Purchase Organization

[Former Member]

Hi,

On which basis we should decide about purchase organization, plant company code etc. I mean for organizational structure.

John Lobo

[former_member581212]

hi,

In addition to the above literature....

> It totally depends on the companys strcture....How many plant they...storage location at which they store the materials....How many Porgs they need for the Purchasing activities of the material....

> Whether you procure centrally or locally...on it depends whether Reference Porg is req. to formaed or not...If this is required then only the links are provided between the plants of those Co.codes....

Hope it helps...

Regards

Priyanka.P

[former_member335885]

Hi,

Purchase Organisation - The number of purchase organisations creation will be depend upon the organisation set up and requirement.

If the volume of opearations are such high and a separate heads need look into two of the aspects like imports and local then you need to create two purchase organisations.

As far of SAP is concered you can create as many Pur Orgs and can be assigned to plant or CC or make them not assigned. But however you have to distinguish your vendors and to be created for the purchase organisations.

Company Code - Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit and loss statement.

Organizational Levels

The structure of an enterprise is represented in the SAP R/3 System by the following organizational levels:

Client

A grouping or combination of legal, organizational, business and/or administrative units with a common purpose.

Example: a corporate group.

Company code

This level represents an independent accounting unit within a client. Each company code has its own balance sheet and its own profit and loss statement.

Example: a subsidiary company, member of a corporate group.

Plant

Operational unit within a company code.

Example: production facility, branch office.

Purchasing organization

An organizational unit responsible for procuring materials or services for one or more plants and for negotiating general conditions of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions.

Purchasing group

The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities.

A purchasing group can also act for several purchasing organizations.

Thanks & Regards,

Kiran

Edited by: Kiran. V on Oct 2, 2008 4:49 AM