Benefits of Purchase Organization

Hi,
One of our clients want to understand the short term and long term benefits of having single or separate purchase organization for its two companies (Company Codes). What happens if they have two Pur Orgs and decide to merge into one at a later date? Will there be a gain in having single Pur Org if they have inter company stock transfers?
Anubhav

Hi,
My advice is to not think of the P org as being a department, think of it as being a "method of purchasing".
If you deal with a vendor and ALL purchases (from any company code or department) are in the same currency and the same payment terms apply and the same settings are required on the P org view of the master data, then you need only ONE P org. If this rule applies to ALL vendors in every case then you also still only need one P org.
BUT, if you have a vendor where some items or some types of purchase need to be treated differently (a different currency or a different payment terms) then having two P orgs helps because you can set up both versions of the way that you deal with that vendor by setting up the P org data diffferently for each. Then when you rais a PO you simply select the appropriate P org and the default data will be correct.
So the decision is NOT based on how many company codes you have it is based on how many different ways do you have of dealing with the same vendor.
One is best because of the master data involved, but multiple are recommended if you do purchase items in different ways from the same vendor.
there are other influencing factors but this is the main one.
Steve B

Similar Messages

  • Plant specific purchase organization - Reg.

    Hi Gurus,
    I have one qurrey.
    That is "Our client has two company codes 1000 & 2000. In company code 2000, there are 4 plant codes, which is including Head office as one plant.
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    VB Rao

    Hi,
    It all depends on how your business wants it. If they are going to do purchase from all the sites & if they have site specific vendors or if they want different reports of Purchases based on site etc.. then its all advisable to go for plant-specific since it gives a one to one mapping.
    where as if your business doesn't do purchases from all the sites or site specific vendors then you can advise to go for Central Purchase.
    If you are going for plant specific P.Org then you need to create 4 P.Orgs since you have 4 plants or else 3 if your Head office doesn't procure anything.
    Just explain benefits of both the scenarios to business so that they will be clear & can take a decision.
    Thanks & Regards,

  • 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
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  • Error while creating a PO - Please select Purchasing Organization from Head

    Hi All,
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    Sorry guys.. This is a form personalization.

  • Purchase info record does not exists in purchase organization 1000

    Hi experts,
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    Poorna.

    Hi Guys,
              Thanks for all yours responses, Actually what deepak said was right, but in my IDES system i am not able to create new entries in assign plant to std purchase org. I found the database view for that, V_001W_E its for table T001W. So i looked into that table i found that std purchase org was given as 1000. i made direct entries in that table, i thought the reason for this may be due to , that i copied plant from 1000. After making entries , i did not got the error message that was i am previously getting.
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  • Transfer data from a purchasing organization to another.

    Dear all,
    I am currently using two purchasing organizations: A and B. I don't want to use B anymore. There are source lists, purchase info records, suppliers, PRs, POs and maybe other data that are currently related to the purchasing organization B.
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    It is like a migration from legacy, only difference is that the source is your own SAP system.
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    vendors can be extended to the new organisation via XD99  copying data from the old organisation.
    material master is not purchasing org specific, hence no change needed.
    Source list an info records need to be loaded, which can be done with LSMW.
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  • Not able to get data from Reference Purchase Organization

    Hi,
        the scenario is
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    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)
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    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    
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    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
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  • Purchase organization filled  PR  not allow to change desired vendor in PO

    Hello All,
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    if you set a "Desired Vendor" in the PR, this can be copied as default value in the PO Vendor field when dragging & dropping the PR item in the Shopping Cart icon of transasction ME21N.
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    here my question is   whats is the relation  purchase organization  not allowing to change  the desired vendor  in po.
    what are  the configuration  related to this issue.
    Actually   we want  to modify  desired  vendor  in PO  irrespective  of the the purchase org filled or empty in PR .
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    Thanks and regards,
    Sathiya

    Hi
    vedor must assigned to P.Org...
    Check once that You are copying existing PR to a PO (having fixed vendor in PR)?
    And also check PO doc type settings whether vendor field is mentioned as optional/required.
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  • Creation of vendor organization at all purchasing organization level

    Dear Experts,
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    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.
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    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.
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  • Retrieve Organizational Unit ID from ECC Purchase organization ID

    hello Experts!
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  • How I restrict Scheduling agreement type for specific Purchase organization.

    Hello Experts,
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    I have search many threads but I didn't get solution.
    Is it possible through Configuration or user exit.
    Kindly give me solution in details.
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  • New Company Code and Purchasing Organization in SRM

    Hi Gurus,
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    We need your assistance on the following requirements:
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    2. Creation of new purchasing organization for item 1
    3. All related changes like creation of New view, new Web Service ID, vendor, materials, material group, CCM mapping and upload.
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    Thanks.
    Jho

    hi
    1) ppoma_bbp, TAB Function
    2) ppoma_bbp, TAB Function
    3) find the needed on help.sap.com
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  • Local Purchasing Organization in extended classic scenario SRM 4.0

    Hi all,
    I have tried to make settings for updating vendor master records. I used the following path in IMG.
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    There i wanted to make the entries for: Order, LogSystem, Flag in NoBEPchOrg and Local Purchasing Org. For the Local Purchasing Org. field i could not select any entries.
    My question now is how can I check if there is any local purchasing organization maintained. In the EBP Organizational Structure I have set the flag for the purchasing organization and have entered in the "corresponds to" the number of my purchasing organization from the backend and i have selected the SRM-System in the next field.
    Best regards,
    Bernd

    In the organization structure, under function tab leave the corresponds to field blank

  • System settings for purchasing organization PO01 incomplete

    Hi!
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    hi,
    Define Purchasing Organization data for vendor evaluations in transaction OMGL.
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    Regards
    Priyanka.P

  • Details of purchasing organization based on vendor number

    Hai experts,
    i want to write a report to extract "the address of supplier and details of purchasing organization based on vendor number"
    : For Supplier Address, i can use EKAN & EKKO table
    : for details of purchase organization means ????
    please help me..

    Hi,
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    Take the EKORG Pur Orgn field and take the details from T024E table.
    reward points if useful
    regards,
    ANJI

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