Controlling Internal Orders

Controlling Internal OrdersControlling Internal Orders 11

Controlling Internal OrdersControlling Internal Orders


Course Overview ObjectivesCourse Overview Objectives Provide an overview of the CO moduleProvide an overview of the CO module

Identify CO internal order/budget terminology and conceptsIdentify CO internal order/budget terminology and concepts

Understand the internal order/budgeting processUnderstand the internal order/budgeting process

List the triggers for internal order/budget maintenanceList the triggers for internal order/budget maintenance

Describe the various tools for processing internal orders/budgetsDescribe the various tools for processing internal orders/budgets

List and describe internal order/budgeting reportsList and describe internal order/budgeting reports

Illustrate the integration between the CO and Funds Management Illustrate the integration between the CO and Funds Management modulesmodules

List the CO internal order roles and their authorized transaction codesList the CO internal order roles and their authorized transaction codes


Overview of Controlling (CO)Overview of Controlling (CO)Definition

Controlling (CO) represents the County’s flow of cost and revenue. It is also a management instrument for organizational decisions.

Controlling facilitates coordination, monitoring and optimization of all processes in an organization.

Controlling (CO) and Financial Accounting (FI) are independent components in the SAP R/3 system. However, the two components are tightly integrated and the data flow between the two components takes place on a regular basis.


SAP Financial and Purchasing SAP Financial and Purchasing ComponentsComponents

Manages vendor invoices

Manages responsibility accounting

The “Top” book of financial records

Manages customer billing

Manages fixed assets and depreciation

Accounts Receivable

FIFI

Controlling

Accounts Payable

Asset Accounting

FIFI

COCO

FIFI

General Ledger

FIFI

Manages purchasing/inventory

management

Materials Management

MMMM


FI ModuleOther

Financial Modules

HR/MaterialsManagement

Modules

ACCOUNTSRECEIVABL

E

ACCOUNTS

PAYABLE

ASSETS FUNDS MANAGEMEN

T

CONTROLLING

GRANTSMANAGEMEN

T

What Goes WhereWhat Goes Where

PAYROLL

PURCHASING

INVENTORYMANAGEMEN

T


Internal OrderInternal Order RealReal StatisticalStatistical

Internal Order GroupInternal Order Group

SettlementSettlement

ClosingClosing

Key CO Internal Order Key CO Internal Order Terminology (Internal Terminology (Internal

Orders):Orders):


Internal OrderInternal Order

Used to plan, collect, and settle the costs of internal jobs, tasks, or projects.

Examples: New Law Center Precinct One Benbrook Project WIC Site 01 Bedford etc.

Debits

Credits

Order Balance


Internal Order Internal Order (continued)(continued)

As internal orders are created, the following attributes are defined:

Order Type (ex: AUC* for Buildings, Public Health Services, etc.) Short Text (up to 40 characters) Company Code (will always be “TC01”) Business Area (typically “1000” for Tarrant County) Plant Functional Area (ex: Health Care, Roads & Bridges, etc.) Object Class (ex: Investment, Overhead, etc.) Responsible Cost Center

Debits

Credits

Order Balance

* AUC = Asset Under Construction;


Statistical Internal Statistical Internal OrderOrder

(informational purposes (informational purposes only)only)

Used to evaluate costs that are to be separated from other costs in cost element or cost center accounting.

Statistical orders are not settled.

Overhead cannot be applied to a statistical order.

Example: A statistical order for each fleet vehicle

Debits

Credits

Order Balance


Real Internal OrderReal Internal Order

Used for assets under construction (ex: buildings).

Costs charged to real orders are settled to assets under construction (AUC’s).

Overhead can be applied to a real order.

Examples: New law center

Debits

Credits

Order Balance


More On Internal More On Internal OrdersOrders

Debits

Credits

Order Balance

Internal Order Type(Code):

Order Number Range:

Real/Statistical Order:

Public Health Services Internal Orders (ZPHS)

400000 – 499999 Statistical

CDBG Internal Orders(ZCDB)

500000 – 599999 Statistical

ROW Internal Orders 600000 – 699999 Statistical

AUC for Software Development(ZASW)

910000 – 919999 Real

AUC for Buildings(ZABD)

920000 – 929999 Real

AUC for Infrastructure(ZAIN)

930000 – 939999 Real


Internal Order Internal Order GroupGroup

A hierarchical group of internal orders.

