In your organizational structure, a single purchasing organization will operate across company codes. How must you assign the purchasing organization?

Question

Options

• ATo the plants for which it is responsible
• BTo a standard purchasing organization
• CTo the company codes for which it is responsible
• DTo a reference purchasing organization

• A
  11% (4)
• B
  3% (1)
• C
  81% (29)
• D
  6% (2)

Explanation

When a single purchasing organization operates across multiple company codes, it must be assigned directly to each company code for which it is responsible - this cross-company-code assignment is what enables the purchasing org to procure on behalf of those entities within SAP MM.

Why the distractors are wrong:

• A is incorrect because plants are assigned to purchasing organizations (not the other way around for this setup); plant assignment is a separate, downstream step.
• B is a distractor using SAP terminology - a "standard purchasing organization" refers to a plant-level default, not a structural assignment mechanism for cross-company scenarios.
• D is incorrect because a reference purchasing organization is used to share conditions/contracts, not to define which company codes a purchasing org serves.

Memory tip: Think of it as jurisdiction - a purchasing org must be "authorized" by each company code it serves, so the assignment flows to the company codes. The phrase "operates across company codes" is your trigger that option C is always the answer.

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