What is the referance pur org

hi gurus
what is the referance pur org ? When it can be used

Hi,
Reference purchase is the central purchase organization which will negotiate the contracts with vendors and the local purchase organizations assigned to this reference pur org will use that contact for procuring the materiial by the release orders against the contract.
Please check the following example
The reference purchasing organization RPUR, which belongs to head office , has negotiated a contract for the material 'Steel' with vendor 100001.
The purchasing organization P100, responsible for procurement in the 1001 and 1002 plants, wants to issue release orders for the material Steel against this contract.
Regards,
rambhupal reddy

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What is the referance pur org

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