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author's profile photo Former Member
Former Member

Internal orders

Hi,

Any body can explain me what is the use of internal orders in asset accounting

Thanks and regards

Che

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on May 30, 2007 at 03:25 PM

    Hi,

    You can use it as a cost object similar to Cost Center. In such case the depreciation can be booked to Internal Order. Internal Orders can also be used as statistical cost object. This will be helpful in Budgeting for Fixed Assets.

    Thanks

    Murali.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 05, 2007 at 07:45 AM

    Hi,

    In addition to the above I would like to share some points regarding Internal Order with Asset Accounting.

    When ever you purchase the assets and there are some expenses to be incurred towards this assets and you cannot capitalise the asset until those expenses incurred. In this situation you cannot enter the asset values in asset master record so you can create Internal order and post all the values (including asset value) to this internal order. you continue this process till you satisfy that the asset can be used. Once you decided to use the asset then you settle the internal order to the AuC and then transfer from AuC to the main asset for our accounting purpose and to comply with the legal requirements. Hope this explanation clarify your needs.

    Please assign point if you find it is useful.

    Regards,

    Surya

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