Purchasing Organization?

[Former Member]

Hi

I am studying for Terp-10 exam. In one section of SAP Terp-10 booklet stated u201CEach country in which plants operate has one purchasing organization.u201D And it the other section of the book it state each plant can have specific purchasing organization. Therefore if we have two plants in the same country, we will have two purchasing organizations. But this conflicts with previous statement. Can someone explain this please?

Thanks

Mehdi

[Former Member]

Thanks Kevin

Thanks for the clarification. It is really great.

Iu2018ve seen lot of minor mistake in three Terp-10 booklets. But this one is the major. One full page the emphasis is on single purchasing organization for each country. And in another full page is explaining each country can have more than one purchasing Organization.

[Former Member]

Hi Mehdi,

Good question. From my experience, the TERP10 book sometimes has conflicting statements, or at least confusing ones...

There are three models when looking at Purchasing Organizations. There is a enterprise level, company level, and plant level. Each company can be configured differently to utilize their Purchasing Organizations efficiently.

Enterprise Level: Can cover multiple Company Codes and is the most centralized.

Company Level: Can cover multiple plants within the same Company Code.

Plant Level: Each plant can have it's own Purchasing Organization. Its the most decentralized.

Hope it helps!

Kevin