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Reference Purchase Organization?

Former Member
0 Kudos

Dear Gurus,

What is the use of reference purchase organization.

In which case, we can assign our plant to reference purchase organization?

Pls clarify my doubts..

Accepted Solutions (1)

Accepted Solutions (1)

Former Member

Ref. Pur Organisation is used when there is no centralized pur. organisation. You have to define 1 pur. organsation as refernce pur. organisation and link other pur orgnisations to this ref. pur. orgaisation. When you create a contract using this pur. organisation and this contract can be used by other pur orgasations which are linked to this ref. pur oganisation.

Ref. Pur Organisation is basically used for better negotiation.

Eg- You are having 2 plants (A & B) of 2 different company code(A & B).

1. Pur org A is assigned to company code A & plant A

2. Pur Orga B is assigned to company code B & plant B.

3. Ref pur organisation C is created and linked to Pur organisation A and B.

Scenario -

Vendor A can supply Material A 1000 qty at Rs. 100 whereas more than 1000 qty at Rs. 90.

But your requirement for Plant A is Rs. 800 and Plant B is Rs.700

If you create a contract on plant basis to the Vendor A then you have to pay Rs. 100.

But if you create a contract with ref pur organisation C for total requirement of Rs.1500 without plant basis then rate will be only Rs.90.

Then this contract can referred by both the plant and can be converted to P.O at Rs.90.

Hope this helps you.

Regards,

Rajess Kumar.R

Answers (4)

Answers (4)

Former Member
0 Kudos

Hi Bidhu,

For Reference Purchase organization, it will be simply assigned to other normal Purchase organizations. This is useful to enjoy the corporate contracts and their price benefits.

Thanks,

Swapnil

adwait_bachuwar
Active Contributor
0 Kudos

Hi

the reference purchasing organization is used for the following purpose.

you can make the appropriate settings to enable the purchasing staff of your enterprise to work with conditions and contract release orders on a cross-purchasing-organization basis.

It is then possible for:

The conditions of a reference purchasing organization to be used by other purchasing organizations for the purpose of price determination

Several purchasing organizations to access the contracts of a certain reference purchasing organization

to make nay purchasing organization reference then it is only assigned to plants of different company codes. it is not assigned to any company code.

regards

Adwait Bachuwar

Former Member
0 Kudos

hi.

we can use reference purchase organization to mainatain same conditons entire organization.

Procurmenet at company code level can be made with this purchase organization.

outline agreements can be maintained at this purchase organisastion.

raghavendra_praveen
Active Contributor
0 Kudos

Hi

If there are 2-3 purchase organizations which are procuring for different company codes/ plant, and if you want one purchase organization to procure on behalf of others then you can maintain that one as reference organization to others. Ex: if you create contract with reference purchase organization then same can be used for other organizations. Same conditions/terms will be valid for others also.

Thanks