assignment of purchasing group to purchasing organization

How to Define Schema Group & Determination in SAP

In this tutorial, we will learn

How to Define Schema Group

How to define schema determination.

We can create schema groups for purchase organization or vendor.

Schema groups are then assigned to purchase organizations in customizing and to vendors in vendor master record. They are used to map the pricing determination process based on the vendor or purchase organization.

• Choose Define Schema Group from SPRO IMG path like in the previous topics.
• From the menu below, choose Schema Groups: Vendor .

Step 2) On the next screen, you can define schema group for use in vendor master & maintain a description of your vendor schema groups.

You define only schema group number and description. There are no settings as this is used to be assigned to the vendor master record .

For example, we might need to create a new group 02 – Schema vendor 02.

Step 3) Next, choose schema groups for purchasing organizations from main schema group menu.

Define your schema groups per your requirement. You define only schema group number and description. No settings either, just an indicator assigned to a purchasing organization.

Step 4) Choose Assignment of Schema Group to Purchasing Organization from schema group menu.

Assign desired schema group to purchasing organization. As you can see on the below screen, the field on the right is left blank, that is because if you leave it blank, it means that the default purchase organization schema should be used .

If you want to use a standard schema for group organization, leave the field in the previous screen blank, and if you want to choose the Schema 0001 enter 0001 in the field marked in the upper screen. Screen with the available schemas for assignment to purchasing organization is available in the previous step (same as on below screen).

Step 5) Assigning a schema group in the vendor master.

Go to the purchasing data view. You will see Schema group, Vendor field. You can choose whichever schema group is suitable for this vendor, default is left blank for standard schema vendor.

You can see that this field is maintained at purchasing organization organizational level (0001), so in combination with schema group for that purchasing organization, if we check tables, the selected calculation schema will be RM0000 – Purchasing Document (Big), as you can see in the next topic.

Determination of calculation schema is a customizing activity.

You have to assign a pricing procedure to a schema group purchasing organization / schema group vendor combination.

Settings are located in Define schema determination option.

Step 1) Choose Determination Calculation schema for Standard Purchase Orders .

• Choose schema group for purchasing organization.
• Choose schema group for vendor.
• Choose calculation schema to be assigned to the purch.org/vendor schema group combination.

Let’s analyze two records on this screen.

• In case 1, we have chosen default schema group for purchasing organization (first field is empty), also, default schema group for vendor (second field is empty), for this combination of both default schema groups, we assigned a RM0000 (Purchasing document – Big) calculation schema.
• In case 2, we have chosen schema group for purchasing organization as 0001, and schema group for vendor as 01, and assigned an RM1000 calculation schema to the combination.

How does it work?

Let’s say that we have a purchase organization 0001 with blank (default) schema group assigned to it, and a purchase organization 0002 with schema group 0001 assigned to it (not default).

We also have a vendor 1 with assigned schema group as blank (default), and vendor 2 with schema group defined as 01 (not default).

• In case we are creating a purchase order through purchasing group 0001 for vendor 1, our calculation schema is going to be determined as RM0000.
• If we are creating a PO for vendor 2 through purchasing organization 0001, calculation schema RM1000 will be determined.
• If we are creating a PO for any of the two vendors in purchasing organization 0002, in both cases there will be determined calculation schema RM1000.

The below table clarifies the calculation schema determination.

You are done. Your pricing procedure is now fully functional.

You can use some advanced features like condition exclusions, copy control, define limits for condition types etc.

• MRBR: Release Blocked Invoices in SAP
• Service Purchase Order in SAP: ME23N
• Release Strategy in SAP MM – Procedure for Purchase Order
• Overview Of Pricing Procedure in SAP MM & SAP SD
• How to Define Access Sequence & Condition Table in SAP V/05, M/03
• How to Define Condition Types in SAP
• How to Define Calculation Schema in SAP
• Reservation of Inventory in SAP MB21, MB1A, MBST, MB22

Purchasing organization in SAP explained: creation, assignment, tables

What is a purchasing organization in sap mm.

A purchasing organization in SAP MM represents a physical entity, a team of persons, that is responsible to purchase some materials and services. Typically, a company has several purchasing organizations, each of them responsible of one or more specific geographical localizations, providers, or types of materials.

