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Former Member

? is Internal order

Dear experts

what is internal order ? for what purpose we r creating IO

I am waiting for ur reply

thanks in advance

Rams

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6 Answers

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    Former Member
    Aug 22, 2007 at 11:18 AM

    hi

    internal order is used for collecting all costs realted to a given job or an event or an individual item.For ex An individual truck,Individual telephone,Trdae fair,marketing campaing etc

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    Former Member
    Aug 22, 2007 at 11:20 AM

    Hi

    Internal orders are used for particular task.Ex: any sponsership etc all the expenses relating to that will be posted to internal order and settle at the end of the task.

    we have statistical orders and real orders

    additional information

    1) An internal order is created for the capital project by the controlling

    department.

    2) When the internal order is saved, automatically an asset under

    construction is created for Factory warehouse.

    3) The Internal order is allocated the budget of 50,000 USD.

    4) Purchase orders are raised by the purchase department for the

    purchase of various materials for the construction of warehouse.

    5) Purchase department will refer this internal order (investment order),

    while creating the purchase order.

    6) System will check the purchase order value against the Internal order

    budget. In configuration we define whether the system should give an

    error message or a warning message if the purchase order exceeds

    the budget.

    7) Goods receipts are posted against the purchase order. This results in

    the internal order being debited with the values of purchases.

    8) Thus various expenses incurred for the capital project during the month

    are posted to the internal order.

    9) At the month end the cost from the internal order is settled to the Asset

    under construction.

    10) This process of debiting expense to internal order happens every

    month until the Warehouse is constructed.

    SAP INTERNAL ORDER CONFIGURATION Part (III)

    Page 4 of 49

    11) When the final Factory warehouse is ready all the costs from Asset

    under construction is settled to the Final asset called as Factory

    Warehouse

    12) Any remain unutilized budget will be returned.

    From configuration perspective on settlement, the following are important steps:

    1. Maintain allocation structure (path -IMG à Investment Management à Internal Orders as Investment Measures

    à Settlement Maintain Allocation Structures) An Allocation structure comprises one or several settlement assignments. An

    assignment shows which costs (origin: cost element groups) are to be settled

    to which receiver type (e.g. cost center, order and so on)

    2.Maintain Settlement Profile

    IMG a Investment Management a Internal Orders as Investment Measures

    a Settlement Maintain Settlement Profile

    Here we define a range of control parameters for settlement.

    3. Maintain number Ranges for Settlement Documents

    IMG à Controlling à Internal Orders à Actual Postings à Settlement

    Maintain Number Ranges for Settlement Documents.

    regards

    prasad

    accenture

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    Former Member
    Aug 22, 2007 at 11:23 AM

    If want to estimated the cost from a Similar Type of Expenditure.i.e Telephone exp and petrol exp. In that case we has been treated as one type of cost is booked one type of Internal order.

    Assign the points if useful

    ram

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    Former Member
    Aug 22, 2007 at 11:25 AM

    hi

    internal order is an order which is defined for analyzing cost for a particular event.for example: if i want to analize the cost for particular party arranged in the company we can go for internal order so that you can analize cost as over all cost as well cost for that particular event at the same time and it will be settled at the month end by settlement profile by departmental wise.

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    Former Member
    Aug 22, 2007 at 11:25 AM
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    Former Member
    Aug 23, 2007 at 08:14 AM

    Hi

    There are many types of Internal orders.

    1.Statistical Internal order: This IO is created to know/ track the details of a particular GL expense account.That is the break up of a Gl account can be seen through that IO.

    2.Capital IO: for the Assets under construction, IOs are created where all the expenses are booked throu the GL accounts and the IO is settled when the Order is converted into asset.

    3.Production Order:The production order is created for each batch of production and is settled when the production is over and throu the settlement of produciton orders in period end closing, the stock gets updated.

    Hop this information is useful.

    Regards

    Vardhini

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