Your company wants to enable cross-purchasing organization procurement for some products to take advantage of centrally agreed conditions. Which entity do you need for this?

Question

Options

• AA purchasing group
• BA reference purchasing organization
• CA standard purchasing organization
• DA purchasing team

• A
  4% (1)
• B
  74% (17)
• C
  4% (1)
• D
  17% (4)

Explanation

A reference purchasing organization (B) is the SAP entity specifically designed to negotiate centrally agreed conditions (pricing, contracts, info records) that other purchasing organizations can then leverage - this is exactly the mechanism for cross-purchasing organization procurement. A purchasing group (A) is simply a buyer or group of buyers responsible for daily purchasing activities, with no authority to share conditions across organizations. A standard purchasing organization (C) handles procurement for specific plants or company codes but does not inherently enable cross-org condition sharing - it would need to be designated as a reference org to serve that role. A purchasing team (D) is not a standard SAP Purchasing organizational unit at all.

Memory tip: Think of "reference" as in a reference library - one central place others borrow from. The reference purchasing org holds the master conditions; everyone else references it.

No community discussion yet for this question.