Knowledge Management

Question:
Hi,
What is a reference purchase organization? when can it be used?
And what's the exact meaning for a purchase organization in PO?
_________________
Regards,
LEE
Answer:
Purchasing organization
An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions.
Ref Purchasing Org creates Contract and it is at the corporate/client level. Now, that contract is used by the respective Pur Org at the Company Code level.
Now if you want to procure Computers for all the company code then you can do that like this:
Suppose you have plants 1, 2,3,4. and company code a,b,c,d. Pur Org you have P1, P2, P3 and P4.
Assign 1 to a, 2 to b, 3 to c and 4 to d. one plant has to be assigned to one company code.
Now in PO, plant comes in the item level, that means you have to buy the material for a plant which belongs to a company code.
Now you can assign one or more plants to one pur org. like 1 and 2 to P1, 3 to P2 and 4 to P3 and 1,2,3,4 to P4.
Now don't assign pur org P4 to any company code. that means P4 can procure for all plants across all company code.
Now you can raise a PO for all company code through P4. But this can be done for respective plants.
Now you can create another Pur Org P5 and assign p1 to P4 to P5. and keep a contract at P5. That means the contract can be used by any Pur org to procure computers for respective plants.
Answer:
super answer!
thank you.
_________________
Regards,
LEE
Answer:
Hi,
If you are not assigning the purchasing organization to any company code, then make sure that you will have to default the plant location when maintaining the contract/outline agreement for this purchasing organization. Otherwise, the error message will appear.
Cheers,
HT
_________________
Moderator:

Answer:
Hi Svetja, HT
Just curious to know more about central Porg which is not assigned to any company code.. In the example P5. where in IMG P1 to P4 are assigned to P5?. Contract exists at P5 level for a material and vendor..
Now if for a local plant say 1 , Porg P1 is responsible for procuring material..
when a Planned order is converted to PR will this contract at P5 level defaults into PR. Also when PR is converted to PO, will the prices from central contract defaults into PO?
Thanks for the clarifications
Mithun
Answer:
Hi,
where in IMG P1 to P4 are assigned to P5?.
Check in Transaction OMKJ.
Cheers,
HT
_________________
Moderator: