Types of Purchasing Group in SAP MM (2025): A Simple Guide for Beginners

In the world of SAP, Materials Management (MM) plays a key role in ensuring smooth purchasing and procurement processes. One of the important elements within SAP MM is the Purchasing Group — a small but powerful concept that helps companies manage who is responsible for buying materials and services.

If you’re learning SAP MM or planning to start a career in SAP procurement, understanding the types of purchasing groups in SAP MM is very important.

In this blog, we’ll explain what a purchasing group is, its purpose, different types, and how to configure it in SAP MM — all in simple words. We’ll also show how GTR Academy, a leading SAP training institute, can help you learn these concepts easily.

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What is a Purchasing Group in SAP MM?

In simple terms, a Purchasing Group in SAP MM represents a person or a group of people responsible for procurement activities in an organization. It defines who carries out the purchase of materials or services from vendors.

Each purchasing group handles specific materials, vendors, or plant locations. It acts as a bridge between the company and its suppliers, ensuring that all purchasing activities are tracked and managed efficiently.

Key Features of a Purchasing Group

• A purchasing group is not tied to any specific purchasing organization or plant.

• It represents the buyer or team responsible for procurement.

• It helps in reporting and tracking who is responsible for each purchase.

• Multiple purchasing groups can exist within the same company for different materials or services.

For example, one group may handle raw materials, another may manage office supplies, and another may handle contracted services.

Types of Purchasing Groups in SAP MM

In SAP MM, there are different types of purchasing groups based on business needs and purchasing responsibilities. These types are not predefined by SAP but are created by the organization to manage various procurement functions.

Let’s look at the common types of purchasing groups used in most companies:

1. Material-Based Purchasing Group

This group focuses on purchasing specific types of materials.

For example, one team might be responsible for buying raw materials for production, while another handles office stationery or IT equipment.

This type helps companies manage procurement efficiently by dividing work according to material categories.

2. Plant-Based Purchasing Group

This type is based on the location or plant where the materials are used or delivered.

For instance, if a company has multiple plants in different cities, each plant can have its own purchasing group to handle its local vendors and requirements.

This ensures quick coordination between the purchasing department and the plant’s operational team.

3. Project-Based Purchasing Group

When a company runs multiple projects at the same time, each project can have its own dedicated purchasing group.

This group focuses on purchasing items and services required specifically for that project. It helps in tracking project-wise expenses and materials efficiently.

4. Service-Based Purchasing Group

This type is responsible for procuring services instead of physical goods.

Examples include facility management, repair and maintenance contracts, or IT support services. A dedicated service purchasing group ensures that service-level agreements and vendor performance are properly monitored.

5. Centralized Purchasing Group

In a centralized structure, one main purchasing group handles all purchasing activities for the organization.

This helps standardize vendor management and ensures cost efficiency. It’s common in large enterprises that want consistent procurement processes across all branches.

6. Decentralized Purchasing Group

In contrast, some companies prefer a decentralized purchasing group structure. Here, each department or branch manages its own purchases.

This allows flexibility and faster decision-making, especially for organizations with different product lines or regional offices.

Difference Between Purchasing Organization and Purchasing Group in SAP

A common confusion among SAP learners is the difference between a Purchasing Organization and a Purchasing Group.

Here’s the simple difference:

• Purchasing Organization is responsible for managing the overall purchasing process and negotiating with vendors. It operates at the company level.

• Purchasing Group represents individual buyers or teams who actually carry out the purchasing tasks, such as raising purchase orders and dealing with day-to-day vendor communication.

In short, the purchasing organization decides what and from whom to buy, while the purchasing group executes those decisions.

Purchasing Group Configuration in SAP MM

To configure a purchasing group in SAP MM, you can follow these basic steps:

1. Go to SAP Easy Access Menu.

2. Use the T-Code: OME4 (or SPRO path: Materials Management → Purchasing → Create Purchasing Group).

3. Enter a three-character key for your purchasing group (e.g., “R01”).

4. Provide a description like “Raw Materials Purchasing Team”.

5. Add contact information such as phone number or email (optional).

6. Save your entries.

Your purchasing group is now created and ready for use in purchase documents like purchase orders and requisitions.

