Wbs Vs Internal Order

[Former Member]

Hi Gurus,

I'd like to kow which are the advantages of using WBS vs I.O for tracking the expenses related to dicounts in/off invoices.

Award points for any helpful suggestion

Regards

C*

[Former Member]

Hi,

Following are the advantages of WBS Elements over internal orders

Only projects(WBS Elements) enables to create a hierarchical structure for the objects that collects costs.

Orders are always one – dimensional. Its not possible to distribute budgets for several orders in a structured form from top to bottom.

Projects also offers the advantage of their integration with networks & the functions of logistics. With orders, its not possible to carry out capacity & resource planning.

Thanks

Kishore

[Former Member]

Hi

WBS Element is also useful to monitor the costs each element wise here we can know where the exps exactly incurred ie., admn, prod,sales, marketing etc.,

Internal Order is useful to monitor the costs and revenue for a specific project, with I.O we can know total cost incurred to the project and revenue generated from the project.

[Former Member]

hi Carmine-

Without knowing the business scenario you have in mind ....

From a financial perspective both WBS-elements and internal orders are just cost collectors (in SAP terms: cost object). When the collection is complete, costs are settled to one or more destinations, e.g. fixed asset, P&L account or another cost object.

WBS-elements are part of SAP's Project System module. Internal orders are part of the Controlling or CO module of SAP. When you work with WBS-elements, you have available all kinds of functionality that has to do with project management like structuring a project, planning, assigning project leads etc. With internal orders you don't have all these kind of things ... it is just collecting costs and in the end settle those costs. Pls have look at the info available in the SAP help documentation.

If your primary focus is on collecting (and reporting) on costs and you don't have to deal with the real project management stuff ... stay with internal orders.

When it is about real projects ... think about the PS module.

rgds

Ben