Purchase organisation

[Former Member]

Hi experts

can u plz tell me on what basis should i decide the purchase organization

[Former Member · Accepted solution]

Hi,

You can decide it based on the Business Req.

I.e

Distributed Purchasing - Suppose you have separate Plants under a company code for which Procurement is handled separately then you have to create separate P.Orgs & assign it to your Plant

Centralised Purchasing - Suppose you have different company codes but the Procurement activities are centralised then you can use a single P.Org (Centralised) for the Procurement.

Hope its clear.

Regards,

[Former Member]

Hi,

The number of purchase organizations depends on the organization set up and requirement of the business. If the volume of operations are such high and a separate heads need look into two different aspects like imports and local then you need to create two purchase organizations.

As far of SAP is concerned you can create as many Purchase organizations and can be assigned to plant or company code. But however you have to distinguish your vendors according to purchase organizations.

Regards,

Abhee.