Internal Orders

[Former Member]

Hi

Can anyone tell me the exact function of an internal order.

Cant i fullfill most of the requirements through.

a) Profit centre accounting.

b) Cost Center.

c) Asset under construction

or

d) Investment manager.

Regards

Aravind

[sivaprasad_r]

Hi Aravind / Soujanya

Further to the comments from Mr. Rajaram,

WBS elements should be used in case of Large projects involving huge capital expenditure. Internal order should be used only for limited budget and availability control.

You have to decide which one you want to use. For using WBS elements, Project system module should be implemented.

Thanks

Siva

[Former Member]

HI

Let me give you an example which will remove this doubt forever.

Lets say in an organization there are various events such as trade fairs, training seminars, which occur during the year. Now lets assume for a second that these Trade fairs are organized by the Marketing cost center of the organization. Therefore in this case marketing cost center is responsible for all the trade fairs costs. All these trade fairs costs are posted to the marketing cost centers. Now if the management wants an analysis of the cost incurred for each of the trade fair organized by the marketing cost center how would the marketing manager get this piece of information across to them?

Now this is where Internal Order steps in .If you go through all cost center reports this information is not readily available since all the costs are posted to the cost center.

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 can be widely used for various purposes . If used intelligently it is a real handy tool.

Thus Internal order is basically a cost object which is used to monitor cost of a time restricted job.

There are various types of internal order the common ones being a Real order where you collect costs and settle it at the month end. The others are statistical orders and we also have capital orders for capital projects.

If helpful, plz assign Points.

Regards

Rajaram

[Former Member]

Hi Rajaram,

My name is Soujanya. The explaination that you've given is really good. I want to appreciate you from my end for this.

To add upto whatever you have told, I have a scenario. Let me explain it to you. In fact, my company deals with setting up of paint booths and we call each of them as "project".

Each project is unique in its own way (basically all these are made to order scenario), becasue each client has their own specifications.

Now, to capture the costs incurred for each project, I think I need to configure Internal orders (plz inform if there is something else apart from internal order for my scenario).

If internal order is the answer, then do I have to configure real order.

And One more clarification, what is the diff. between real, statistical and capital or any other type of internal order(if there exists any more).

If you have any documents pertaining to this. plz do forward the same to: soujanya_sap@yahoo.co.in

Apart from that if you have any documentation(prefreably screen shots) for product costing and activity type configuration, plz forward me the material.

thank you

regards

soujanya.