Central Purchase organisation

Hi,
We have a scenario as below;
We have a central purchasing organization from which we will procure the import material in bulk for several plants. Please note that at the time of procurement we will not be knowing the exact requirement for each plant.
At the time of keeping the goods in Customs Bonded warehouse, we do not file the bill of entry & customs duty is not paid. Bill of entry is filed once we clear the goods from the Customs bonded warehouse.
Here in this case how we can handle this scenario in SAP.
Could you please suggest?
Thanks in advance.....

Hi
If you have central purchase organization lets say located at X place and then they are distributing import materials to various plants then inorder to capture the expenses ,you do
1) Create plant code for place where your central purchase org people are seating.
2) Procure material i.e. import at this plant level i.e. create PO and GR at this plant level
3) now you can transfer imported materials from this plant to respective plant via STO or STO with billing
which ensure that your expense at plant and company code level is taken care.
Please check this may you find useful.
Kishor

Similar Messages

User assignment to purchasing organisation and purchasing groups

Dear Experts,
My issue is related to user assignment to purchasing organisation and purchasing groups.
According to the project requirement, we are using central purchasing organisation and we should create the purchasing organisations and purchasing groups locally. it is not reflected from the back end systems through RFC.
Also we have one more team working with indirect materials and they also use SRM. They have already created the organisation model. Two projects are inter-related and belongs to same department in the company, but main different is one uses direct and the other in-direct materials.
Now we should create our purchasing organisation and purchasing groups and assign the users to it.
If we create it separately means not uder the main root and assign the users, we are able to create shopping cart till the contract. But when i create the new purchasing organisation and purchasing groups under the main root which is created for other project which deals with in-direct materails, i am not able to create shopping cart with the user. I am getting the error
' Process scheme could not be found
Please let me know how to deal with this scenario. here i need to add the purchasing organisation and purchasing groups under main root because of the reason that in the other project, purchasing organisation and purchasing groups defined needs to be accessed by our users as well. I mean the users should be able to access all the purchasing organisation and purchasing groups created under root node which gets the purchasing organisation and purchasing groups from the back end systems and the purchasing organisation and purchasing groups we created manually since we cant get it from back end system since it is central purchasing organisation.
Please asvise
Best regards,
Srinath
Edited by: srinath_Vijaya on May 27, 2010 4:21 PM

Hello Masa,
Thanks very much for your time and solution.
Actually the problem was something else and was fixed.
The reason for getting error 'Process schema was not yet defined' is because of missing definition of process schedma for the workflow since the process based workflow setting has been activated.
So this has been resolved by copying the sap standard customizing BC set for SRM workflow using transaction SAPR20 and then process schema for workflow got configured or copied automatically from SAP BC set and the error was removed.
Also the reason for error with user was that no purchaser assignment was done to the purchasing organisation and now it has been done and the users can access the SRM and create shopping cart and the contract.
Regards,
Srinath

Purchasing organisation

What is the difference between Reference Purchasing organisation and Central Purchasing organisation.

Vishal
See these examples
Reference Purchasing Organisation
A purchasing organization whose conditions or contracts other purchasing organizations linked to it may access and use.
A reference purchasing organization can make especially favorable conditions or contracts available to other purchasing organizations.
Example
http://help.sap.com/saphelp_47x200/helpdata/en/0b/ecb237e29bc368e10000009b38f8cf/frameset.htm
Central Purchasing Organisation
Centralized/Distributed Purchasing
You can organize your purchasing function in the following ways:
Centralized purchasing, with just one purchasing organization
Distributed purchasing, with a number of different purchasing organizations each responsible for different plants
You could also look this configuration on How to maintain Purchase Organisation
Maintain purchasing organization
In this step, you set up your purchasing organizations.
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 to Assign 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.
Note
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.
Recommendation
Purchasing organization 0001 is already preset in all dependent tables.
SAP recommends that you retain this number if you require only one purchasing organization.
You will then have to customize only a few tables.
Hope this helps
Thnaks
Sat

Cetral Purchasing organisation

Hi,
We have a Import scenario as below;
We have a Central purchasing organisation. We will procure a imported material from central Purch org for three plants together( Here we will not be knowing the quantity for each Plant).
The process is as below;
Import PO creation from one of the plant with central purchasing organisation.
MIRO for the customs duty
MIGO at the PO created Plant
J1IEX
Now we will trasnafer the required material quantity to other two plants. However we will not be able to capture the Customs duties in other two plants.
How to handle these types of scenarios in SAP.
Could you please suggest.
Thanks
HSP

