Normal Purchase Organization is to procure either for the plant/entire company code/cross company level based upon assignment settings in SPRO.
For Reference Purchase Organization, it will be simply assigned to other normal Purchase organizations only but neither assigned to any plant or company code. This is useful to enjoy the corporate contracts and their price benefits.
Regarding Standard Purchase organization, it is to handle procurement of special stocks
Purchase Organization: for all type of normal procurement we can use this.
Standard Purchase Organization: for procuring special stock like Consignment, Pipeline we can use standard purchase organization.
Reference Purchase Organization: When pur.org enter in to contact and make condition with vendor, for ex: pur org- pr01 enter into contract 4900001 and which is assign to plant-1 and pur org pr002 use this contract which is assign to plant-2 and release the po to plant-2.
Purchasing Organization:
Is the higher level where all decisions related to Purchasing takes place, to explain will give you a simple example.
In a Company, there are multiple decisions for purchasing for example
- IT Purchase
- Raw Product Purchase
- Inventory Purchase
- Business Purchase
Now you need to create four different purchasing org.
Due to this, you can control the activity of all for purchasing org.
Purchasing Group:
Purchase Group is only for Reporting Purpose.
You can create difference Purchase Group to manage the Purchasing Organization and generate a report