Examples: ROW State/ROW County CDBG Projects AUC Law Building etc.

After a internal order group is create, internal orders are assigned to that group.


Internal Order Internal Order Group Group (continued)(continued)

As internal order groups are created, the following attributes are defined:

Internal Order Group Name (10 characters) Description (up to 40 characters)


Internal Order Internal Order Group Group (continued)(continued)

Examples:

= internal order group;

= internal order;


SettlementSettlement(real orders only)(real orders only)

TWO TYPES:

Automatic Settlement – carried out on a monthly basis as part of month end closing process.

Full Settlement – carried out when a internal order (project) is completed.

Debits

Credits

Order Balance


ClosingClosing(real orders only)(real orders only)

Use to lock an internal order from any further changes/updates.

Occurs after full settlement

Debits

Credits

Order Balance


Internal Orders/Groups Internal Orders/Groups Business ProcessBusiness Process

1. Create Internal Order

2.Create Internal Order

Group

3. Assign Internal Order

To Group4. Create Budget for

Internal Order(if it has budget)

5. Settle Internal Order

(real orders only)

6. CloseInternal Order

(real orders only)


Process Triggers and OutputsProcess Triggers and Outputs (internal orders/groups) (internal orders/groups)

Process:

Trigger: Output:

Create an internal order(real) [KO04]

Need to track, budget, collect, and settle the costs for an AUC project .

A new internal order for AUC projects.

Create an internal order (statistical)[KO04]

Need to track, budget, and collect costs for a non-AUC project.

A new internal order for non-AUC projects.

Create an internal order group [KOH1]

Business need for collective reporting/processing of internal orders.

A new internal order group.

Assign an internal order to a group [KOH2]

Business need for internal order to be included in an internal order group.

An internal order included in an internal order group.


Process Triggers and OutputsProcess Triggers and Outputs (internal orders/groups) (internal orders/groups)

Process:

Trigger: Output:

Create an internal order budget [KO22]

An internal order which has budget.

An internal order budget.

Automatic settlement of an internal order [KO88]

Month end processing.

An internal order which is settled for the month.

Full settlement of an internal order [KO88]

A completed AUC project.

A fully settled internal order.

Close an internal order [KO02]

An internal order for AUC project that has been settled.

A closed internal order.


1. Creating Internal 1. Creating Internal OrdersOrders

OPTIONS:

A. Manual Method (KO01)

B. Order Manager Tool* (KO04)

*The order manager tool allows you to see the existing internal orders as you are creating new orders.

Debits

Credits

Order Balance


1. Creating Internal 1. Creating Internal Order (continued)Order (continued)

A. Manual Method (KO01)

Debits

Credits

Order Balance


1. Creating Internal 1. Creating Internal Orders (continued)Orders (continued)

B. Order Manager Tool (KO04)

Debits

Credits

Order Balance



Debits

Credits

Order Balance

REAL Orders:

Note that the “Statistical order” checkbox is not selectedfor a real order.



Debits

Credits

Order Balance

REAL Orders:

Creating an “asset under construction” (AUC) for a real order.



Debits

Credits

Order Balance

REAL Orders – Creating AUC:

Note: Additional description, serial number, and “capitalized on”date can be added on the General tab.



Debits

Credits

Order Balance


Note: Same cost center entered earlier will be entered in the “Resp.Cost center” field on the Time-dependent tab.



Debits

Credits

Order Balance


Note:

If needed, the depreciation fields can be overwritten on the Deprec area tab.

Next, you would use the button to return to the Order Manager screen.



Debits

Credits

Order Balance


Note: After completing the setup of the AUC, you would choose the button to save the real order.


1B. Creating Internal 1B. Creating Internal Orders (continued)Orders (continued)

Debits

Credits

Order Balance

STATISTICAL Orders:

Note that the “Statistical order” checkbox is selected.


2. Creating An Internal Order 2. Creating An Internal Order GroupGroup

Create Order Group (KOH1)


3. Assign Internal Order 3. Assign Internal Order to Group to Group

OPTIONS:

A. Assignment during creation of order

group (KOH1)

B. Assignment after an order group has

been created (KOH2)


3. Assign Internal Order to 3. Assign Internal Order to Group (continued)Group (continued)

A. During creation of order group (KOH1):

= used to assign/add an internal order to the group.

= used to search for the desired internal order number.


3. Assign Internal Order to 3. Assign Internal Order to Group (continued)Group (continued)

B. After an order group has been created (KOH2):

= used to search for the desired internal order number to be assigned.


