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Many Purchasing Organisation assigned to 1 Plant?

Former Member
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Hi all

This is going to be an easy question for all the expert here.

While I did some reference for Purchasing Organisation and Plant assignment, I realise that PLANT and P.Org has this M:N relationship.

I interpretate M:N as

(a) 1 PLANT to many P.Org or

(b) 1 P.Org to many PLANT

Questions

1. Does my Intepreation of M:N as above correct?

2. I do not think PLANT and P.Org has this M:N means Many to Many relationship as we cannot do so in SPRO. Please comment.

3. I have been seeing this 1 P.Org to many PLANT in the reference book but there is no actual business examples given to explain and also, I cannot find any such possible assignment in Enterprise Structure -> Assignment -> Materials Management -< Assign P.Org to Plant. Please advise the actual business example of this case and the SPRO path for this.

Thanks.

Edited by: Daimos on Sep 26, 2011 8:31 AM

Edited by: Daimos on Sep 26, 2011 8:32 AM

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

You can assign a Plant to a Plant specific Purch Org OR co Code specif Purch Org.

You can also have a Purch org which is a central Purch org ( Not assigned to any company code). A Plant can be assigned to this Purch Org simultaeously.

This way a Plant can be assigned to Many Purch Orgs using the same SPRO path.

A Purch org must always be assigned to a plant if procurement to be done under this Purch Org.

Hence a Purch Org has many Plants assigned to it.

Hope this helps you

Rajesh

Former Member
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Hi all

Thanks for your reply.

Just want to confirm, which is the Centralised P. Org?

(a) Cross Plant P.Org: All plants are assigned to the governing P.Org, where as all of these plants are assigned to the same CoCd.

(b) Cross CoCd P. Org: Extension of (b) but no P.Org will be assigned to CoCd. CoCd value will be prompted for input during PO creation.

I have been under the impression that Centralised P. Org is meant for CoCd level (Cross Plant P. Org) instead of Company Level (Cross CoCd P.Org)?

Can anyone explain?

Thanks

former_member202528
Active Contributor
former_member564225
Active Contributor
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Hi all

>

> Thanks for your reply.

>

> Just want to confirm, which is the Centralised P. Org?

>

> (a) Cross Plant P.Org: All plants are assigned to the governing P.Org, where as all of these plants are assigned to the same CoCd.

>

> (b) Cross CoCd P. Org: Extension of (b) but no P.Org will be assigned to CoCd. CoCd value will be prompted for input during PO creation.

>

> I have been under the impression that Centralised P. Org is meant for CoCd level (Cross Plant P. Org) instead of Company Level (Cross CoCd P.Org)?

>

> Can anyone explain?

>

> Thanks

HI Daimos,

Central Purch Org is the one assigned to the CoCd, which is resposnsible for making Procurement negotiations for all Plants within the CoCd. All the plants will have to use the same Purch Org for their Purch Docs, and hence the reporting will be Central too. This is in the cases where the procure decision making is centrally managed (such as in Aerospace companies, very high cost procurements)

Distributed Purch Orgs where the procurements are done on geographic basis with respect to Plant's geography. A Purch Org can be assigned to multiple plants in this case.

Shiva

Former Member
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Hi Krishna

Thanks for clearing it up. Centralised P. Org is at the Company Level instead of the Company Code Level:

[http://help.sap.com/saphelp_470/helpdata/en/75/ee0a9555c811d189900000e8322d00/Image191.gif]

Here is the summary:

1. Centralised P. Org = 1 single P. Org responsible for the purchasing of several CoCd. It can be seen in Cross-CoCd-P.Org

scenario. No assignment between CoCd and P.Org is required but the value of CoCd will be prompted for input during the

procurement activity.

2. Cross Plant P.Org (terms used in SAP Certification) is also known as Company-specific P.Org.

Questions:

1. I found out in the SAP Certification Material for the scenario of Plant Specific P. Org assignment with 2 Plants under 2 P. Org respectively, we are asked to "Assign just one plant of the company code to this purchasing organization under Assignment u2192 Materials Management u2192 Assign purchasing organization to plant."

Can't we assign all the plants used (under 1 Company Code) to the individual pairing P.Org 1 by 1? Is this SAP standard config feature to ease consultant?

