SAP MM- How to Define Purchase Organization in SAP

Purchase Organization is the highest level of organizational unit in SAP MM, it is responsible for procurement
of materials and services from an external vendor or internal plant. The different types of purchasing
organizations in SAP are

Plant specific or local purchase organization

Cross plant purchase organization
Cross company code purchase organization
Central purchase organization at company code level.
Reference Purchase organization
Standard purchase organization

One purchasing organization can be assigned to only one company code, but one company code can have
one or more purchase organizations in SAP.Cross company code purchase organization can be assigned at
plant level only.

How to create purchase organization in SAP

In this SAP MM tutorials, you will learn how to define purchase organizations in SAP step by step.

Purch.Organization Description

TKPO TK Software Purchase Organization

You can maintain purchase organization in sap by using one of the following navigation method.

Transaction code: – OX08

Menu Path: – SPRO -> SAP Customizing Implementation Guide –> Enterprise Structure -> Definition –> Materials
Management -> Maintain Purchase Organization.

Step 1) Enter T_code “OX08” in command field and enter.

 Step 2) On change view purchase organizations overview screen, click on new entries button to define new
purchase organization as per company requirements.

Step 3) On new entries purchasing organization screen, update the following details.

1. Purch.Organization: – Enter the key that identifies the purchase organization in SAP.
2. Purch.Org.Descr: – Update the detailed description of purchase organization.

Step 4) After creating the purchase organization as per the company requirement, click on save button.

Now choose the customizing request and click on continue option to save the configured organization data.

Successfully we have created purchase organization in SAP systems.

SAP MM - Home

⊩ SAP MM Tutorial

SAP MM Enterprise Structure

⊩ Define Plant in SAP

⊩ Define Company Code

⊩ Assign Plant to Company Code

⊩ Define Purchasing Organization in SAP

⊩ Define Purchasing Organization in SAP

⊩ Maintain Storage Location in SAP

⊩ Define Purchasing Group in SAP

⊩ Assign Company code to Company

⊩ Assign Purchasing Organization to Company code

⊩ Assing Purchasing Organization to Plant

⊩ Assing Standard Purchasing Organization to Plant

SAP MM - Material Master Data

⊩ What is material master

⊩ Attributes for material type

⊩ Create material types

⊩ Number range interval for material type

⊩ Define material groups

⊩ Company code for material management

⊩ Create material master record

⊩ Purchase Info record

⊩ Maintain Plant parameters

SAP MM - Vendor Material Master Data

⊩ SAP MM - Vendor account groups

⊩ SAP MM - Number ranges for Vendor accounts

⊩ SAP MM - Assign number ranges to vendor accounts

⊩ SAP MM - Sundry Creditors Account

⊩ SAP MM - Vendor master record

SAP MM - Quotation

⊩ SAP MM - Number ranges for RFQ

⊩ SAP MM - Document types for RFQ

⊩ SAP MM - Screen Layout at Document Level

⊩ SAP MM - Maintain Quotation Components

⊩ SAP MM - Text types for RFQ/ Quotations

SAP MM - Purchase Requistion (PR)

⊩ SAP MM - Number ranges for PR

⊩ SAP MM - Document types for PR

⊩ SAP MM - Define Processing time for PR

⊩ SAP MM - Screen Layout at Document Level

⊩ SAP MM - Setup authorization check for G/L account

SAP TCodes

⊩ SAP TCodes

⊩ SAP MM TCodes

SAP MM - Purchase Order (PO)

SAP MM - Contracts

SAP MM - Pricing Procedure

SAP MM - Material Requirement Planning (MRP)

SAP MM - Inventory Management

SAP MM - Invoice Verificationt Process

SAP MM - Invoice Valuation Process

SAP MM - Procurement Process

SAP MM - Reports and Analysis