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internal order

Former Member
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hi,

1) what actually is internal order

2) which transaction create this order?

3) what is the role of internal order in account assignment.

thanks

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi

Internal orders in the R/3 System describe individual jobs within a controlling area. Orders support action-oriented planning, monitoring, and allocation of costs.

You can use internal orders to:

Monitor internal jobs settled to cost centers (overhead orders)

Monitor internal jobs settled to fixed assets (investment orders)

Offsetting postings of accrued costs calculated in CO (accrual orders)

Display the cost controlling parts of Sales and Distribution customer orders and revenues that do not affect the core business of the company (orders with revenues)

The management of internal orders represents the most detailed operational level of cost and activity accounting and can be used for the following:

You can analyze costs differently than in Cost Center Accounting for cost management.

You can compare in-house production and external procurement costs for decision-making.

Go through the below link for more details

http://help.sap.com/saphelp_erp2005vp/helpdata/en/a9/ab7f68414111d182b10000e829fbfe/frameset.htm

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Answers (3)

Answers (3)

Former Member
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Hi Eliana,

it is a controlling object using for monitor the costs

u can take tele phone bill as an example- your company given 10 mobile numbers but company wanted to enter one figure combined -

so like this situations we can use internal orders

it's like a job costing

regards

Former Member
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Hi

Internal Order especially useful to track particular expenditure and by using internal order (real) we can capitalize any asset, which is in construction. At the time of construction, buying all materials we will book under internal order (real) and finally we will transfer that expenditure to respective auc and inturn to fixed asset.

Internal Order creation - KO01

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Regards.

Former Member
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Hi,

In brief,

1) Internal Order concept is almost same as Cost center.

Cost center concept is permanent in nature and more over these are relates to your busness processes.Ex: Production cost center, service cost center, etc.

Internal order is temporary in nature where you want to capture costs for some temporary purpose. Finally, you may settle these costs to some assets, CO objects,etc.

2) KO01

3) As explained in point no.1

Regards,

Murali