Edited by: Daimos on Sep 26, 2011 11:08 AM

Edited by: Daimos on Sep 26, 2011 11:10 AM

former_member202528
Active Contributor
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It depends on the type of procurement you are doing per plant.

If you have same type of activities in each and every plant under 1 company code...then assign all plant to one purchase organization.

However, thsi is just a rule to be made, so that all purchasing activities per plant will be taken care by assigned Purchasing organization. For ease of usage we will maintain central purchasing prg...if we are negotiating better conditions/delas with suppliers...and then referenceing the same to individual plants.

BR,

Krishna

Former Member
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Hi Krishna

Thanks for your reply.

I understand about Centralised P. Org.

Imagine I have 2 plants PLT1 and PLT2 and 2 P.Org POG1 and POG2, and 1 Company Code: COM1. Below will be the configuration step I will take in SPRO for a Plant Specific P. Org scenario:

1. Both plants PLT1 and PLT2 are assigned to Company Code: COM1

2. I assign PLT1 to POG1 and PLT2 to POG1

3. Then I assign POG1 to COM1.

But my question is that why for the plant specific P.Org design, it is suggested by SAP in their certification material as "Assign just one plant of the company code to this purchasing organization under Assignment u2192 Materials Management u2192 Assign purchasing organization to plant."

Is it a practice for such?

former_member202528
Active Contributor
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If you want different purchase orgs for different plants (under same company code), then just assign plant to purchase org.

BR,

Krishna

Former Member
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Hi.

I do not want different plants different P.Org. What I want is the answer for the following:

Imagine I have 2 plants PLT1 and PLT2 and 2 P.Org POG1 and POG2, and 1 Company Code: COM1. Below will be the configuration step I will take in SPRO for a Plant Specific P. Org scenario:

STEP 01.

Both plants PLT1 and PLT2 are assigned to Company Code: COM1

STEP 02.

I assign PLT1 to POG1 and PLT2 to POG1

STEP 03.

Then I assign POG1 to COM1.

But my question is that why for the plant specific P.Org design, for STEP 02 it is suggested by SAP in their certification material as "Assign just one plant of the company code to this purchasing organization under Assignment u2192 Materials Management u2192 Assign purchasing organization to plant."

Is it a practice for such? and why so?

Edited by: Daimos on Sep 28, 2011 11:58 AM

Former Member
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I believe SAP is tryin to establish that you can assign Plant 1 from co code A and Plant 3 from co code B to the purchase organisation XX01. This is a purpose of using the purchasing organisation this way i.e 1 Purchasing organisation is responsible for procurement of plants belonging to 2 co codes. I have performed this business scenario configuration multiple times.

I have not seen practically but theoretically Purchase organisation XX02 can be responsible for Plant 3, i,e Plant 3 assigned to Purachse org XX02

Let me know if this doesnot answer

Vijay

Answers (2)

Answers (2)

Former Member
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sir,

iam new to these forum.iam trying to be MM Consultant

my question is:

the organizational levels are:client,company code, plant, storage location,purchase organisation.

there are 3 types of data 1.masterdata 2.transactional data.3.configurational data

these 3 types of data are created at diffetent org levels like MMR created at Company,purchase org, plant

andvmr,source list at different levels

my question is what ever data is created in any organizational level , will it be stored at client level.for example:source list is created at palnt level for a material.will the data relating to source list will be stored in client level also or client level has only access to it.

JL23
Active Contributor
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it can be done both ways.

the purchasing organisation just reflects the real organisation how a company does its procurement and supports reporting purposes.

if your purchasing department is located at the headquarter and does centralized procurement for all plants (even cross company) then you might just have one purchasing org and many plants.

if this purchasing department is splitted into purchasing of direct materials and purchasing of MRP, then you might have 2 central purchasing organisations that both support all plants.

contrary each plant could procure for itself, with purchasing departments on site. so you would have 1 plant specific purchasing organisation per plant.

And if this purchasing department is splitted into purchasing of direct materials and purchasing of MRP, then you might have 2 plant specific organisations for one plant.

All this can be created in Enterprise Structure -> Assignment -> Materials Management -> Assign P.Org to Plant.