Advantages of a reference purchasing organization?

Hi there,
Can somebody explain the Advantages of a reference purchasing organization.
when and where it should be recommended.
also what are the differences when it comes to the assignment is SAP?
thanks and regards

dear Rajiv
Example: Working with Reference Purchasing Organizations
The reference purchasing organization RORG, which belongs to head office in Atlanta, has negotiated a comprehensive contract for the material Steel bolt 01 with favorable conditions with
vendor Smith Corp.
The purchasing organization EORG, responsible for procurement in the Houston and Austin plants, wants to issue release orders for the material Steel bolt 01 against this contract.
Purchasing organization EORG procures other consumable materials from regional suppliers.
Prerequisites:
Before the purchasing organization EORG can issue release orders against the above contract,
the following settings and data must have been maintained:
Maintaining Customizing Settings
Both purchasing organizations are maintained in Customizing for the Enterprise Structure
under Definition Materials Management Maintain Purchasing Organization.
- The reference purchasing organization RORG can be maintained with or without a company
code and plant(s).
- The purchasing organization EORG is assigned to company code 1000 and the two plants.
Purchasing organization RORG is maintained as the reference purchasing organization for
the purchasing organization EORG in Customizing for the Enterprise Structure (
Assignment Materials Management Assign Purch. Organization to Reference Purch.
Organization).
Entering Application and Master Data
The vendor Smith Corp. is maintained for both purchasing organizations.
The material Steel bolt 01 is maintained for the plants Houston and Austin.
A centrally agreed contract has been created without a plant by the reference purchasing
organization RORG.
Reward points if helpful
Thanks and regards
Ravikant Dewangan

Similar Messages

Not able to get data from Reference Purchase Organization

Hi,
    the scenario is
Need to have one global pur. org for 3 company codes and
one each company code specific purchase org.
so i created Z300 as a ref purchasing org
and created Z100 for a specific company 3000 n assigned to it
and assigned Z100 to ref purchase org Z300
and i created a vendor master with Z300 purchase org n company code 3000
but when i creating a PO with ME21n
when i enter the vendor and Z100 as the purchase org ...it tells me that vendor is not maintained for Z100.
( but as per the documentation the data shud come from ref. purchase org ? isnt that true)
and
when i enter the vendor and Z300 as the purchase org and enter the material and plant it says
plant is not maintained for Z300 ..? i understand this ...the correct process is the first one ..
can nyone let me know y this error is coming ....is there anything i am missing in assigning.
thanks a bunch

purchasing staff of your enterprise to work with conditions and contract
release orders on a cross-purchasing-organization basis.
It is then possible for:
o The conditions of a reference purchasing organization to be used by
   other purchasing organizations for the purpose of price determination
o Several purchasing organizations to access the contracts of a certain
   reference purchasing organization
You have to maintianed the vendor for all the Pur org for which you want to use
the ref pur org will come inthe picture when you create the contract at global level means at ref pur org so all other pur org can use the same contract.
So if you creating PO for your std pur org then you have to maintain the vendor and you can refer the contract from ref pur org

REFERENCE PURCHASING ORGANIZATION

Good Morning to everybody.
My question is about reference purchasing organization.
I have a central agreement with company code, 01, purchasing organization 01 and plant 01.
I need to make purchase orders on this agreement with three different companies, p.organization and plants.
How can i do, this?
I read about the reference purchasing organization, but i have no news about this.
Thank you in advance for your cooperation,
Francisco

This functionality enables the purchasing staff of your enterprise to work with conditions and contract release orders on a cross-purchasing-organization basis.
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.
For more details please refer below links as well,
http://help.sap.com/saphelp_erp60_sp/helpdata/en/0b/ecb237e29bc368e10000009b38f8cf/content.htm
Purchasing Organisation

Reference Purchase Organization?

Dear Gurus,
What is the use of reference purchase organization.
In which case, we can assign our plant to reference purchase organization?
Pls clarify my doubts..

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.
Hope this helps you.
Regards,
Rajess Kumar.R

Centralized or Reference Purchasing Organization

Hi
Plz help me to tell what is Centralized or Reference Purchasing organization. Are they same? And Whether they are assigned to plant or not???
Thanks in advance

hi jaheer..
You solve my 90% question but just one point that whether this reference Purchase organization is also assigned to Plant or CC?
And to what this Centralized Purchase Organization assigned to?
And is that any Purchase Organization responsible for any Plant or Company Code can refer this Referencing Purchase org.???(Its master or transactional data).
Plz help for the same
Thanks
Neha
Edited by: Neha121988 on Jun 14, 2011 8:25 AM

