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

Similar Messages

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 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

SRM - Centralized Purchasing Organization

We have Centralized Shoppers Organization Structure where they have one plant attached to each of their profile at this time inheriting from the header node . With our highlevel reorganization within the company , shoppers will be now shopping for multiple Plant Codes.
How can we set-up their profile to accomadate multiple plant codes and how can we mitigate the risk of not selecting the right plant code in a shopping cart ? Eg I have 3 plant codes 1000 , 2000 and 3000. And now its defaulted to 1000 and the shopper is shopping for 2000 how can we make sure that they are selecting the right plant code .
is there a possiblity of pulling the plant code from the Cost Center or any cost object i select in the plant code ?? or any other designs used commonly around teh Central Purchasing Organization.
Any inputs appreciated .
Edited by: Priyalakshmi Bhuvanendran on Jun 15, 2010 10:28 PM

Hi there,
Regarding "pulling the plant code from the Cost Center"
You could code this in the DOC_CHANGE_BADI so that it would automatically be inserted.
You could use the DOC_CHECK_BADI to do the checks, i.e. you could set up a check on what cost centre has been entered and if the incorrect plant has been inputed then put out an error message.
Hope this helps,
Kind Regards,
Matthew

Centralized purchasing organization

I have created several purchase organization for a company code and purchasing activities all happened in each purchasing org. Now i wanted to make it as a single (centralized) purchasing unit? What are the prerequisites that we should take in to account and what configs are required to make it as single without disturbing the business process?

hi kumar,
I am afraid this would not effect your previous documents but would work from future purchase orders you create.
Regards,
Sagnik

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

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

SRM 7.0 Central Contract-For Centralized Purchasing Scenario

Hello Experts
Is it possible to set up a corporate (read Centralized) Purchasing strategy, where in One Central purchasing organization creates and manages Central contracts for various Plants assigned to different company codes using SRM 7.0 with ECC Backend?
Tried to set this scenario up by assigning Purchase organization directly to Plants (in ECC) but the Contracts were failing during replication in ECC.
Any inputs on this are appreciated.
Thanks
Raman.
Note: Contracts went through successfully in ECC after assigning the Purchasing organization to Company code.

Hi,
Please check this.
SPRO -> Enterprise structure -> Assignment ->
Logistics - General -> Assign Plant to company code.
Assign plant to company code
In the IMG activity "Assignment Plant - Company Code" you assign each plant to a company code.
A plant can only belong to one company code.
Note
Complete functionality of the system can only be ensured if the plants assigned to a company code are only those situated in the same country as the company code.
It is therefore recommended that you also create a company code for each country in which a plant is situated.
Examples
Only then are tax postings created when transferring stock between plants in different countries.
The taxation procedure and Intrastat declaration are supported only for the country of the company code.
Requirements
Before you can assign plants to company codes, you must define the valuation control.
You may change the valuation control in the production system only after contacting your SAP consultant. Changes may cause inconsistencies in documents.
Actions
Assign your plants to company codes.
Regards,
Masa

Contract from 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 )
But now while creating contract it is asking company code .
Please helpu2026
Thanks in Advance
Prashanth.Venkategowda

Hi,
You can solve this query by using reference pur org.
Assign reference pur org to company codes and plants.Assign pur org to reference pur org.
for configuration settings please refer the below links.
http://sap.ittoolbox.com/groups/technical-functional/sap-log-mm/purchasing-org-assigment-to-multiple-company-codes-plants-1041710
Making centralized contract
Hope it helps you.
Thanks.

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Hi,
In case of central purchase organization assignment to company code is not required.
Regards,
Manish

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

How do we link the central organizational unit and purchase organization i

hi friends
How do we link the central organizational unit and purchase organization in SUS configuration?
regards
vinaykrishna

The workflow process is associated to the transaction you select by parameters in the function call.
The Responsibility 9e.g. employee self service) is linked to a menu. The menu contains (amongst other things) functions. If the function is associated to a menu prompt, then when the user clicks on the prompt (e.g. Change Job) the function is invoked. When the function is invoked, it calls the workflow described in the function call.
The function will already (out of the box) point to a workflow process. If you have customised your own process, you will need to amend the function call to call your workflow name.
Look at the function in question and you will see what I mean.
Hope that helps explain it!
Regards
Tim

Missing Purchasing Organization on Vendor master record

We have a vendor(s) that was created without a purchasing organization.
Is there a way to update the Purchasing Organization on a vendor master record if the purchasing organization field was left blank when the vendor was orignally created?
What are the ramifications of creating some vendors with a purchasing organization and others without?

Will,
You will need to extend the vendor to the purchasing org. using MK01 or XK01. The vendor master can be maintained centrally (XK01) or purchasing data (MK01) and accounting data (FK01) can be maintained independently. That is the reason SAP has provided 3 separate transactions.
If you need to use the vendor for purchasing functions (eg. create a PO), then the prerequiste is that you will need to maintain the vendor for all valid purchasing organizations. There are no other ramifications as such.
Hope this helps.
H Narayan

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

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.
We created one purchasing organizaton related to company code 2000 as a central level pur. org.
Is it better to create one more purchase organization of each plant specific for carryout purchase activities at plant level.
or can we go for one common purchase groups for all site level procurement.
kindly suggest at the earliest.
Regards,
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,

Centralized purchase organization

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