internal order

[Former Member]

hi all.

can any one please tell me what are the types of internal orders in CO . what is there function and difference among them. Please explain in detail with examples.

thanku

[Former Member · Accepted solution]

Hi

Internal orders are of two type Real and statistical orders.

Real orders are those where real postings are made and becomes a cost collector.

These can be used for further processing like settling to another cost object or fixed assets etc

Statistical orders are those where the posting are only for statistical purpose that only for reporting. These data cannot be processed further.

Anand

[Former Member]

thanku

[Former Member]

Internal order is a cost object to monitor cost of a time restricted job. Internal

order carries cost when it is created as a Real object. The meaning of Real

object is that it carries cost and has to be settled at the month end to other

receiver objects like cost center.

Internal order can also be statistical. That means it is purely for information. It

does not carry cost and as such no settlement is required at the month end.

Here the real object is the cost center to which the cost is posted and internal

order is additionally used for information purpose.

Internal order is another term for overhead cost orders. It is used to plan,

collect and settle the costs of internal jobs and tasks.

Why do you need an internal order?

In an organization there are various events such as trade fairs, training

seminars which occur. Various Trade fairs are organized by the marketing

cost center. Therefore marketing cost center is responsible for all the trade

fairs costs. All these trade fairs costs are posted to the marketing cost

centers. If the management wants an analysis of the cost incurred for each of

the trade fair organized by the marketing cost center, this information is not

readily available since all the costs are posted to the cost center.

SAP, therefore provides the facility of using internal orders. In the above

scenario the controlling department needs to create an internal order for each

of the trade fair organized. The cost incurred for each of the trade fair will be

posted to the internal orders during the month. At month end, the costs will be

settled from these orders to the marketing cost center. Thus the controlling

person is now in a position to analyze the cost for each of the trade fair

separately.

Thus internal order is used to monitor costs for short term events, activities. It

helps in providing more information than that is provided on the cost centers.

It adds another dimension to the cost center

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