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Relation between a Purchase Organisation and Reference PORg

former_member184595
Active Participant
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Hi ,

1) Can any one explain me what is the relation between a Purchase Organisation and Reference Purchase Organistion.

2) I have removed the assignment of Purchase organisation 1000 to the Reference POrg 6666 . I want to do the testing in development server after making the above configuation change. Can any one let me know how to do the testing to see that this configuration change is taken place?.

Thanks in advance.

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Answers (2)

Answers (2)

kunal_ingale
Active Contributor
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hi

Ref. Pur Organisation is used when there is no centralized pur. organisation. You have to define 1 pur. organsation as refernce pur. organisation and link other pur orgnisations to this ref. pur. orgaisation. When you create a contract using this pur. organisation and this contract can be used by other pur orgasations which are linked to this ref. pur oganisation.

Ref. Pur Organisation is basically used for better negotiation.

Eg- You are having 2 plants (A & B) of 2 different company code(A & B).

1. Pur org A is assigned to company code A & plant A

2. Pur Orga B is assigned to company code B & plant B.

3. Ref pur organisation C is created and linked to Pur organisation A and B.

Scenario -

Vendor A can supply Material A 1000 qty at Rs. 100 whereas more than 1000 qty at Rs. 90.

But your requirement for Plant A is Rs. 800 and Plant B is Rs.700

If you create a contract on plant basis to the Vendor A then you have to pay Rs. 100.

But if you create a contract with ref pur organisation C for total requirement of Rs.1500 without plant basis then rate will be only Rs.90.

Then this contract can referred by both the plant and can be converted to P.O at Rs.90.

former_member184595
Active Participant
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Hi,

Thanks for the clarification.

I want to know in detail the impact to the source list, any open POs/Contracts or any other functionality if the assignment of POrg to the refernce Porg is removed. Please suggest me what is the impact if we remove this assignment.

Thanks in advance.

kunal_ingale
Active Contributor
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hi

plz check that are u able to remove the assignment of PO to REf PO when there are documents prest

The conditions of a reference purchasing organization to be used by other purchasing organizations for the purpose of price determination will not be happen.

Several purchasing organizations wil not access the contracts of a certain reference purchasing organization

Former Member
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Hi

Ref purchase orgnaisation: The conditions of a reference purchasing organization to be used by other purchasing organizations for the purpose of price determination

regards

Prasanna