Define Purchasing Organization

Define Purchase Organization:

In this phase, you establish your purchasing organizations.

From the perspective of Materials Management and Purchasing, the purchasing organization oversees all procurement activities, which encompass the handling of requests for quotations and the issuance of purchase orders.

Menu Path:

SPRO-SAP Reference IMG-Enterprise Structure-Definition-Material Management-Maintain Purchasing Organization

Transaction Code:

OX08

The interface will appear as follows,



Select New Entries,



Enter a four-digit alphanumeric code in the purch.organization field, as provided KK07 and purch.org.descr. is KSN Motors P.org.

Press Enter and then select the save option.

A screen for customizing requests will then be displayed.

Next, click on the checkmark icon.



The information has been successfully stored.

Press the back button to return to the Display IMG screen.

Therefore,

The Purchase Organization: KK07 has been established.

• A purchasing organization must be connected to one or more plants.

• Additionally, a purchasing organization can be associated with one or more other purchasing organizations, referred to as a reference purchasing organization.

• A purchasing organization can be segmented into various purchasing groups, each responsible for distinct operational areas.

• Each purchasing organization maintains its own information records and pricing conditions.

• Vendor master data is unique to each purchasing organization.

• Each purchasing organization conducts its own vendor evaluations through MM Vendor Evaluation.

• Authorizations for processing purchasing transactions can be designated for each purchasing organization.

• All items within an external purchasing document, such as requests for quotations, purchase orders, contracts, or scheduling agreements, are attributed to a purchasing organization.

• The purchasing organization represents the highest level of aggregation for purchasing statistics, following the organizational unit "client."

• It also acts as the selection criterion for generating lists of all purchasing documents.