Monday, October 3, 2022

Types of Purchasing Organizations in SAP MM

                         A purchasing organization is responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with suppliers. The purchasing organization is a required field and assignment for all main purchasing  documents. If a plant needs to be able to procure items, it must be assigned to one or more purchasing organizations.

Purchasing organizations can be assigned as one to many, one to one, or even many to one for organization structure areas such as company codes and plants.



The different assignment options between the company code, plant, and purchasing organization yield the following categories of a purchasing organization:

Plant-specific purchasing organization

Cross-plant purchasing organization

Cross-company code purchasing organization

 

Plant-Specific Purchasing Organization:

In a plant-specific procurement, a purchasing organization is responsible for procuring materials for a single plant.

 


Customization: 

Ø  Assign a purchasing organization to a company code under

AssignmentMaterials Management Assign Purchase Organization to

Company Code .

 

Ø  Assign one plant of the company code to this purchasing organization under

AssignmentMaterials ManagementAssign Purchase Organization to Plant .

 

Cross-Plant Purchasing Organization:

If a purchasing organization has to procure materials and services for several plants

belonging to a company code, you can set up a cross-plant purchasing organization for each company code.

 


A company performs the following steps to set up cross-plant purchasing:

1. Assigns a purchasing organization to the desired company code.

2. Assigns the plants for which a purchasing organization is responsible.

 

Cross-Company-Code Purchasing Organization:

When setting up cross-company-code purchasing, the purchasing organization must not be assigned to any company code(s) in Customizing. When we create a purchase order, the system will ask us to enter the company code for which we want to procure the material.





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