Hi,
Avail the full custom duty in the main plant where the material is unloaded.
Take into the stock .Raise Stock Transport order from the main plant to the other plant witth the ED and avail the ED in the receiving plant
Noramlly this is the procedure we followed in our company. in the same CPO (Central Purchasing organisation)
Please check up with your excise dept .
G.Ganesh Kumar

Centralized purchase organization

Dear All,
we have the scenario that one centralized purchase orgnaization is there which is responsible for the negotiation with vendor so after negotiation with vendor they will create the contract and this can be used by other purchase orgnizations. Now system is not allowing to create the conract without company code (ME31K) and when we refer this contract in the PO it should not allow to change the price in purchase order whether this can be achived? we have different plant assigned to different company codes.
Regards
Ramakant

Hi,
Create a Centralised Purchasing organisation - CPO in SPRO
In the assignment
Assign --CPO to the company code
Assign -CPO to the different plants say PLT1 ,PLT2 Etc
Create Purchasing info record for the material and plant combination
Now create a Contract and check
Regards
Ganesh

Purchase Organisation assignment

hi friends,
i have 3 company codes..each company code have 4 plants..and only one purchase organisation..
this pur.org is handling all purchases..(standard,subcontracting, Sto)
where can i assign this pur. org...????
what is Standard pur. org ???
what is reference pur .org??
what is central pur. org???
thanks
raj

HI
For the assignment follw the below path.
Go to SPRO> EnterPRise Structure>Assignment>Logistic general>Assign plant to company code
Check in this ,to chich COmpany code the Plant is attached to .
Know go to
Go to SPRO> EnterPRise Structure>Assignment>Material Management>Assign Purchase org to company code
Know check that the Plant and Purchase Org should be to same company code
if they are so yes then only we can link this Purchase org to the PLant as below
Go to SPRO> EnterPRise Structure>Assignment>Material Management>Assign Purchase org to Plant
Know comming to your questions.
Standard Purchase org.
If in the above config if we have defined Multiple Purchase org to one Plant.
then in some transaction for automatic flow it always required to have one Purchase org standard one
so for acheiving the same we will maintain this config at
SPRO> Enterprise Structure>Assignment>Material Management>Assign Standard Purchase org to plant
Reference Purchase Org.
IN some cases if in a company ywo Purchasing Deparent working for two purchassing Org want some data in common like the Pricing Procedures or conditions maintained.
to make this flexible and easy
we define one Master Purchase org as the refrence Purchae org ,which acts as reference to all purchase orgs and it has all conditions maitained in it .
Central Purchase org. Sorry to say that i dont /heard abt one.
let me know the path where i could fine the same.so that i would try to help you .
regards
Anjanna

Relation between a Purchase Organisation and Reference PORg

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.

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.

Purchase organisation

hi to all
i have one doubt. plz explain
step 1 : I assigned purchase organization to company code
step 2 : also assigned all plants belongs to company code to purchase organization
why two steps are needed. only step 2 also enough to procure all plants with single purchase organization. what is the nead of assignment of purchase organisation to company code?
pl explain
thanks and regards
ravi

Hi Ravi,
As Company Code can have a several Purchase Organizations,
Company Code is a legal entity and independent accounting unit in SAP. The balance sheets required by law and profit and loss statement are carried out at company code level.
A purchasing organization is an organizational unit that negotiates purchases on behalf of one or more plants. Purchasing organizations can be plant specific or cross company. The purchasing organizational structure can be used to determine whether purchasing is centralized or decentralized. 
So you need to Assign Purchasing Organization to Company Code and the Plants to purchasing organization.
Regards
Rehman

Very imp purchase organisation and group

please provide me the exact differences between purchase organisation and purcahse group.
regards

