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Reg.Purchase organization

Former Member
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Dear Friends

I am confuse with the below things

1. Purchase organization

2. Std purchase organization

3. Reference purchase organization

4. Centralised purchase organization

5. Decentralized purchase organization

my understanding is : Reference purchase organization would not procure, std purchase org handle consignment,stock transfer,pipeline. If so what is the role of purchase orgaziation not std purchase organization.

Centralized purchase organization - procurement process for one particular plant where as why we have to assign the purchase organization to plant and company code, otherwords, for company code specific pur.org we assign for both plant and company code.

Pls advise me.

Thanks

Rajakumar.K

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Answers (2)

Answers (2)

Former Member
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Hello,

Purchase organisation : A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions.

Standard Purchasing organisation:standard purchasing organization that is generally (that is, across other purchasing organization boundaries) responsible for pipeline procurement, consignment, and stock transfers.

In the process of source determination for stock transfers and consignment, the system automatically uses the standard purchasing organization.

Reference Purchasing Organisation: It is reference for all the other existing Purchase Organisation.

It is not assigned to either to plant or comp code.The contracts, terms and conditions can be utilized by other

Purchasing organisation.

Centralise Purchasing organisation: Having a centralized purchasing organization, a company can review its total purchasing and select vendors that can provide a majority of items at the best costs.

Hope the information was useful

Regards

Former Member
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Hi Raja

Try to imagine as per below..

Std PORG:If several purchasing organizations procure for a certain plant, you can designate one of them as the standard purchasing organization for the transactions pipeline, procurement, consignment, and stock transfer. In the source determination process for stock transfers and consignment, the system then automatically pulls this standard purchasing organization. In the case of goods issues of consignmentand pipeline materials, the purchasing info records of the standard purchasing organization are read.

Reference PORG: You can use a reference purchasing organization to facilitate cross-purchasing-organization procurement transactions. It is possible for other purchasing organizations to use the conditions of a reference purchasing organization for price determination purposes. Similarly,it is also possible for several purchasing organizations to be allowed access to the contracts of a certain reference purchasing organization.

Centralized PORG: A Centralized PORG purchases for all the plants across all the company codes, therefore as a rule the central purchasing dept. of a corporate group is not assigned to any company code.

Decentralized PORG: This can be as per the requirements e.g suppose you have two company codes assigned to one company. then u can view decentrailzed PORG as two PORGs responsbile for these two comapny codes. (but for all the plants under each of the two company codes)

Hope this would help clear somewhat.

Regards