Purchasing

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    David Cesteros
    For Purchasing, is enough to define a Master Organization or...
    Topic posted May 23, 2017 by David CesterosRed Ribbon: 250+ Points, tagged Setup 
    92 Views, 6 Comments
    Title:
    For Purchasing, is enough to define a Master Organization or also we must defined a child organization?
    Summary:
    For Purchasing, is enough to define a Master Organization or also we must defined a child organization?
    Content:

    We don´t use inventory when we do a purchase order/receipt. We will use only categories, no items

    is it enough to define a Master Organization or also we must defined a child organization?

     

    Any one knows the implications

     

    Thanks in advance

     

    Comment

     

    • Suman Guha

      David,

      You must define inventory orgs even if you do not intend to manage/maintain inventory. It is not enough to just create an org for item management.

      This is because purchase requisitions and purchase orders require you to designate deliver-to/ship-to organizations. All receiving and receipt accounting activities take place in the context of these orgs.

      Regards,

      Suman.

      • David Cesteros

        Thanks Suman for your information. Just clarify that I aware I must define a inventory organization. My doubt was if is  mandatory define a master and child inventory organization or if we define only a  master organization the system will work fine.

        The other doubt is which are the implication if we defined only  master or a master and childs.

         

        Thanks in advance

    • Suman Guha

      Hi David, Every inventory org must identify a master org and yes it can be its own master. If you have more than one org being set up and if you will be buying for all from a single procurement BU, you would want to set one of them up as a master or a separate master org altogether. This master org typically is identified as the Inventory Org in Configure Procurement business function of the BU. When the BU hosts agreements, the items on the agreement lines come from this org. When the BU processes orders, the items on the order lines are items from this org. The child orgs on the other hand contain only a subset of these items based on where the items get enabled from the master. Whether the item has been enabled in the child org or not depends on whether you can request or order this item for delivery to this org.

      Hope that clarifies.

      Regards,

      Suman.

      • David Cesteros

        Thanks Suman for your explanation

        And if you only use categories and NEVER use ítems for creating purchase orders, is the same behaviour?

        I understand we can use master inventory organizations or the child inventory organization, right?

        Just for your information, currently we have only a procurement BU, but maybe we can have more in the future

        Thanks again for your help

        David

         

    • Suman Guha

      If you don't use items at all, then the requirement of a master org comes from the fact that you need an inventory org to function as the deliver-to/ship-to org on your purchase orders and requisitions and inventory orgs need to identify a master org even if you don't plan to define any items in your master org as yet.