reference purch org

[Former Member]

HI

I want to know in which business scenario Ref purch org is used.

I searched over sdn but not satisfactory 

pls explain with example

thanks

[Former Member · Accepted solution]

Ref pur org can be used when there is a requirement to maintain purchasing with two options aka purchase are with respect to plant as well as company code level purchases.

Here a n purchase orgs are responsible for say n plants hence assigned to plants, apart from which one or more pur orgs are  maintained as ref pur orgs where it is responsible for higher level purchases say entire company, hence these ref pur orgs are assigned to comp code as well as pur orgs for respective plants.

C.Code	Plant	Standard P.Org	Ref.P.Org
1000	1100	1100	1001
1000	1200	1200	1001
1000	1300	1300	1002
1000	1400	1400	1002

In this scenario Ref P.Org 1001 is serving for two plants through standard P.Orgs 1100 and 1200 and Ref P.Org 1002 is serving for two plants through standard P.Orgs 1300 and 1400.

So now those materials/services common for plants 1100 and 1200 can be maintained through 1001 and those materials/services common for plants 1300 and 1400 can be maintained through 1002.

Hence 1001 and 1002 have combined value to procure for two plants and hence can negotiate prices and terms and conditions and procure quite effectively when compared to individual Standard P.Porgs 1100, 1200, 1300, 1400. as they would split the overall requirement.

Where as when there is a material/service confined to a particular plant only then Standard P.Orgs can take care of it.