Purchasing Organization

hye
Can you tel me what is the difference between Centralized Purch org, reference Purch org and Standard Puch org.
how do we assign to company code and plants
what are the advantages of using the same

hi,
Normal Purchase organization is to procure either for the plant/entire company code/cross company level based upon assignment settings in SPRO.
For Reference Purchase organization, it will be simply assigned to other normal Purchase organizations only but neither assigned to any plant or company code. This is useful to enjoy the corporate contracts and their price benefits.
Regarding Standard Purchase organization, it is to handle procurement of special stocks
G.Ganesh Kumar

Creation of vendor organization at all purchasing organization level

Dear Experts,
Our client is looking for a functionality to create a vendor which links the vendor to all the purchasing organizations (without manual extension) . In the org setp, the client has multiple company codes and purchasing organizations. What I understand is that ERP MM allows us to create a vendor only at purchasing organization (MK01) or company code level (XK 01).
Could you please advise how to create a vendor which is automatically applicable to all the purchasing organizations?
Here, the client is using the supplier registration functonality to register the vendors which on approval will get replicated to to the ERP MM system.
Thanks and regards,
Ranjan
Ranjan Sutradhar

Hello,
You may define Purchase Organization as the reference Purchase Organization and assign all the purch. organizations to reference purch. organization. Then define Purchase view for the Vendors in Reference Purchase Organization using MK01.
Thanks,
Venu

Standard and Reference Purchasing Org

What is the difference between standard and Reference purchasing organization?
In which scenario it is used?
Regards,
Komal

Dear Komal,
Please find difference of both these term & its application 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
I thinks this will clear your concept.
If useful reward points,
Vivek Maitra

Reg.Purchase organization

Dear Friends
I am confuse with the below things
1. Purchase organization
2. Std purchase organization
3. Reference purchase organization
4. Centralised purchase organization
5. Decentralized purchase organization
my understanding is : Reference purchase organization would not procure, std purchase org handle consignment,stock transfer,pipeline. If so what is the role of purchase orgaziation not std purchase organization.
Centralized purchase organization - procurement process for one particular plant where as why we have to assign the purchase organization to plant and company code, otherwords, for company code specific pur.org we assign for both plant and company code.
Pls advise me.
Thanks
Rajakumar.K

Hi Raja
Try to imagine as per below..
Std PORG:If several purchasing organizations procure for a certain plant, you can designate one of them as the standard purchasing organization for the transactions pipeline, procurement, consignment, and stock transfer. In the source determination process for stock transfers and consignment, the system then automatically pulls this standard purchasing organization. In the case of goods issues of consignmentand pipeline materials, the purchasing info records of the standard purchasing organization are read.
Reference PORG: You can use a reference purchasing organization to facilitate cross-purchasing-organization procurement transactions. It is possible for other purchasing organizations to use the conditions of a reference purchasing organization for price determination purposes. Similarly,it is also possible for several purchasing organizations to be allowed access to the contracts of a certain reference purchasing organization.
Centralized PORG: A Centralized PORG purchases for all the plants across all the company codes, therefore as a rule the central purchasing dept. of a corporate group is not assigned to any company code.
Decentralized PORG: This can be as per the requirements e.g suppose you have two company codes assigned to one company. then u can view decentrailzed PORG as two PORGs responsbile for these two comapny codes. (but for all the plants under each of the two company codes)
Hope this would help clear somewhat.
Regards

Creating Central Contract using Reference Purchasing Org

Hi,
We are using two type of purchasing organization:
a.Global Purchasing Organization - It is not assigned to any company code or plant.
b.Country Purchasing organization u2013 It is assigned to Global Purchasing Organization. This cross-plant country specific purchasing organization is to procure materials for several plants independent to a company code. We have assigned the purchasing organization to the plant and not to a specific company code.
Global purchasing organization has been setup a reference purchasing organization to be able to create central contracts that is independent of company code and plant.
However whenever we create the central contract using the reference purchasing organization, the system will not proceed unless we define a company code. Please let me know how we can avoid the Pop up message u201CThe Purchasing organization XXXX has not been assigned to a company code. Please enter a company code.u201D
Please note that neither Global nor Country purchasing organization is assigned to company code. The company code will be determined only from Plant.
Please help.
Regards,
AG

Hi.
In your case, both the Purchase organizations ( Global Purchase Organization & Country Purchase Organization ) are not assigned to the company code. But Country Purchase Organization is assigned to the plants from the different company codes and Global Purchase Organization is not assigned to any plant also.
In this case, If you are creating central contract with the Global Purchase Organization , you will get error. Becuase Global Purchase Organization is not assigned to any company code or plant.
If you are creating central contract with the Country Purchase Organization, system will allow. Because this purchase organization is assigned to the plants from the different company codes. Based on this plant, system will identify company code.
So, conclusion is Purchase organization is must be assgined to the plants. This setting is mandatory in order to indentify company code which is giving in the Purchase document. But the assignment of company code to the purchase organization is optional.
So, assign plants to the Global Purchase Organization and try to create central contracts. It will work.
Regards
KRK

Reference Purchasing Org??

