Item Validation Organization Significance

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Item Validation Organization Significance

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Hi

What is the significance of Item Validation Organization Significance in Order management cloud module.    Does this mean every item we are transacting in OM have to be assigned to this validation organziation?   the GOP will handle the warehouse assignment based on sourcing rule and assignment.  In that case, does it matter if an item is assigned to the validation organization or not?  If not, what purpose the validation organization serve in Cloud.

 

Thanks

Chandrajit