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purchasing organization

Purchasing (MM-PUR)

Organizational unit within Logistics, subdividing an enterprise according to the requirements of Purchasing. A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions.

The form of procurement is specified through the assignment of purchasing organizations to company codes and plants.

Possible forms are as follows:

  • Enterprise-wide: One purchasing organization procures for all the company codes of a certain client (that is, for all the individual companies of a certain corporate group)

  • Company-specific: One purchasing organization procures for just one company code

  • Plant-specific: One purchasing organization procures for one plant

Mixed forms are possible, which are replicated in the system with the aid of reference purchasing organizations.

A purchasing organization may access and use the more favorable conditions and centrally agreed contracts of the reference purchasing organization assigned to it.