Dear,
A purchasing group is a key for a buyer or a group of buyers who are responsible for purchasing activities. The purchasing group is not assigned to other units of the enterprise structure in SAP R/3.
Purchasing organization is an organizational unit within logistics that subdivides the enterprise according to the purchasing requirements.
A purchase organization procures materials or services, negotiates conditions of purchase with vendors, and assumes responsibility for these transactions.
You can incorporate purchasing into company structure by assigning the purchasing organization to a company code and to plants. This means you can take into account whether purchasing is organized on a centralized or decentralized basis in your company. You can have a combination of these two also.
You can assign several purchase organizations to one company code. However a certain purchase organization is belongs to only one company code.
You can decide not assign a purchase organizations to company code in case of cross-company purchasing.
You can assign several plants to a purchase organizations and one plant to several purchase organizations.
For plant specific purchases, a purchase organization is purchase materials to only one plant.
If a purchase organization is to procure materials or services for several plants in a company code, you can set up a cross-plant purchasing organization within the company code. To do so, you assign the purchase organization to company code and after this you assign the plants for which the purchase organizations are to be responsible.
If a purchase organizations is responsible for procurement for all plants of a company code, the above setting not enough, but you must always assign the plants to a purchasing organization that is to procure for them.
However, assignment of purchase organizations to a company code is not necessary.
If you want to assign cross-company code purchasing, you must not assign the purchasing organization to any company codes in customizing.
Regards,
Syed Hussain.

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

Reference Purchasing Organisation in SRM

Hi there,
do you have any idea how to build a reference purchasing organisation in SRM? This reference purchasing organisation shall be used in MM for storing contracts centrally.
But as SRM shall be implemented as well a little bit later I would like to evaluate the impact. What is your experience with it?
Furthermore the question: Is it possible to assign 1 purchasing group to several purchasing organisations? Or must there be a 1:1 relationship in SRM? (in MM not necessary).
Thanks and regards
Britta

Reference pur. org. is created in the same way as pur. org. One has to assign pur. org. to ref. pur. org. to use the contracts created for ref. pur. org.
Pur. group is free floating entity in MM and has no linkage with pur. org.
Regards,
SAmeer

Two purchasing organisations for one user

Hi Experts,
We are running SRM 4.0, extended classic scenario with a large international setup.
I have an issue with purchaser that need to be able to shop for two different pur. orgs. in two different company codes (A & B).
I have added both A & B in the Company Code attribute for the user.
And I have made both the local purchasing groups for A & B responsible for the purchaser.
When I create a SC I can select whether to use Company code A & B and I can select the matching Purchasing Group. When I finish the shopping cart the order is created in SRM with correct the Local Purchasing Organisation which the Pur. Group I chose belongs to.
But when it is tranfered to R/3 it is allways assigning pur. org. A. (also if the order in SRM has local pur. org. B). This results in a error, if the purchase wants to make a purchase for Company B.
Is it not possible in SRM to able to chose more than one backend pur. org.?

Hej igen, Anders.
I don't suppose you have found a solution here?
What I was thinking is, that you should try using the GUID of the purchase order from SRM and use it in the function module BBP_PD_PO_TRANSFER_EXEC_V2 to test which data are getting sent from SRM to R/3. You know you can find the GUID of the PO from transaction BBP_PD with BUS2201, and this GUID is the only thing needed to test the function module. This FM is sending your shopping cart/PO data from SRM to R/3, so if you can debug this to see that here the p org is correct, you would know that the error occurs in R/3.
On the other hand you could also see in BBP_PD for the purchase order in SRM if the p org is already wrong here?
Cross buying is possible, so hopefully you get to find your error. Otherwise post a reply here, we'll figure something else out.
BR
Dennis

How can we default a Purchase Organisation in the PR generated through MRP

Hi,
How can we default a Purchase Organisation in the PR generated through MRP
(This is a Auto generated PR when the MRP Run is taken)
We take a MRP Run for CBP. After the MRP Run system Auto generates a PR. But this PR does not have the P.organisation mentioned in it. It has to be done manually.
How can we Default the P.Organiastion in the PR.
NS

The Purchasing Organization is only filled in the Purchase Requisition
when a source is assigned because it represents a source of supply.
Please also refer to attached note 206684 for more information.
When executing a MRP-run, it is checked first if there exists a quota
arrangement, the source list is read after it and the purchasing
organization is taken from the source list. But before filling
the relevant field in the purchase requisition (EBAN-EKORG), the
system checks if there exists a record in the source list which is
RELEVANT TO MRP, which means that the parameter 'MRP' has to be set to
'1'.
So please ensure that MRP = 1 in ME01 for the existing records and start
the next planning run with planning mode = 3 and check the results.

