Ways to Organize Purchasing Organizations

[Arthur Wang]

What are the different ways to organize purchasing organizations?

A Purchasing Organization may be responsible for multiple plants and this is referred to as “Distributed Purchasing”. On the other hand, “Centralized Purchasing” features one Purchasing Organization per Plant.

A Purchasing Organization doesn’t necessarily need to be assigned to a Company Code. This would enable procurement for every company code as long as buyers are acting for an individual Plant, and that Plant is assigned to the Purchasing Organization. Hence, a plant may be assigned to more than one Purchasing Organization.

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