For a Business Partner (BP) to be used as a supplier in procurement processes, its master data must be extended to the relevant organizational levels. The Purchasing Organization is the key organizational unit responsible for all purchasing activities, including negotiating prices and terms with suppliers. Extending the supplier BP to a Purchasing Organization allows for the maintenance of purchasing-specific data, such as order currency, Incoterms, and payment terms for purchasing, which is essential for creating purchase orders and establishing a "source of supply."

B. Company Code: While a supplier must also be extended to a Company Code for financial accounting (e.g., invoicing and payments), the Purchasing Organization is the specific unit for procurement functions.

C. Plant: Supplier master data is not directly extended to the plant level. Plant-specific purchasing data is typically maintained in a separate master data object, the purchasing info record.

D. Purchasing Group: A Purchasing Group represents a buyer or group of buyers; it is not an organizational level to which supplier master data is extended but rather an attribute used in purchasing documents.

1. SAP S/4HANA Help Portal

"Organizational Levels in Supplier Master Data": "Supplier master data is created for specific organizational levels. These are: Client

Company code

Purchasing organization... Purchasing data is maintained for a purchasing organization." This source confirms that the Purchasing Organization is the specific level for purchasing data.

2. SAP S/4HANA Help Portal

"Purchasing Organization": "An organizational unit in Logistics which subdivides the enterprise according to the requirements of Purchasing. It procures materials and services

negotiates conditions of purchase with vendors

and assumes responsibility for these transactions." This defines the role of the Purchasing Organization as central to procurement relationships.

3. SAP Learning (Course TS410)

"Business Process Integration in SAP S/4HANA": The procurement process flow (Procure-to-Pay) chapter explicitly details that supplier master data contains a purchasing segment that is maintained at the Purchasing Organization level. This segment is mandatory for creating purchase orders with the supplier. (Reference to content covered in the TS410 curriculum).