For example, in a multinational, one purchasing organisation is responsible of buying all metal from providers for the whole company, while an other purchasing org is responsible for procurement of perishable materials for one country, and another one for the other company locations.

In the SAP system , each purchasing organisation in the company is represented by a unique four characters identifier and a description.

An incorrect assignment of purchasing organization can lead to different SAP system errors, that can all easily be solved with some customization: Purchasing organization not responsible for plant, Vendor has not been created for purchasing organization .

See also how to Assign purchasing organization to company code to complete the list of assignments after purchasing organization creation.

What is Purchasing Organization in SAP There are different types of purchasing organization in SAP MM :

• Plant specific or local purchase organization,
• Cross plant purchase organization,
• Cross company code purchase organization,
• Central purchase organization at company code level,
• Reference Purchase organization,
• Standard purchase organization.

SAP MM- How to Define Purchase Organization in SAP

How to create a purchasing organization in SAP?

To create purchasing organization in SAP, start by going to the customization transaction SPRO.

There, navigate to the enterprise structure management, to definition of basic entities, and then to materials management, where the maintain purchasing organization will be accessible.

Then, the list of available purchasing organization will be displayed. The description can be updated, but not the purchasing organizations identifier.

Click on the new entries button to create a new one.

In the new entries screen, enter as many four characters identifiers and descriptions as necessary, for each SAP purchasing organization to create.

After that, a customization request will be necessary to save the customization changes.

The purchasing organization should now have been created, and must be available for use in the SAP system .

Assign purchasing organization to company code

One of the first assignments to perform is to Assign purchasing organization to company code after the creation of a new purchasing organization.

This very important step will then allow to extend vendor to purchasing org.

The company code and purchase org assignment table in SAP is table

SAP Tables for Logistics execution.

Have you read?

• Purchase Info Record in SAP MM S4HANA
• What is procurement lifecycle management for operational purchasing?
• How to create business partner in SAP S/4HANA

How to extend vendor to purchasing org in SAP?

To extend a vendor to purchase organization in SAP HANA , open the new business partner transaction BP.

From there, assign vendor to purchasing organization by opening the business partner in role FLVN01 supplier. After, to find how to add purchasing organization to vendor in SAP, start by opening the purchasing view available under the more menu in the top right corner.

From there, extend vendor to purchasing organization in SAP by opening the right purchasing organization.

You have to extend vendor to purchase org in SAP to solve following error: vendor has not been created for purch. organization, or Vendor has not been created for purchasing organization .

SAP Vendor Master Purchasing Organization Tables

The vendor master purchasing organization data table in SAP is the table LFM1 – vendor master record purchasing organization data. You can extract data from SAP to Excel from table LFM1 using the table viewer transaction SAP SE16 export to Excel function.

How to assign purchasing organization to plant?

In order to assign a purchasing organization to a plant in SAP, go to the customization transaction SPRO, and find the view “assign purchasing organization to plant”, in which you can create an entry linking purchasing organizations to plants.

After that, the purchasing organization will be available for given plant, thus solving the issue “purchasing organization not responsible for plant”.

Assign Purchase Organisation to Plant in SAP – SAP Training Tutorials

The plant and purchase org table in SAP are stored in table T024W – Valid Purchasing Organizations for Plant. You can extract data from SAP to Excel from table T024W using the table viewer transaction SAP SE16 export to Excel function.

Assign purchasing group to purchasing organization

There is no way to Assign purchasing group to purchasing organization as they are different entities.

There is also no common purchasing group and purchasing organization SAP table, they are totally separate: purchasing group SAP table is T024, and purchasing organization SAP table is T024E.

SAP purchase organization table

Several purchase organization table in SAP are used to store the different types of purchasing org in SAP and their corresponding assignments.

The most important purchase org table in SAP are:

• LFM1 Vendor master record purchasing organization data,
• T024E Purchasing Organizations,
• EINE Purchasing Info Record: purchasing organization Data,
• T024W Valid purchasing organizations for Plant.

