This SAP article will guide you all about “How to Assign Purchasing Organization to Company Code in SAP” step by step with screenshots
Definition
The purchasing organization is an organizational unit within Logistics. Almost all business transactions related to procurement are carried out in a purchasing organization.
Use
The purchasing organization represents the procuring unit in a legal sense. The way in which you assign purchasing organizations to company codes and plants determines the procurement method.
Purchasing organizations in the R/3 System help structure procurement (external organization).
There are three purchasing methods:
- Group-related: One purchasing organization is responsible for procurement for all company codes in a client
- Enterprise-related: One purchasing organization is responsible for procurement for one company code
- Plant-specific: One purchasing organization is responsible for procurement for one plant
It is possible to combine different methods and portray them using reference purchasing organizations.
A purchasing organization can avail of the conditions and centrally agreed contracts contained in the assigned reference purchasing organization.
A purchasing organization is assigned one or more plants for which it has direct responsibility for procurement. In particular, you may assign plants that are assigned to different company codes to a purchasing organization, for example, central purchasing.
In the business transactions for a purchasing organization, you either have to enter the company code manually, for example an outline agreement, or it is derived from the relevant plants, for example an order.
Steps to Assign Purchasing Organization to Company Code in SAP
IMG Menu Path :-
SPRO > SAP Customizing Implementation Guide (IMG) > Enterprise Structure > Assignment > Material Management > Assign Purchasing Organization to Company Code
T Code :- OX01
Step 1 :- Enter transaction code SPRO in the command field and press enter
Step 2 :- Click on SAP Reference IMG
Step 3 :- Follow the IMG Menu Path and click on Assign Purchasing Organization to Company Code
Step 4 :- Click on Position and update the desired purchase organization code to find out
Step 5 :- Update the company code in the CoCd field and press enter
Step 6 :- Click on Save icon
Now, we have successfully done with “How to Assign Purchasing Organization to Company Code in SAP”.
How to Assign Purchasing Organization to Company Code in SAP
