SAP

What is a Purchasing Organisation ? A purchasing organisation in SAP is simply a unit in a company that is responsible for buying goods and services from supplier. Let’s go through a real world example. Imagine Volkswagen Group, they need lot’s of steel for the production of their cars,engines .. etc. There will be a specific team designed for the purpose of buying these raw materials in our case steel. Let’s say we call this team VW purchasing organisation....

What is a plant? How is a plant associated with a storage location? These are the questions we will answer in this post. I will also show you how to create them in the SAP software. Plant So let’s come back to our example from our previous blog about company creation and company code creation. We used the Volkswagen Group as our example. The Volkswagen Group manufactures automobiles, so to manufacture them they need a production plant, right?...

So the first question is: what is the difference between a company and a company code? A company is an organization that can be seen as a legal entity. The most important detail is that a company can have multiple company codes. To understand this better, let’s look at a real-world example. Imagine Volkswagen Group. It is a German company but has operations in several countries. While all of its subsidiaries belong to the same organization, each country must maintain its own accounting records and comply with local legal and tax regulations....