Purchase Organisation-Standard P.org and referenced Purchase Organisation
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Purchase organisation main responsibility is to maintain the proper purchase related activities and they will take care of all requirements for that plant/Company code as you assigned in the organisation structure.
Each purchase organisation has been linked to 1 plant (Plant wise) or 1 company code (Company code wise) or Client wise (1 purchase organisation for the client).
When do we maintain 1 Purchase organisation?
When we have the company worldwide and even vendors are also in worldwide who is supplying for all countries then we can maintain the centralised purchase organisation-where it controls all terms and negations for all the plants in the world.
This is the normal way for all the companies maintaining purchase organisation.
Cons: we cannot get the individual data of one country and if getting its too hard to calculate purchasing activities.
This is called centralised purchasing- once purchase organisation controls centrally for all the company codes.
When do we maintain 1 purchase organisation for 1 company code?
We will maintain the purchase organisations as per the company code, it means 1 purchase organisation = 1 company code.
Where we have many vendors, but they can provide with in the country and there was no import and export then we can maintain individual purchase organisation as per the company code.
In this case each company will be having 1 company code.
This purchase organisation will manage the all the plants in the respective company code, it means all the purchasing activities.
Same purchase organisation needs to be maintained for all the plants in that company code, in this case reporting will be easy and managing also easy but you will not get more discounts.
When do we maintain 1 purchase organisation for 1 plant?
We will maintain 1 purchase organisation for 1 plant, where purchase activities will take in the plant itself and it can control only that plant.
If we have 1000 plants around worldwide then we can have 1000 purchase organisations.
This is called distributed purchasing
When do we maintain 1 purchase organisation for 2 plants with different company codes?
As we know we cannot maintain 1 purchase organisation for 2 company codes.
Then we can get succeed through plant level, where company code A contains 1 and 2 plant with purchase organisation controlled by X.
Now, company B contains 3 and 4 plants with purchase organisation controlled by Y.
Now we need to assign 1 purchase organisation for 2 plants which was controlled by 2 company codes.
Assign plant wise, as systems allows that 1 plant can be controlled by 2 purchase organisations, then in plant wise maintain the 2-purchase organisation (Setup in enterprise structure)
So that 2 purchase organisations controls different plants with different company codes.
2.Standard Purchase organisation:
Standard purchase organisation is same as normal purchase organisation, where in normal purchase organisation the plants will not be used to other activities like consignment and pipeline procurement.
If the plants are using different procurement activities like consignment and pipeline then the plant should me maintained by other purchase organisations, in that case we can define that as standard purchase organisation.
Standard purchase organisation will control mainly for consignment, pipeline and other special procurement activities.
3. referenced Purchase Organisation:
Referenced purchase will be used for contracts and scheduled agreements purposes.
Lets think we have a contract that is having some company code and all the plants in that company code, now even some other purchase organisation also use this contract because you have some less prices in contract, then in that case we need to maintain the different purchase organisation, different company code plants we should use in contract.
We cannot maintain directly in that contract, because it will allow only 1 company code and 1 purchase organising plants only, now we need to maintain the referenced purchase organisations with purchase organisation.
Once we maintain that linking in enterprise structure then system will allow to maintain those plants in contract, and it can be released through contract to orders.
We need to do all this setting in enterprise structure.
Basics in Enterprise Structure for Learners
As a MM consultant we will not define full implementation, here client and company code will be created and maintained by FI Consultant
MM consultant will define only Plant, Storage location, Purchase organisation, Purchase group.
Plant: while we are defining new plant, system will ask for factory calendar settings number- defined by PP consultant.
Once we maintain all the assignment then we can check the flow in EC02, whether the flow has been maintained correctly or not.
If we are creating plant then we will create few plants which will be used for STO purposes then we need customer number to be maintained for Intra STO, in that case SD consultant will prepare and send it to us.
Plant: we must copy the plant as always from pre-defined plants by SAP, because we have many settings backend if we have created new but knowing is good for your knowledge.
Material Statues and Mass maintenance in SAP:
As we are creating material master will create many materials and all the tabs related to MM needs to be updated by us, in this case we have few tabs -controls the materials for many activities. For example, purchasing block, inventory block and many more.
We have options in 2 levels
1. Purchasing level
2. Client level
First, we need to define our own material status as per the client requirements in the path below.
SPRO-Logistics general- settings for key fields- define material status
Define our own name and select the level of block like only for purchasing or only for inventory or else both.
Its goods to have individual blocking codes, so that there is no clubbing.
Basic data- always in client level and if we maintain X-plant material status then it applies for whole plants in the client.
Purchasing tab- when we maintain X-plant material status then its will be applicable for only 1 plant as we maintained.
We will create lot of materials and if we get requirement to update certain fields for all those materials then we cannot do all those manually.
For those things we have mass maintenance, where we have certain T-codes from where we can do that activity.
For these things we should aware of table names MM, so that we can maintain at a time.
As per tab wise table name will get change – Material master try -MM17
For vendor master try – XK99
Note: if we don’t know that from which table, we need to maintain these things then try for T-code MASS, where select the activity as per that and process accordingly.