SAP Purchasing Organization Tables

• How to perform quotation price comparison in SAP?
• Create a plant location in SAP Logistics

SAP Purchasing Group Tables: T024,T061,S011

by Haq Nawaz | Oct 1, 2023 | SAP Tables

SAP Purchasing Group Tables play very elementary role in the system to enhance the efficiency of the ERP system. The function of the tables is to streamline the purchasing activities within the organization. They reside the information concerning to the purchasing logically. Below in tabular form, details of purchasing tables are given:

T024 Tables

Description: These tables hold data about purchasing groups comprising of assigned codes, description and related data. The prominent fields of the tables are EBGRP (Purchasing Group),EKGRP (Purchasing Group Descriptions) and more

T024E Table

Description: The SAP Purchasing Group Table is part of database for assignment of purchasing organizations. Tables hold information about assignment of purchasing groups to purchasing organizations having fields EKORG (Purchasing Organization), EKGRP (Purchasing Group) and more

T024W Table

Description: This table holds information about the purchasing organizations valid for related purchasing groups. The fields of the table are EBGRP (Purchasing Organization), EBGRP (Purchasing Group) and more

T061 Tables

Description: It is table in SD application with the transaction code SE16 and SE11 TCode. Its fields are MANDT,KAPPL , KSCHL , EKGRP and more

T16FB Table

Description: It is part of SAP ERP System with the function to select the field selection for purchasing groups in the vender master record.  

In Short SAP Purchasing Group Tables are mandatory part of SAP Material Management Module (MM). Moreover, this set of tables deliver an organized and structured framework for organization of purchasing groups , their assignments and concerning procurement processes. The function of these tables is to facilitate effective procurement operations, compliance and control within the organizations, ultimately being a part of effective supply chain management.

• TutorialKart
• SAP Tutorials
• Salesforce Admin
• Salesforce Developer
• Visualforce
• Informatica
• Kafka Tutorial
• Spark Tutorial
• Tomcat Tutorial
• Python Tkinter

Programming

• Bash Script
• Julia Tutorial
• CouchDB Tutorial
• MongoDB Tutorial
• PostgreSQL Tutorial
• Android Compose
• Flutter Tutorial
• Kotlin Android

Web & Server

• Selenium Java
• SAP MM - Home
• SAP MM Tutorial
• SAP MM Enterprise Structure
• Define Plant in SAP
• Define Company Code
• Assign Plant to Company Code
• Define Purchasing Organization in SAP
• Maintain Storage Location in SAP
• Define Purchasing Group in SAP
• Assign Company code to Company
• Assign Purchasing Organization to Company code
• Assing Purchasing Organization to Plant
• Assing Standard Purchasing Organization to Plant
• SAP MM - Material Master Data
• What is material master
• Attributes for material type
• ADVERTISEMENT
• Create material types
• Number range interval for material type
• Define material groups
• Company code for material management
• Create material master record
• Purchase Info record
• Maintain Plant parameters
• SAP MM - Vendor Material Master Data
• SAP MM - Vendor account groups
• SAP MM - Number ranges for Vendor accounts
• SAP MM - Assign number ranges to vendor accounts
• SAP MM - Sundry Creditors Account
• SAP MM - Vendor master record
• SAP MM - Quotation
• SAP MM - Number ranges for RFQ
• SAP MM - Document types for RFQ
• SAP MM - Screen Layout at Document Level
• SAP MM - Maintain Quotation Components
• SAP MM - Text types for RFQ/ Quotations
• SAP MM - Purchase Requistion (PR)
• SAP MM - Number ranges for PR
• SAP MM - Document types for PR
• SAP MM - Define Processing time for PR
• SAP MM - Setup authorization check for G/L account
• SAP MM TCodes
• ❯ SAP MM Tutorial
• ❯ Assing Purchasing Organization to Plant

SAP MM – Assign Purchasing Organization to Plant

How to assign purchasing organization to plant in sap.

In this SAP MM Tutorial, you will learn how to assign purchasing organization to plant in SAP step by step using transaction code OX17. The link between purchasing organization and plant is established through the assignment of plant to purchasing organization in SAP.

Refer below step by step configuration steps of assignment of purchase organization to plant.

Configuration values

Step 1 : – Execute t-code “OX17” in command field from SAP easy access screen.

