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Former Member

Internal order - question

Hi All,

I have a doubt in the concept about internal order :-

1) I have understood that internal order is meant for secondary costs only and the internal order is not tied to any G/L Account. Please correct me if my understanding is wrong here .

2) But if I have to post a payment to a vendor using the internal order, and if I have to post it to a specific G/L Account say Miscellaneous Expense account, I use the internal order as a reference and use the internal order as the cost object here . Please could someone help me in understanding internal order .

Regards,

Sushanth Hulkod

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1 Answer

  • Dec 26, 2009 at 12:45 AM

    SS

    Internal order system in SAP is very powerful tool to control the costs.

    We use internal order to monitor the costs of a specific event.

    Example: Advertisment Capaign, Small term project, Marketing event etc.

    We use internal order as cost object for collecting the cost related to paricular event.

    We can create plan costs/budget for each internal order and monitor the actual costs posted to internal order against the planned costs/budget.

    At the completion of specific event/project or every period end we can settle the internal order costs to other Cost objects.

    Your understanding of "Internal orders for secondary costs only" is not correct.

    We post primary costs also to internal orders.

    Hope you understand the internal order concept

    Best of luck

    Prasad

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    • Former Member Prasad Yarra

      Dear Prasad,

      Thanks for your reply.

      My conceptual doubt about responsible cost centre is now cleared .

      I have yet another doubt now. Suppose there is a meeting and if I create an internal order to monitor and track the costs of the meeting, to whom will the initial costs of the meeting be assigned .

      I know that the costs of the meeting will be assigned to the internal order, but who will take up the initial costs of the meeting or the cost of arranging the meeting .

      Regards,

      Sushanth Hulkod