MM Configuration: Assign Purchasing Organization to Company Code and Plants




Step by step SAP Material Management (MM) Configuration: Assign Purchasing Organization to Company Code and Plant

Purchasing Organization is an organization unit that has responsibility to company’s purchasing requirements. It negotiates purchasing conditions (price, discount, and other things) with vendors.

We can assign Purchasing Organization to a company code if we want a Company-specific purchasing. The purchasing organization may procure only for this company code. Then, we assign only plants of the company code concerned to the purchasing organization.

You can read our previous post to understand more about Purchasing Organization in SAP Enterprise Structure.

In this example we will assign “GC00” Purchasing Organization to “GC00” company code and to “GC01” plant. We can do this in a SAP R/3 client with T-code: SPRO. SAP step-by-step Screen shots of How to assign a Purchasing Organization to company code and plants are:

  • To assign purchasing organization to company code, go to the menu: IMG – Enterprise Structure – Assignment – Material Managements – Assign Purchasing Organization to Company Code:

The above image is © SAP AG 2010. All rights reserved

  • Click Execute button, the next screen is:

The above image is © SAP AG 2010. All rights reserved

  • Fill the company code which we want to assign the purchasing organization to. Then Click Save button. The “GC00” Purchasing Organization has been assigned to “GC00” company code only.
  • To assign purchasing organization to plants, go to the menu: IMG – Enterprise Structure – Assignment – Material Managements – Assign Purchasing Organization to Plant:

The above image is © SAP AG 2010. All rights reserved

  • Click Execute button, the next screen is:

The above image is © SAP AG 2010. All rights reserved

  • Click New Entries button, the next screen is:

The above image is © SAP AG 2010. All rights reserved

  • Fill the Purchasing Organization and Plant fields which we want to assign. Then Click Save button. The “GC00” Purchasing Organization has been assigned to “GC01” plant. We can also assign this purchasing organization to other plants in “GC00” company codes if any.

SAP Study Materials Series e-Book
To get more details on SAP Enterprise Structure, you can buy my e-book (50 pages .pdf file) at SAP Study Materials Store.

The e-book explains in details about the SAP Enterprise Structure (MM and related modules such as FI, Logistics, and SD) Concept and Configuration Guide. Just like other articles on my SAP Study Materials blog, I wrote the e-book in a simple-to-understand way, so you can learn it easily. You don’t need to have extensive SAP knowledge and experience to be able to configure the SAP Enterprise Structure, as the e-book start explaining each step with the basic concept behind it. After understanding the concept, the e-book will show the step-by-step configuration with the screen shots.


2 thoughts on “MM Configuration: Assign Purchasing Organization to Company Code and Plants

Leave a Reply to Sajid Cancel reply

Your email address will not be published. Required fields are marked *