Step 2 : – On change view “Assign purchase organization to plant” overview screen, choose new entries button for assignment configuration screen.

Step 3 : – On new entries assignment screen, update the following details.

• POrg : – Enter the purchase organization key in the field POrg for assigning to plant.
• Plnt : – Update the required plant key in the field Plnt.

After assigning the required details, press enter to continue and choose save icon and save the configured details.

Successfully we have assigned purchasing organization to plant in SAP MM.

Popular Courses by TutorialKart

App developement, web development, online tools.

SAP Assignment of purchasing organization to company code and plant

Assign purchasing organization to plant

Assign purchase organization to company code, purchase organization in sap, what is standard purchase organization in sap mm, frequently asked questions.

• Intro to SAP HANA for Non-Techies in video - video

After having created a new purchasing organization in SAP, the next step is to assign it to both a company code in SAP MM, and a plant, in order to be able to use it within the  SAP MM   module. Otherwise, some issues may be faced while creating a  SAP purchase order   for example.

First of all, go to the customizing SAP transaction SPRO, and navigate to Enterprise Structure > Assignment > Materials Management > Assign Purchasing Organization to Company Code.

In the SAP change view, find the Purchasing organization to which a company code should be assigned, enter it, and save.

A  SAP MM   customizing request will be necessary and a SAP prompt with ask for it.

Then, back in SPRO SAP transaction, navigate to Enterprise Structure > Assignment > Material Management > Assign standard purchasing organization to plant.

Find the plant to which the purchasing organization should be assigned :

Enter the  SAP purchasing organization   structure to assign to the plant, and save :

Again, a SAP prompt will request a customizing request :

A purchasing organization structure has to be defined in SAP, in order to allow a purchasing group in SAP to perform purchases for the corresponding SAP purchasing group assignment, once the assignment of purchasing group to purchasing organization and subsequent assignments to company code and plant has been done.

Intro to SAP HANA for Non-Techies in video

Comments (0)

Leave a comment.

How to Define Schema Group

We can create schema groups for purchase organization or vendor.

Schema groups are then assigned to purchase organizations in customizing and to vendors in vendor master record. They are used to map the pricing determination process based on the vendor or purchase organization.

• Choose Define Schema Group from SPRO IMG path like in the previous topics.
• From the menu below, choose Schema Groups: Vendor.

Step 2)  On the next screen, you can define schema group for use in vendor master & maintain a description of your vendor schema groups.

You define only schema group number and description. There are no settings as this is used to be assigned to the vendor master record.

For example, we might need to create a new group 02 – Schema vendor 02.

Step 3)  Next, choose schema groups for purchasing organizations from main schema group menu.

Define your schema groups per your requirement. You define only schema group number and description. No settings either, just an indicator assigned to a purchasing organization.

Step 4)  Choose Assignment of Schema Group to Purchasing Organization from schema group menu.

Assign desired schema group to purchasing organization. As you can see on the below screen, the field on the right is left blank, that is because if you leave it blank, it means that the default purchase organization schema should be used.

If you want to use a standard schema for group organization, leave the field in the previous screen blank, and if you want to choose the Schema 0001 enter 0001 in the field marked in the upper screen. Screen with the available schemas for assignment to purchasing organization is available in the previous step (same as on below screen).

Step 5)  Assigning a schema group in the vendor master.

Go to the purchasing data view. You will see Schema group, Vendor field. You can choose whichever schema group is suitable for this vendor, default is left blank for standard schema vendor.

You can see that this field is maintained at purchasing organization organizational level (0001), so in combination with schema group for that purchasing organization, if we check tables, the selected calculation schema will be RM0000 – Purchasing Document (Big), as you can see in the next topic.

Assign Purchasing Organization to Plant in SAP S/4Hana

The assignment of purchasing organization to plant in SAP S/4Hana is an important configuration part, by assigning purchasing organization to plant enables the creation of procurement elements such as purchase requisition, purchase orders for a plant.

How to Assign Purchasing Organization to Plant in SAP S/4Hana

You can assign purchasing organization to plant in SAP S/4Hana system by using the following configuration steps

• IMG Menu Path : SPRO > IMG > Enterprise Structure > Assignments > Materials Management > Assign Purchasing organization to plant.
• Transaction code: OX17

Step 1: Execute transaction “ OX17″ in the SAP command field.

