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Types of Purchase organization

Ragunath
26 May 0 0

Types of purchase organization. 

1. Plant specific

Plant specific purchase organization will be assigned specific plants, and it will procure material only for those plants. This purchase organization will not acquire the material for all the plant attached to the company code. 

In the above example, the Purchase org will procure only for Plant B and it will not procure for plant A. This is called as plant-specific purchase org.

2. Company  code specific:

This purchase org will procure material and service for all the plants which are assigned to the company code. Ex if ten plants assigned to company code then this pur org will purchase the material for all the plants attached to the company code. 

3. Reference purchase organization.

Reference purchase org will act as the head office. The reference purchase org will do all the contract and negotiation activity with the vendor.  Whenever the normal Purchase org procuring material, it will always refer the Reference purchase organization. 

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