Delivery Quantity Control at Purchase Organisation Level

Hi All,
In this scenario, I would like to have a control on the Delivery quantity by a vendor.
Quantity released: 100 pcs for Vendor ABC
Total Number of Plants: 3
Out of this 100 pcs, it can be delivered to any of the 3 plants by vendor ABC. Quantity delivered by vendor to these 3 plants should not exceed 100 pcs in total. How can we have a control for total released quantity at Purchase Organisation level.
Breakup of quantity to be delivered to each plant cannot be given as releasing is done at corporate level.
We checked same scenario by using purchase Info record maximum quantity field. We created purchase info record at Purchase Organisation level.
Scenario 1. which i tested
Maximum Qty:100
PO creation
Plant 1: 100 qty-- No error/warning
Plant 2: 100 qty-- No error/warning
Plant 3: 101 qty-- warning maximum qty exceeded than 100 pcs.
Above scenario will not help me as I need to total release control on all plants together.
Scenario 2. Expected
Plant 1: 60 qty-- No error/warning
Plant 2: 45 qty-- Error, Total released qty exceed by 5 pcs.
Thanks and Regards,
VV

Hi
You cannot do GR for a plant which is not given in Purchase order. Corporate level you can have contract but not Purchase orders. If you have reference purchase organization create a corporate contract and try creating a po against that contract.
regards
Antony

Questions regarding creation of vendor in different purchase organisation

Hi abap gurus .
i have few questions regarding data transfers .
1) while creating vendor , vendor is specific to company code and vendor can be present in different purchasing organisations within the same company code if the purchasing organisation is present at plant level .my client has vendor in different purchasing org. how the handle the above situatuion .
2) i had few error records while uploading MM01 , how to download error records , i was using lsmw with predefined programmes .
3) For few applications there are no predefined programmes , no i will have to chose either predefined BAPI or IDOCS . which is better to go with . i found that BAPI and IDOCS have same predefined structures , so what is the difference between both of them .

Hi,
1. Create a BDC program with Pur orgn as a Parameter on the selection screen
so run the same BDC program for different Put organisations so that the vendors
are created in different Pur orgns.
2. Check the Action Log in LSMW and see
3.see the doc
BAPI - BAPIs (Business Application Programming Interfaces) are the standard SAP interfaces. They play an important role in the technical integration and in the exchange of business data between SAP components, and between SAP and non-SAP components. BAPIs enable you to integrate these components and are therefore an important part of developing integration scenarios where multiple components are connected to each other, either on a local network or on the Internet.
BAPIs allow integration at the business level, not the technical level. This provides for greater stability of the linkage and independence from the underlying communication technology.
LSMW- No ABAP effort are required for the SAP data migration. However, effort are required to map the data into the structure according to the pre-determined format as specified by the pre-written ABAP upload program of the LSMW.
The Legacy System Migration Workbench (LSMW) is a tool recommended by SAP that you can use to transfer data once only or periodically from legacy systems into an R/3 System.
More and more medium-sized firms are implementing SAP solutions, and many of them have their legacy data in desktop programs. In this case, the data is exported in a format that can be read by PC spreadsheet systems. As a result, the data transfer is mere child's play: Simply enter the field names in the first line of the table, and the LSM Workbench's import routine automatically generates the input file for your conversion program.
The LSM Workbench lets you check the data for migration against the current settings of your customizing. The check is performed after the data migration, but before the update in your database.
So although it was designed for uploading of legacy data it is not restricted to this use.
We use it for mass changes, i.e. uploading new/replacement data and it is great, but there are limits on its functionality, depending on the complexity of the transaction you are trying to replicate.
The SAP transaction code is 'LSMW' for SAP version 4.6x.
Check your procedure using this Links.
BAPI with LSMW
http://esnips.com/doc/ef04c89f-f3a2-473c-beee-6db5bb3dbb0e/LSMW-with-BAPI
For document on using BAPI with LSMW, I suggest you to visit:
http://www.****************/Tutorials/LSMW/BAPIinLSMW/BL1.htm
http://esnips.com/doc/1cd73c19-4263-42a4-9d6f-ac5487b0ebcb/LSMW-with-Idocs.ppt
http://esnips.com/doc/ef04c89f-f3a2-473c-beee-6db5bb3dbb0e/LSMW-with-BAPI.ppt
Reward points for useful Answers
Regards
Anji

Central Purchase organisation

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