Step 2 : On the change view “ Assign purchasing organization to Plant ” Overview screen, click on the “ New entries ” button to assign purchasing organization to plant in SAP S4 Hana.

Step 3: On new entries assignment of purchasing organization to plant screen, enter the following required details.

• POrg : Enter the purchasing organization key: Ad10
• Plnt : Enter the plant key: AP01

After the assignment of purchasing organization to plant, click on the save option and save the assignment configuration details in SAP S/4Hana system.

• eProcurement
• Materials Management
• AP Automation
• Markets We Serve
• Case Studies

Group Purchasing Organization (GPO): What You Should Know

What is a gpo.

A GPO or Group Purchasing Organization, also called a co-op, purchasing group, consortium, collective, coalition, or leveraged procurement group, exist to leverage their members’ combined purchasing power to obtain maximum discounts from suppliers for all its members. The group’s collective buying power far exceeds what any one company can generate on its own and hence they can save by being part of the GPO.

Why is a GPO essential?  

A GPO helps a company focus on its core business and portfolio rather than the indirect products and services required to keep the company running smoothly.

A GPO combines its members’ purchasing power for assorted products and services and negotiates agreements with suppliers and manufacturers so that members can purchase at group prices and conditions if they so choose. With GPOs, savings can be delivered in two different ways. First, discounts and rebates are pre-negotiated instant savings. Second, producers are given the option of privately negotiating better prices with a pre-approved list of suppliers. 

Here are some quick facts about GPOs:

• GPOs aren’t just for healthcare organizations . During the 1980s and 1990s, the federal government and healthcare organizations formed GPOs to lower the costs and generate efficiencies in their purchasing systems. Hospitals and independent nursing homes could consolidate their purchasing power with other facilities to create contracts with medical and other suppliers. Those same practices have scattered into other organizations. Today, many other industries are planning to develop GPOs that bring in these valuable benefits.
• Save money and time On average, GPOs save businesses between 10-25 percent. This savings happens not just through reduced prices negotiated into the purchasing contracts, but also by regulating the purchasing process. Rather than proceeding through a complex negotiation process with multiple suppliers and hiring employees to monitor those contracts, a GPO handles this process for you. The suppliers are generally paid administrative fees and are built into the discounted price, so it’s an even sweeter deal than your Costco membership.
• Know upfront what your savings are If you remember what you purchased in the past year, the GPO can let you know your potential cost savings. The GPO will take your purchasing report and provide you a breakdown of the discounted price and your assumed cost savings. You can then take that analysis and decide to join.
• Control your purchasing GPOs do not purchase products or make purchasing decisions for you. You’ll have complete control over what you are buying and when. You will just have the purchasing power of a Group Purchasing Organization behind you. Then, you can dedicate your time to the more profit-friendly aspects of your business and forget about constantly looking for the best deal on your supplies.
• Get the attention of big-name suppliers Small and mid-sized companies don’t have the clout needed to get aggressive pricing from well-known suppliers. With a GPO, small companies purchase as a group to get the same competitive prices of a larger company. As you join up with other companies, your combined purchasing power will attract those coveted suppliers.

Types of GPOs  

Generally, there are three main types of GPOs: 

• Vertical – Market GPO  
• Horizontal – Market GPO  
• Master Buyer  

1. Vertical – Market GPO   

A vertical GPO helps businesses and organizations in a certain sector or market segment. 

There are 6 different kinds of vertical market GPOs, discussed below. 

