Advantages and disadvantages for having the central purchasing organization

Hi all,
Cud neone list out the advantages and disadvantages of having central purchasing organization.
and what is the best practice of selecting the puchasing organization.
Thanks

Hi
Cud neone list out the advantages and disadvantages of having central purchasing organization.
Rather than asking for the advantages and disadvantages it will be helpful if u see why the functionality of having the purchase organisation centrally and decentralised has been provided in SAP. I hope u have seen the help file in ur SAP about purchase organisation.
The point u can note down which will be of importance is Each purchasing organization has its own info records and conditions for pricing. if u go for the centralised purchasing organisation say in company code u have three plants and purchasing organisation is for all theree plants, then the conditions and inforecords holds for all the thrre plants. If u go for the decentralised say for each plant different purchse organisation then each plant has its own inforecords and conditions. This is upto the business requirement which u should select.
Similarly u can use this logic for the following cases
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.
Here u can apply the logic and see how centralised and decentralise purchasing organisation effects. Whethe u want the data should be applicable for all plants then go for centralised if not go for decenralised.
what is the best practice of selecting the puchasing organization.
I think there is no best practice as such and it depends on how u r company business works.
I welcome the comments from experts if there is any best practice.
Thanks
Ravi

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