SAP Purchasing Organisation-OX08

It is an organizational unit within logistics and it is responsible for procuring materials, negotiating purchase terms with suppliers and hols the legal accountability for all external purchasing activities.

Key Responsibilities:

Negotiation: This means talking to vendors to agree on prices and delivery terms.

Legal Responsibility: This unit is mainly in charge of all buying transactions with outside vendors.

Vendor Management: This involves keeping good relationships with vendors and updating the “Purchasing Info Records.”

Types of Purchasing Organizations

Depending on how your business is set up in SAP, you can organize it in three different ways:

Corporate (Centralized): One Purchasing Organization buys for all Company Codes in the client.

Company-Specific: One Purchasing Organization buys only for one specific Company Code.

Plant-Specific: One Purchasing Organization is linked to a specific Plant.

SAP Assignments

To make everything work in the system, you need to do these assignments in the Enterprise Structure (SPRO):

Assign to Company Code: This connects the purchasing unit to the financial legal entity.

Assign to Plant: This lets the purchasing unit buy materials for that specific factory or location.

Select the maintain purchasing organisation.

Select the new entries.

Give the purchase organisation name and description.

Press enter and then save.

Click the continue button.

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