About sourcing groups and companies relationship with Purchase Order

A sourcing group is an extension of a Purchase Order (PO) procurement group. It expands the processing that can be done for the procurement group to include Strategic Sourcing functionality. The sourcing group in Strategic Sourcing and the procurement group in Purchase Order must have the same group number. For example, if the sourcing group number is GRP123, the associated procurement group number must also be GRP123.

A sourcing company is one level below a sourcing group and is an extension of a Purchase Order company. It expands the processing that can be done for the company to include Strategic Sourcing functionality. The sourcing company in Strategic Sourcing must have the same number as the purchase order company in Purchase Order. There can be one or more sourcing companies in a sourcing group, just as there can be one or more purchase order companies in a procurement group.

Sourcing groups and sourcing companies are used to map data from Strategic Sourcing to data in other applications.

For example, when an event is awarded to a supplier in Strategic Sourcing, a purchase order may need to be created. Event information is then sent from Strategic Sourcing to the Purchase Order application. The relationship includes the data connection between the two applications.

In another example, a vendor agreement may be the result of a sourcing event. The relationship in this scenario is the data connection between Strategic Sourcing and the Purchase Order application.