What is reference purchasing organization in SAP MM-PUR - Purchasing?

SAP Term: reference purchasing organization

• Component: MM-PUR

• Component Name: Purchasing

• Description: A purchasing organization whose conditions or contracts other purchasing organizations linked to it may access and use. A reference purchasing organization can make especially favorable conditions or contracts available to other purchasing organizations.

Smart SAP Assistant

• Key Concepts: 
  Reference purchasing organization is a feature in SAP MM-PUR Purchasing that allows you to assign a purchasing organization to a company code. This purchasing organization will be used as the default for all purchasing activities within the company code. 
  
  How to use it: 
  To assign a reference purchasing organization to a company code, go to the IMG (Implementation Guide) and navigate to the “Define Reference Purchasing Organization” activity. Select the company code and enter the purchasing organization you want to assign as the reference. 
  
  Tips & Tricks: 
  When assigning a reference purchasing organization, make sure that it is valid for all of the materials and services that will be purchased by the company code. This will ensure that all of the necessary information is available when creating purchase orders. 
  
  Related Information: 
  For more information on reference purchasing organizations, refer to SAP Help documentation or contact your local SAP support team.