Sap Essay Example | Topics and Well Written Essays - 750 words

Sap - Essay Example That is what kind of approach to procuring will be suitable for the organization. Approaches that can be used include group related, plant-specific or enterprise related. Group related approach is one where the organization is responsible for all company codes in a client. Enterprise related is responsible for one company code. Plant specific is one where purchasing organization is responsible for one plant. Defining purchasing organizations helps in availing of the conditions and contractual agreements contained in the reference purchasing booklet. This agreements act as a guide on the relationship between the purchasing organization and the company. SAP ERP offers a lot of possibilities in procurement services. It has an increased importance for companies and individual business departments. The first importance is that SAP ERP has enabled the integration of processes that business department have had to bear. Assign purchasing organization to company code: This involves assigning a unique number to the company. You can either use the transaction O*01 or goto IMG and select among the options. The following options may be included: Assign standard purchasing organization to plant: This involves defining one plant where several purchasing organizations procure as standard plant. Reasons being to enable the system to automatically utilize this standard purchasing organizations. Assign purchase organization to reference purchase organization: This step involves making appropriate settings to enable the purchasing staff to incorporate conditions and contract release orders for a cross-purchasing-organization basis. Contracts can be accessed by several purchasing organizations. Other purchasing organizations can use the conditions of reference of other purchasing organizations. â€Å"When configuring the SAP enterprise structure for procurement I would advise companies with more than one legal entity (=