How to Create the Purchase Organization in the SAP

Purchasing Organization:-

The purchasing organization is an organizational unit which procures articles and negotiates general purchase price conditions with vendors. It is responsible for all purchasing transactions in the company.A purchasing transaction is processed completely by one single purchasing organization.

Path to Create Purchasing Organization:-

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Materials Management ⇒ Maintain Purchasing Organization

TCode: OX08

Step:- 1 select Maintain Purchasing Organization execute icon, by following the above path.

Step:- 2 Click the New Entries icon given below screenshot.

Step:- 3 Fill the name of the purchasing organization along with its description.

Step:- 4 Click the Save icon & a new Purchasing Organization will be created.