Purchase Organisation for Site : Vendor

[Former Member]

Hello,

A site is created for a store as well as distribution centre. A site is created as a Vendor and a Customer. This is done so that the DC can become a vendor for the Store (customer).

Now why do we mention Purchase Org to Vendor? DC as a vendor would distribute goods to Retail store, which would behave as a customer. DC does not purchase.

On the other side, Customer is assigned a sales org, but a customer(store) purchases from the vendor.

Obviously I am missing some business critical concept here.

Could anyone guide me? I am new to SAP Retail.

Thanks

[Tobias_König]

Well, as you stated "the DC can become a vendor for the Store"

So, if you want to use "vendor" specific settings (e.g. Schema Group, Vendor for determination of pricing schema) or other control data (like "Subsequent settlement"), you need master data on vendor site. This can technically only be handled via vendor assigned to DC.

Regards

Tobias

[amit_tunara · Accepted solution]

Hi Vaibhav,

Any Vendor master data will have General data, purchasing data and then financial data. When you define the purchasing data for a vendor, you must enter the purchasing organization which is a key for purchasing data of a vendor. If you have multiple purchasing organizations for different stores and if you want your DC to supply all of them, you need to extend the DC vendor to all those purchasing organizations.

Also when the store creates a transfer order to ask for new stock from DC, they create STO (Stock Transfer Order). Any purchasing document cannot be created without purchasing organization.

I hope this clarifies.

Let me know if you need any other information.

Regards,

Amit

[Former Member]

Got it..

Thanks Amit!

[joseph_demoya1]

Hello,

The reason why all sites (Store and DC) are setup with a purchasing organization is so that you can create purchasing documents. If you think of the organizational structure within SAP you have the MM side with is Company code - Purchasing Organization- Purchasing Group. on the S&D side you have Company Code - Sales Organization - Distribution Channel.

In your example you can distribute your products using the Sales Area (Sales Organization/Distribution Channel) yet when you perform a purchase order you typically buy product from a vendor and it is delivered to the DC. This is why you need to a have a purchasing organization.

Thank you,

Joseph DeMoya