Purchase Organization

A Purchase Organization is an organizational unit within logistics in SAP, which subdivides an enterprise to facilitate efficient and effective Purchasing. A Purchasing Organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions.

Each purchasing organization has its own

• Vendor Master Data

• Conditions for Pricing (Price Information)

It has been proposed to have a centralised purchasing organisation would procure do most of the procurement to cater to the needs of various branches.

Purchase Organization

Description

9000

Central Purchase Organization

Purchasing Groups

The purchasing organization is further subdivided into purchasing groups (buyer groups), which are responsible for day-to-day buying activities. A purchasing group is an entity, which communicates with the vendor. Different purchasing groups envisaged for Al-Nukaly are listed below:

ID

NAME

101

Mr.Sikander

102

Mr.Faruq

As a part of Release strategy for purchase orders Mr.MahmudSaed is allowed to release a purchase order up to a limit of SAR.50000 subject to any further changes in the policy of client.