Purchasing Group Tables and Reports in SAP

If you want to view or analyze purchasing group data, you can use certain SAP tables and reports:

• Table for Purchasing Group: T024

• Purchase Order Report T-Code: ME2K, ME2L, or ME2N

• Purchasing Group Report: Generate reports showing which group handled which purchase, how much was spent, and from which vendor.

These reports help management monitor the efficiency of each purchasing team.

Purchasing Group in SAP Example

Let’s look at a simple example:

A manufacturing company called ABC Ltd. has three main divisions — Raw Materials, Machinery, and IT Equipment.

They create three purchasing groups in SAP:

• R01: Raw Materials Purchasing Team

• M01: Machinery and Spare Parts Team

• I01: IT Equipment Purchasing Team

Each group handles its respective suppliers, purchase orders, and budgets. This structure ensures clarity and smooth workflow in the company’s procurement process.

Learn SAP MM and Purchasing Groups with GTR Academy

If you want to master SAP MM concepts like purchasing groups, purchase organizations, and procurement processes, GTR Academy is the best place to start.

GTR Academy offers complete SAP MM training courses online with hands-on practice, live projects, and certification support.

Why Choose GTR Academy?

• Expert Trainers: Learn from professionals with real SAP project experience.

• Practical Training: Work on live SAP systems to understand real-world scenarios.

• Flexible Learning: Attend online classes anytime and anywhere.

• Lifetime Access: Get unlimited access to recorded sessions and updated materials.

• Placement Support: Receive guidance for interviews and job opportunities.

With GTR Academy, you’ll gain not just theoretical knowledge but also the practical skills required to become a successful SAP professional.

Top 10 FAQs About Types of Purchasing Group in SAP MM

1. What is a Purchasing Group in SAP MM?

A Purchasing Group in SAP MM represents a person or team responsible for buying materials and services. It helps track who performed a specific purchase activity within an organization.

2. How many types of Purchasing Groups are there in SAP MM?

There are several types, such as material-based, plant-based, project-based, service-based, centralized, and decentralized purchasing groups.

3. How is a Purchasing Organization different from a Purchasing Group?

A Purchasing Organization manages procurement strategy and vendor negotiations, while a Purchasing Group executes the actual purchase transactions.

4. What is the T-code to create a Purchasing Group in SAP MM?

You can create a purchasing group using T-Code: OME4 in SAP.

5. Can a Purchasing Group be assigned to multiple plants in SAP MM?

Yes, it can work across multiple plants as it’s not restricted to any specific plant or purchasing organization.

6. Where is the Purchasing Group data stored in SAP?

The main SAP table is T024, which stores Purchasing Group information.

7. What is the role of a Purchasing Group in a Purchase Order?

In a Purchase Order, it identifies who created or is responsible for that order.

8. How do you view all Purchase Orders created by a specific Purchasing Group?

Use T-Codes ME2K, ME2L, or ME2N to view all Purchase Orders related to a particular Purchasing Group.

9. Can an organization have both centralized and decentralized Purchasing Groups?

Yes, some companies use a hybrid model for flexibility and efficiency.

10. How can I learn more about Purchasing Groups and SAP MM in detail?

Enroll in SAP MM training at GTR Academy, where expert trainers explain all SAP purchasing concepts through practical, real-time examples.

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Final Thoughts

Understanding the types of purchasing groups in SAP MM is essential for anyone working in procurement, logistics, or supply chain management. It helps organizations streamline their buying processes and assign clear responsibilities to each team or individual.

By learning these concepts through professional training at GTR Academy, you can build a strong foundation in SAP MM and open the door to rewarding career opportunities in SAP and supply chain management.