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Standard Purchase organization

Former Member
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hi,

What is the purpose of maintaining Standard Purchase organization?

Is it possible to do consignment and pipeline procurements with out Standard Purchase organization?

Thanks & Regards

Ravi

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Ravi,

As u may be aware that for consignment and pipeline material price is picked from info record

If same plant have a more than 3/4 Purchase organisations then it is always better to define any one of that as standard P org. and maintain all consignment and pipeline info record with reference to that P organisation to avoid data redundancy

there is not any hard and fast rule to have std. P org mandatory for consignment and pipeline materials u can process these materials with regular P Org. also

Vishal...

Answers (2)

Answers (2)

pratap_jk
Active Participant
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Hi Ravi,

Have u gone through the business process of any industry?

Generally everbody has several purchase organizations but the authorities are limited to some extent that might be on value based or item based.

Even in SAP has defined certain procurement should be done by standard purchase organization, so that it will be easy to keep the track.

When u several plants, u may have the requirement of the some material which might be usefull in the different areas and might not be.

In this case u cant give authorization to each and every plant Porg to procure directly.Here u require the standard org to do all procurement of these kind.

For consignment procurement it is mandatory to maintain Standard org.

Even making contracts also u need Standard Porg.

former_member581212
Active Contributor
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hi,

Std Porg is used when you have to procure from co. code to co.code....for this you make assignemnt between the plants of both co.code and both are attahced to the porgs....

In Customizing it is possible to assign reference purchasing organizations to a purchasing organization. This allows the purchasing organization access to the conditions and contracts of these reference purchasing organizations. The purchasing organization can make use of up to two reference purchasing organizations when the sequence in which it accesses conditions is determined.

Advantages of a Reference Purchasing Organization

● A reference purchasing organization can negotiate a comprehensive contract that can be used by other purchasing organizations.

The purchasing organizations responsible for procurement in the individual plants can issue release orders against this Centrally Agreed Contract, thus availing themselves of its more favorable terms and conditions.

More information on centrally agreed, corporate-wide contracts is available in the section Centrally Agreed Contract.

● SAP Application Link Enabling (ALE) allows individual companies belonging to a group but working with separate SAP systems to make joint use of contracts. In such cases, the latter are referred to as u201Cdistributed contractsu201D.

Working with a reference purchasing organization saves time and effort in maintaining data because purchasing organization data for vendor master records and purchasing info records only has to be created by the reference purchasing organization. Other purchasing organizations that are linked to the latter via Customizing can use this data without having to maintain data themselves.

Consignment and Pipeline can be done with or without Std porg...

hope it helps...

Regards

Priyanka.P