• Healthcare GPO   A healthcare GPO helps promote high-quality healthcare and the efficient management of costs for a range of providers. GPOs usually subsidize health equipment, nutrition, pharmacy, and testing facilities. Few major GPOs have broadened their contract portfolios to include discounts on office equipment and other non-medical facilities.  An “administrative” fee is how a GPO earns a profit. When supplying goods to their member hospitals, GPOs will charge an “administrative” fee of up to 3.0% of all sales volume to the suppliers for whom they have negotiated a deal. These fees do not influence the final price. They’re used to pay for the GPO’s daily operations. If there is a surplus, it is returned to the GPO owners; thus, GPO owners save money on the products they purchase by community contracts while still earning distributions from the GPO. General GPO members can also obtain some fee sharing as part of their member arrangement, but this procedure is no longer the norm; thus, the primary benefit to a GPO member is accessibility to steep discount pricing.  GPOs say that their services help healthcare providers raise their profit margins. Their participants benefit from value-added services such as clinical support, benchmarking results, supply chain support, and extensive portfolios of products and services to satisfy specific needs.  GPOs have various strategies for securing vendors’ discounts, ranging from demanding exclusivity to requiring enforcement and granting sole-source contracts. Pricing is one-way GPOs can attract new members or persuade other GPO members to move when the healthcare market gets crowded with them. 
• Food Service or Grocery GPO   Food service or grocery GPO primarily focuses on the $600 billion foodservice industry, covering multi-unit foodservice operators’ food and food-related sourcing, contract negotiation, and supply chain services. Supplier/manufacturing arrangements and purchasing plans are used to conduct these deals. Fresh vegetables, frozen food products, chilled and processed meats, sweets and snacks, cheese and bakery, dry goods, disposables, and drinks are all things that can be bought at a grocery store.
• Hospitality GPO   A Hospitality GPO aims at addressing manufacturing and sourcing conflicts for hotels and holiday rentals by combining demand for products and services used to furnish and store guest units and manage hospitality companies, resulting in substantial cost savings for its participants on furniture, equipment, electronics, applications, home goods, kitchen, and bed and bath products. 
• Industrial Manufacturing GPO   Through aggregating demand for goods and services used in the manufacturing and distribution chain and providing deep savings on raw materials, services, and parts to its participants by rebates, concessions, and preferred pricing, a manufacturer’s GPO succeeds in resolving procurement and sourcing issues. The combined purchasing force allows producers to save money on sales and compete more efficiently among the world’s biggest manufacturers.
• Legal GPO   A law firm purchasing alliance is committed to lowering legal costs by bringing together a group of best-in-class suppliers to meet all law firms’ primary sourcing needs of all sizes. Members save money automatically thanks to pre-negotiated deals and rebates. And law firms are given the option of privately discussing competitive prices with a pre-approved list of suppliers. 
• Non-Profit GPO   Non- profit GPOs are similar to traditional GPOs, but they comprise a board of nonprofit, community-based organizations that collaborate to reduce costs.  Many major healthcare GPOs are moving into the nonprofit market by establishing divisions to support, for example, nonprofits in the human services industry, often in partnership with nonprofit hospitals. 

2. Horizontal-Market GPO  

A horizontal GPO helps organizations across a wide range of sectors. In contrast, a vertical GPO helps organizations in particular industries, such as health care, food service, legal, dairy, and industrial production. Members of the horizontal market GPO come from several sectors, but they buy a lot of the same goods and services to develop their products and operate their businesses. OMNIA Partners is an example of a horizontal-market GPO.  

Each Member Client makes direct savings from a horizontal GPO on sales to the GPO contract provider because of high-class contracts in which all members get the same price and service.

3. Master Buyer  

When one chief buying organization has considerable contracts in place with vendors and allows additional companies to buy those contracts, the organization is said to be a Master Buyer. The automobile industry is a classic real-world example of the Master Buyer model because Tier 1 and Tier 2 suppliers can access the pricing contracts of large automotive manufacturers who have negotiated with vendors.

Related Posts

" * " indicates required fields

How to Assign Purchasing Organization to Plant in SAP

After configuration of Purchasing organization and plant in SAP, the next configuration step is assign purchasing organization to plant in SAP. The link between the organizational units purchasing organization and plant is established through this assignment process.

How to assign purchasing organization to plant in SAP

To assign purchasing organization to plant in SAP, use the transaction code “OX17 or navigation path Enterprise Structure => Assignment => Materials Management => Assign Purchasing organization to Plant.

Configuration values for assigning purchase organization to plant key

Step 1: Execute the transaction code “SPRO” from SAP Easy Access screen.

• POrg: Update the purchasing organization key in the given field POrg.
• Plant: Update the plant organization unit key for assign to Purchasing organization.