What is the standard purchase organization

Question

Accepted Answer

The standard purchase organization is a purchasing entity within SAP MM that represents a legal entity or a group of plants.

It is used to define purchasing parameters and strategies for a specific group of plants or company codes.
It helps in streamlining procurement processes and ensuring compliance with purchasing policies.
It can be assigned to multiple plants or company codes.
It allows for centralized purchasing and negotiation of contracts with vendors.
Example: A company may have multiple plants across different locations, and each plant may have its own purchasing requirements. The standard purchase organization helps in managing and coordinating these purchasing activities.

Accepted Answer

WHICH IS RESPONSIBLE FOR PROCUREMENT ACTIVITIES & THEY DO NEGOTIATE WITH THE VENDORS

SPRO>IMG>ENTERPRISE STRUCTURE>ASSIGNMENT>MATERIALS MANAGEMENT>ASSIGN STANDARD PURCHAE ORGANAIZATION TO PLANT

Accepted Answer

Standard purchasing organization is mainly used for special procurement process.

Configuration steps to assign standard purchasing organization to plant in SAP is

SPRO>IMG>Enterprise Structure>Assignment>Materials Management>Assign

Standard Purchasing Organization to Plant.

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