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what is reference purchasing organization?

Answer Posted / prashant

Reference Purchase Organization is like a Central purchase
Organization whose conditions or contracts, other purchase
organization (linked to it) can use to procure materials &
services.

Reference Purchase Organization gives a better bargaining
power to other Purchase organization (linked to it) as it
is in a better position to negotiate a comprehensive
Contract with favorable conditions.

It also saves time and effort in maintaining master data.
The Vendor master and Purchase Info Record created with
Ref. Purch Org. can be used by other Purchase Org. linked
to it.

A Ref Purch org need not be assigned to any Company Code or
Plant.

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