Reference Purchase Organization

Central Purchase-

One Purchase Organization is responsible for the procurement of all the plants in a Company Code

PO- Purchase Organization, CC-Company Code

1PO-----1CC

One PO can be assigned to only one CC. But a CC can be assigned to multiple POs

1PO----1PLANT

1PO----2PLANT

1PO---3PLANT

1PO---1PLANT OF OTHER CC

One Plant can have many Purchase Organizations and same one Purchase Organization can have
many plants

De centeral Purchase:

Each Plant will have its own Purchase Organization to handle their Procurement internally.

1PO – No assignment to Company Code

2PO— No assignment to Company Code

3PO— No assignment to Company Code

1PO---1PLANT

2PO---2PLANT

3PO---3PLANT

Reference Purchase Organization:

Central:

One Purchase Organization is responsible for all the Plants of a Company Code

Decentral:

Each Plant will have its own Purchase Organization to handle the Procurement activities.

Decentral is very good but we are facing the issues when we deal with Global and same vendor who
is procuring materials to all the Plants of Company Code 80% Decentral+ 20% Central
Reference Purchase Organization:

1PO—1PLANT

2PO- 2PLANT

3PO- 3PLANT

1PO as reference Purchase Organization and assign 1PO to other Purchase Organizations of the
Company Code

1PO has a contract with Vendor X for the value of 10000 M USD. Then this contract will be used by
any other Purchase Organization which is assigned to 1PO.