The reference purchasing organization
RORG,
which belongs to head office in Atlanta, has negotiated a comprehensive contract for the material
Steel bolt 01
with favorable conditions with vendor
Smith Corp.
The purchasing organization
EORG
, responsible for procurement in the
Houston
and
Austin
plants, wants to issue release orders for the material
Steel bolt 01
against this contract. Purchasing organization
EORG
procures other consumable materials from regional suppliers.
Prerequisites:
Before the purchasing organization
EORG
can issue release orders against the above contract, the following settings and data must have been maintained:
Maintaining Customizing Settings
Both purchasing organizations are maintained in Customizing for the
Enterprise Structure
under
The reference purchasing organization
RORG
can be maintained with or without a company code and plant(s).
The purchasing organization
EORG
is assigned to company code 1000 and the two plants.
Purchasing organization
RORG
is maintained as the reference purchasing organization for the purchasing organization
EORG
in Customizing for the
.
Entering Application and Master Data
The vendor
Smith Corp.
is maintained for both purchasing organizations.
The material
Steel bolt 01
is maintained for the plants
Houston
and
Austin.
A centrally agreed contract has been created without a plant by the reference purchasing organization
RORG
.
The following graphic illustrates which data you have to maintain:
Process Flow
An employee belonging to the purchasing organization
EORG
creates a purchase requisition for the plant in Houston.
The purchasing department processes the requisition and carries out a source determination procedure.
The contract of the reference purchasing organization is determined as a valid source.