In SAP's procurement activities, procurement organizations and procurement group; we will understand that purchasing group purchasing organization and a difference of only one word should be a superior-subordinate relationship, or there is a great correlation between the two, but in fact between the two is little to do, here is a SAP official to explain these two terms:
Purchasing organizations purchase materials or services, negotiate with suppliers purchasing terms and conditions and bear the responsibility of the transaction. By purchasing organization assigned to the company code and plant, can be integrated into the company's procurement structure. Therefore, you may consider using a centralized procurement in the company or decentralized procurement; or you can use the combination of these two forms of organization. You can assign multiple procurement organization to a company code. However, a specific purchasing organization can only belong to one company code. You may decide not to assign purchasing organizations to company codes (cross-company code purchase). Many relationship exists between procurement organizations and factories; a purchasing organization can be assigned to multiple plants, and vice versa .
Purchasing group is an important organizational units responsible for procurement activities specific buyer or buyer group. Purchasing group responsible for internal procurement of materials or material type. Purchasing Group to provide external contacts suppliers. Purchasing group do not have the organizational structure of the company and other associated structures. Purchasing organization is an organizational unit in logistics, procurement needs in accordance with the enterprise segment.
From the official explanation given, we can see that the procurement organization is to be assigned to a company or factory, while the group does not have to purchase the company structure associated with other organizational structure; and the configuration path between the two is also very different:
Purchasing organization is defined in a custom business structure, path: Enterprise structure → defined → Materials Management → Purchasing maintenance organization under the definition.
The purchasing group is not customized corporate structure defined, but is defined under Purchasing → Create group Materials Management → Purchasing.