Internal Order Training Session

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SAP Internal Order

 Training

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Internal OrderInternal order is an virtual place of

collecting/pooling the costs of a particularactivity/task. i.e. it is a method to collect thosecosts and business transactions related to thetask/activity. It is a means of tracking costs of aspecic !ob" service" or task . Periodically the costs

#hich are pooled in an internal order can be settledto an asset or to a cost center or to a $% Account orto an order. Thus" #hile recording you need not

analy&e the costs. 'ust record and pool the costs ininternal order. After that (generally at the end ofthe month) these costs are analy&ed and settled torelevant elements (like asset or cost center etc).

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 *i+erence bet#een IO and,,Internal orders are an e-cellent means of managing

costs. Internal orders have many controls such as-ecution prole" status prole" budget prole" planprole etc to manage the costs.

Internal Orders are used for short term purpose like Trade airs" 'ob airs etc." #here as ,ost ,entersare used for long term purpose to capture the dayto day costs.

inally you have to settle the Internal orders to any

cost ob!ect" #herein ,ost centers are used todistribute/assess the costs of the company they arenot settled.

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-ampleSAP Implementation in a ,ompanyloor ,onstruction

 Trade air etc

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0eal OrderIn the primary cost posting" the costs are

updated to the real order.In the periodic process of order settlement"you allocate the actual costs to controlling

ob!ects. 1ou can settle portions of the ordercosts to many ob!ects.2hen you create a real order" you mustassign the order to a company code. If you

have selected business area balance sheetsin inancial Accounting" you must alsoassign the order to a business area.

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Statistical Order 1ou use the statistical order to evaluate costs #hich cannot be

itemi&ed in detail in cost element or cost center accounting. 1ou achieve this by assigning the costs to both the statisticalorder and the cost center.

 1ou immediately see the costs in the order (statistical" forinformation purposes only) and the cost center (real costs).

 The cost center to be posted can be stored in the order masterdata. The system then nds the cost center automatically.Other#ise" you must specify the cost center as #ell as theorder to complete the posting document. 1ou also have theoption on a statistical order #hether to record a company codeand a business area on the order master record.

If you make these assignments" you can only post transactionsto controlling ob!ects" such as cost centers" #hich belong tothe same company code and business area. or cross3companycode or cross3business area controlling" do not assign acompany code or business area on the statistical order.

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ProcessAll postings to be done in $% accounts and

IO #ill be the cost ob!ect

At the month end the internal order needsto be settled to some cost center" A4, oranother ob!ect

very month the IO needs to be &ero

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I Posting taking IO as ,ostOb!ect

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Posting in I

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5O67 0eport for

IO

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Settling the IO

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 T3,odes used,reate IO 8 5O97,hange IO 8 5O9:

*isplay IO 8 5O9;

Settlement of IO 8 5O<<IO 0eport 3 5O67

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SP0O 3 =enu

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,onguration StepsActivate Order =anagement in your

controlling Area

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*ene Order Type

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Internal Order >umber0anges

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Investment =anagement

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=anaging Investment Prole