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difference between purchasing organisation and purchasing group.

Hi,

What is the difference between purchasing organisation and purchasing group.

Why Purchasing organisation is require?

Tx

Uts

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5 Answers

  • Best Answer
    Sep 30, 2008 at 04:53 PM

    hi

    Purchasing Organization

    An organizational unit subdividing an enterprise according to the requirements of Purchasing. It procures materials and services, negotiates conditions of purchase with vendors, and is responsible for such transactions.

    Purchasing Group

    A purchasing group corresponds to a buyer or group of buyers who perform the following purchasing activities:

    • Procuring certain articles or merchandise categories

    • Acting as the contact for vendors

    in simple word u can say purchasing org is the purchase department and the purchasing grp is the grp of peoples with in it ,who takes care for the purchase for diffrent department

    hope it clears

    regards

    kunal

    award if helpful

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    Former Member
    Sep 30, 2008 at 02:25 PM

    Purchasing Organization is the Org sturcture of MM purchaisng where Purchasing group is represent the Buyer which used for daya to day activity of buying and for reporting purpose as well as authorization purpose

    other hand Pur org is controlling the purchisng activity

    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:

    o A purchasing organization can be assigned to several company codes.

    (= Corporate-group-wide purchasing).

    o A purchasing organization can be assigned to one company code.

    (= Company-specific purchasing).

    o 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.

    o A purchasing organization must be assigned to one or more plants.

    (= Plant-specific purchasing).

    o 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.

    o A purchasing organization can be divided into several purchasing

    groups that are responsible for different operational areas.

    o Each purchasing organization has its own info records and conditions

    for pricing.

    o Each purchasing organization has its own vendor master data.

    o Each purchasing organization evaluates its own vendors using MM Vendor

    Evaluation.

    o Authorizations for processing purchasing transactions can be assigned

    to each purchasing organization.

    o 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.

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    Former Member
    Sep 30, 2008 at 02:50 PM

    Hi

    Purchase organisation is used to identify,select vendors and negotiate prices and conditions with vendors.

    purchase organsiation will be available at top level with respect to company code and plant level.

    where as purchase group is sub level of purchase organisation. purchase group is responsible for monitoring day to day purchase order tracking and they are responsible to see that goods are available in time.

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  • Oct 01, 2008 at 03:54 AM

    > What is the difference between purchasing organisation and purchasing group.

    Purchase Organization ia an Organizational Element where Purchase Groups/ Buyers are used for Daya to Day Buying Activities. Purchase Group is only for Reporting Purpose.

    http://help.sap.com/erp2005_ehp_03/helpdata/EN/12/0841f0470311d1894a0000e8323352/frameset.htm

    > Why Purchasing organisation is require?

    Purchasing Org : Organisation within logistics which subdivides an enterprise according to purchasing requirements.

    The procurement business process uses this organisational structure:

    Client ->Company Code ->Plant ->Storage Location ->Purchasing Org/ Purchasing group

    http://help.sap.com/erp2005_ehp_03/helpdata/EN/ff/515a2849d811d182b80000e829fbfe/frameset.htm

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    Former Member
    Sep 30, 2008 at 02:30 PM

    Dear,

    Purchasing Org.

    In any company all work is done in one sequence.

    Purchasing org. is one example of work sequence.

    I give one example for u.

    Any Company there are three division.

    1) Business purchase : -Who purchase the material for company product and handle company production related purchase

    2) Project Purchase : - Who handle company building or other restructure related purchase.

    3) IT purchase :- Who purchase material for IT support.

    Then if you want to divide all three purchase in different three category you have to create three purchasing org.

    1) Business Purchase 2) Project purchase 3) IT purchase.

    Due to this you can easily control all three activity of company.

    Purchasing Group: - It is only report purpose.

    Suppose you can create one purchasing group for your raw, one for primary and one for spm.

    So you can easily get report on purchasing group base with ME2M, ME2N .

    Regards,

    Mahesh Wagh

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