IS IT MANDATORY TO ASSIGN PURCHASE ORGANIZATION TO A

COMPANY CODE?
Contributed By
SUHAS BAVIMANE G B
Under the Guidance of Mr. PRASHUN SHETTY

Every organization has a framework or a structure according to which the

whole business runs. This structure is mapped in SAP ERP to run the business
efficiently.
It is understood in the market that a success of an organization is strongly
dependent on the good organization structure. So, keeping it in mind let’s see a
scenario where a purchase organization is not assigned to a company code

Pre-requisites for this scenario are,

1. Definition of company code and company.
2. Assignment of company code to company.
3. Definition of plant.
4. Assignment of plant to company code.
5. Maintaining storage location for plant.
Scenario,
1. Maintaining Purchase Organization

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For Simplicity we have considered 1000 as company code, company and 2410 – RE
Plant 1 as plant.

Click on SAP Reference IMG

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Execute Maintain purchase organization

Click on New Entries

For simplicity we have taken 2410 as purchasing organization as well, Save it after entering

Let’s not assign this purchase organization to the company code. So, that we can run
this Scenario
 By maintaining minimum views i.e. Basic data, Purchasing and Accounting a
material SB-001 (RM - Handle) is created using MM01.
 A vendor i.e. SK Metals is created using XK01.

Now,
Let’s try to procure the material SB-001 from SK Metals. To procure first we have
to create a Purchase order using ME21N

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ERROR!

Now let’s assign the purchasing organization 2410 to company code 1000 and
see if the error is rectified.
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Create a purchase order with different quantity of your choice,

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ERROR!

Now let’s assign the purchasing organization 2410 to plant 2410 and see if the
error is rectified.

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After assigning save the assignment,

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Now, create a purchase order to see if the error is rectified
2

1- Check for errors (No messages issued during check)

2- Save the document.

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CONCLUSION:
It is mandatory to assign a purchase organization to a plant but optional for
company code.
It is evident in the picture that there is no assignment of purchase organization to
company code.

And we can link only one purchase organization to a company code.

Whereas for assignment of purchase organization to a plant, multiple purchase

organizations can be assigned to a plant.

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The copyright in this work is vested in SAP GURU INDIA. Please note
and abide by copyright laws. This presentation is for educational
purposes only. All logos, photos and information etc., used in this
presentation are the property of SAP GURU INDIA.

logos, photos and information etc., used in this presentation are the
property of SAP GURU INDIA.

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