internal order

[Former Member]

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

[Former Member · Accepted solution]

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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