This refers to
the organizational structure in SAP that is responsible for procurement of
materials. The Purchasing Organization is the top-most organizational element
in MM, and this can take any one of three forms such as
(1) Cross-plant
purchasing organizations (catering to more than one plant but within the same
Company Code),
(2)
Plant-specific purchasing organizations (with a 1:1 relationship with the
plant), and (3) Cross-company code purchasing organizations (catering to more
than one Company Code). Entrusted with the activity of negotiating the price,
delivery conditions, etc., of materials from vendors, the Purchasing Organization
can further be subdivided into purchasing groups.
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