Hi All,
We have two plants 0721 and 0722 for the same company code. I have assigned Purchasing org 0721 to plant 0721 and Pur org 0722 to plant 0722.
Also I have assigned 0721 as the reference purchasing organization for purchasing org 0722 in the config.
I have created a contract (with no plant assignment) for purchasing org 0721 which is the reference purchasing organization.
Now when I try to create a new PO using this contract for plant 0722 and purchasing org 0722 I get an error message as "Contract has different purchasing organization 0721".
But this error should not have been there as I have maintained purchasing org 0721 as reference pur org for 0722.
Am I missing something here......
Regards,
V S

Hi,
1. Did you get error message or warning message?
2. Is 0722 in T024Z-EKORG and 0721 in T024Z-EKORZ?
Regards,
Csaba

Assign Purchase organization to plant

Hi,
I have created the reference purchase organization 2000 and assigned it to Purchase Organization 1000 as a reference P.Org.
P.Org 1000 is assigned to plant 1000 .
When creating a PO for P.org 2000 and Plant 1000. I get this message:
Purchasing organization 2000 not responsible for plant 1000.
Does the reference P.org have to be assigned to the plant?
If I read <a href="http://help.sap.com/saphelp_470/helpdata/en/0b/ecb237e29bc368e10000009b38f8cf/frameset.htm">http://help.sap.com/saphelp_470/helpdata/en/0b/ecb237e29bc368e10000009b38f8cf/frameset.htm</a>
it says "The reference purchasing organization RORG can be maintained with or without a company code and plant(s)."
but do I have to assign the reference P.org to the plant anyway?
/Anders

Hi Anders
It seems there is some confusion..will try to explain you once again..
Suppose you have two pur organization(One refernce and other belongs to a plant)in your case 2000 and 1000 respectively.
steps are:
1) Both purchasing organizations(2000 and 1000) are maintained in Customizing for the Enterprise Structure under Definition-Materials-Management- Maintain Purchasing Organization.
2)The reference purchasing organization 2000 can be maintained with or without a company code and plant(s).
3)The purchasing organization 1000 is assigned to plant 1000.
4)Purchasing organization 2000 is maintained as the reference purchasing organization for the purchasing organization 1000 in Customizing for the Enterprise Structure .
Now suppose a vendor X is maintained for both purchasing organizations.
material M is maintained for the plant 1000.
Now A centrally agreed contract has been created without a plant by the reference purchasing organization 2000.
An employee belonging to the purchasing organization 1000 creates a purchase requisition for the plant 1000.
The purchasing department(1000) processes the requisition and carries out a source determination procedure.
The contract of the reference purchasing organization(2000) is determined as a valid source.
SO it is the contract which will be used by pur org 1000 (contract belongs to 2000).
if you want to raise a PO using ref pur org 2000 and plant 1000 then you have to assign 1000 plant to 2000.
i hope it is clear now.
regards
Yogesh

Assign reference purchasing organisation t

it is possible assign reference purchasing organization to different co.does?

Hi!
I think view V_T024Z will solve your problem
have fun
flo

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

Contract from centralized purchase organization without company code

Hi Experts.
We have six company codes
And having one centralized purchase organization and it is not assigned to any company codes
While creating contracts all company code uses this centralized purchase organization.
My question is :-
I want to create contract with above centralized purchase organization without company codes in it so while converting above contract to po we can use any one company code in the po.
How to create contract with centralized purchase organization without company code? (Later this contract can be used to convert po from any the company codes )
Please helpu2026
Thanks in Advance
Prashanth.Venkategowda

Hi,
What you need to do is:
In SPRO->Org.Structure->Definition->Materials Management->Maintain
Purch. Org. you need to "declare" all your Purch. Orgs.
In "SPRO->Org.Structure->Assignment->Materials Management->Assing
Purch. Org. to company code" you must NOT assign your corporal Purch.
Org to any company.
In the Plant assignment screen assign your corporal Purch. Org to all
the relevant Plants.
In this kind of hierarchy you make all the purchasing activities
(contracts, PO's etc.) for this purch org.
Thats all.
In the case that you have 2 level hierarchy: one corporal and many
company\plant assigned purch. orgs you need to do additional step.
After assigning a "small" purch. orgs to the plants and companies you
can assign them to "reference" Purch Org. (that not assigned itself to
any plant/company) in the ""SPRO->Org.Structure->Assignment->Materials
Management->Assing Purch. Org. to reference Purch. Org."
That kind of hierarchy allows you to make a contracts at the "reference"
org. level and use them in PO's by the lowest purch. orgs.
Hope that it will help.
Regards,
Udaya.

Advantages of a reference purchasing organization?

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