF Purchase organisation

Former Member

Helo friends / Gurus

Can anyone explain the differances between Central & Ref porg's ?

Why these 2 Porg's are used in a company and where ?

Advance Thankq for all ....

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Ref Pur Org:

In Customizing it is possible to assign reference purchasing organizations to a purchasing organization. This allows the purchasing organization access to the conditions and contracts of these reference purchasing organizations. The purchasing organization can make use of up to two reference purchasing organizations when the sequence in which it accesses conditions is determined.

Std Pur Org ( Central P org):

This standard (default) purchasing organization is used When the source of supply is determined for the purposes of a stock transfer or consignment, the default purchasing organization is used automatically. Further purchasing organizations can be assigned to the site in addition to the default. A site cannot order if it has not been assigned to a purchasing organization


Answers (4)

Answers (4)

Former Member
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Dear Vami,

Please find diffrence in simple manner

A) Reference Purchase Organization( Also called as Central Pur Org.)

1)Used to map cross purchasing organization procurement transaction

2) Possible to use other purchasing organization to use conditions of this Purchase Organization

3) Allow to access contract

4) In customizing you can configure which data ( i.e. contract or conditions ) a purchasing organization can access

5) a multilevel reference relationship is not possible

6) Purchasing Info record for central Purchasing organization must exist.

7) This is normally at client level.

B) Standard Purchase Organization:

1) If a plant is having more than one purchasing organization , one of the purchasing organization is designated as standard Purchase Organization.

2)It is used for Transaction of pipeline material , Consignment material or stock transfer orders.

3) In source determination system automatically pulls this Purchase Organization

4) For goods issue Purchasing Info record of standard Purchase Organization is used.

5) Standard Purchase Organization info record is used for auto PO generation during GR

Reward if useful,

Vivek Maitra

Former Member
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Ceentra pur org: This is the pur org not attached to any of the plants. Thsi does the negotiations for the common items like stationery, chairs, etc at corporate level and creates a centra contract. Adopting the central contact the plant specific pur org. creates Purchase order. (the PO will have always reference and control to the central contract).



Former Member
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Central Purchase Orgn and Ref Purchase Organisation are the same.When other purchase organisation refers the one purchase organisation, that purchase organisation becomes central purchase organisation...

For it is used for many purposes like conditions negotiated with vendor,contracts created..,ets..

Here Purchase organisation is assigned to one purchase organisation.

Reg Standard Purchase Organisation, it is used for consignment , transfer postings,pipeline tc..

here plant is assigned to Purchase organisation.

Hope its cleared ur doubts..



Active Contributor
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Hi Vamsi,

read following info by SAP this may help u regarding Pur Org.

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:

A purchasing organization can be assigned to several company codes.

(= Corporate-group-wide purchasing).

A purchasing organization can be assigned to one company code.

(= Company-specific purchasing).

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.

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

(= Plant-specific purchasing).

A purchasing organization can be linked to one or more other purchasing organizations.

(= reference purchasing organization)

For more on this topic, refer toAssign Purchasing Organization to Reference Purchasing Organization.

A purchasing organization can be divided into several purchasing groups that are responsible for different operational areas.

Each purchasing organization has its own info records and conditions for pricing.

Each purchasing organization has its own vendor master data.

Each purchasing organization evaluates its own vendors using MM Vendor Evaluation.

Authorizations for processing purchasing transactions can be assigned to each purchasing organization.

All items of an external purchasing document, that is, request for quotation, purchase order, contract, or scheduling agreement, belong to a purchasing organization.

The purchasing organization is the highest level of aggregation (after the organizational unit "client") for purchasing statistics.

The purchasing organization serves as the selection criterion for lists of all purchasing documents.

Possible organizational forms

You can organize your purchasing function in the following ways:

Corporate-group-wide purchasing

Company-specific purchasing

Plant-specific purchasing

All of these forms can co-exist within a single client.

Corporate-group-wide purchasing:

A purchasing organization is responsible for the purchasing activities of different company codes.

In this case, you do not assign a company code to the purchasing organization, but specify the company code concerned for each individual purchasing transaction. You assign plants from different company codes to the purchasing organization.

Company-specific purchasing:

A purchasing organization is responsible for the purchasing activities of just one company code.

In this case, you assign a company code to the purchasing organization. The purchasing organization may procure only for this company code. You assign only plants of the company code concerned to the purchasing organization.

Plant-specific purchasing:

A purchasing organization is responsible for the purchasing activities of one plant.

In this case, you assign the plant and the company code of the plant to the purchasing organization. The purchasing organization may procure for this plant only.


If you wish to work with a mixture of the above organizational forms, the reference purchasing organization is of significance to you.

It is possible to allow one purchasing organization to access the contracts and conditions of another - a so-called reference purchasing organization. This makes it possible for advantageous terms negotiated by one purchasing organization to also be used by other purchasing organizations.



Former Member
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thankq for ur sponteneous response ....

but am looking for ..

Central porg is responsible for purchasing (more than 1 company code or more than 1 corporate grp) ?

Ref porg is responsible for purchasing (1 or more company codes) ?

and finally is STND & CENTRAL porg both are same ??

Former Member
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Y r u in confusion still?

Listen, only one purchase organisation can be assigned to company code.So, acentral Purchase org or Ref Pur chase org are never assigned to Company codes..The link comes from plants being assigned to Purchase organisation.

Standard pur Org and central P org r not same.

Standard PO is assigned to plants.check in assignments of Enterprise structure.

This will help U.



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Std PORG is assigned to individual plants.

Reference pur org is assigned to the general purchasing org.

Std POrg is used for creating automatic PO during GR.

Ref POrg is used to negotiate with vendors on behalf of a set of plants.


and rewards pls.