Current BudgetCurrent Budget – current value of budget including any – current value of budget including any additions (supplements) and subtractions (returns) additions (supplements) and subtractions (returns) [see formula below].[see formula below].

Original BudgetOriginal Budget – original value of budget for project. – original value of budget for project.

Budget SupplementBudget Supplement – additions to original value of – additions to original value of budget.budget.

Budget ReturnBudget Return – subtractions from original value of – subtractions from original value of budget.budget.

Key CO Budgeting TerminologyKey CO Budgeting Terminology (Internal Orders): (Internal Orders):

Budget: New Law Center

Commitment Actual Budget Salaries $60,000 $70,000Operating 15,000 25,000

Total 75,000 95,000

CURRENT BUDGET = ORIGINAL BUDGET + SUPPLEMENTS - CURRENT BUDGET = ORIGINAL BUDGET + SUPPLEMENTS - RETURNSRETURNS


4. Create Budget for Internal Order4. Create Budget for Internal Order (if applicable)(if applicable)

TWO TYPES OF BUDGET SETUP:

Assets Under Construction – Enter an overall budget amount and yearly budget amounts.

Non-Assets Under Construction – Enter just an overall amount.



Total 75,000 95,000


4A. Create Budget for Internal Order4A. Create Budget for Internal Order[ASSETS UNDER CONSTRUCTION][ASSETS UNDER CONSTRUCTION]

Change Original Budget (KO22)



Total 75,000 95,000

Note: Both overall and annual budget amount(s) are entered.


4B. Create Budget for Internal Order4B. Create Budget for Internal Order [[NON-ASSETS UNDER CONSTRUCTION]NON-ASSETS UNDER CONSTRUCTION]

Change Original Budget (KO22)



Total 75,000 95,000

Note: Only an overall budget amount is entered.


4C. Other Budget-Related4C. Other Budget-Related Transaction CodesTransaction Codes

Display Original Budget (KO23)

Change Budget Supplement (KO24)

Display Budget Supplement (KO25)

Change Budget Return (KO26)

Display Budget Return (KO27)

Change Budgeting Document (KO2A) [to edit text for budget docs]

Display Budgeting Document (KO2B) [to view text for budget docs]



Total 75,000 95,000


5.5.Settling An OrderSettling An Order(real orders only)(real orders only)



Total 75,000 95,000

TWO TYPES OF SETTLEMENT:

Automatic Settlement – carried out on a monthly basis as part of month end closing process.

Full Settlement – carried out when a internal order (project) is completed.


5A. Automatic Settlement 5A. Automatic Settlement of An Order [done of An Order [done

monthly]monthly]

Notes: Remove “Test Run” indicator and reexecute after successful test run.

Debits

Credits

Order Balance

Settle Costs From Order (KO88)


5B. Full Settlement of An 5B. Full Settlement of An OrderOrder

[done after project is [done after project is complete]complete]

Note: Remove “Test Run” indicator and reexecute after successful test run.

Debits

Credits

Order Balance

Settle Costs From Order (KO88)


5C. Collective Settlement of 5C. Collective Settlement of OrdersOrders

Note: With collective settlement, a variant (ex: INTORDERS) can be used to select/settle multiple orders.

Debits

Credits

Order Balance

Collective Settlement of Costs From Orders (KO8G)


6.6. Closing An OrderClosing An Order(Real Orders Only)(Real Orders Only)

Debits

Credits

Order Balance

Close Internal Order (KO02)

- used to close an internal order.


Internal Order ReportsInternal Order Reports

Display Actual Line Items for Internal Orders (KOB1)

Display Commitment Line Items for Internal Orders (KOB2)

Display Budget Line Items for Internal Orders (KOB4)

Display Actual Costs (KSB5)

Display Budget Document (KO2B)

Display Budget/Actual/Commitments (S_ALR_87013019)

Display Cost Centers Commitment Line Items (KSB2)


Internal Order ReportsInternal Order Reports(continued)(continued)

Display Actual Line Items for Internal Orders (KOB1)

- used to view document for selected line item.

- used to view details for selected cost element.

Note: The other “Display Line Item” reports (KOB2, KOB3) look identical to the above report.



Display Actual Costs (KSB5)





Display Budget Document (KO2B)

- used to view any long text for the budget document.



Display Budget/Actual/Commitments (S_ALR_87013019)



Display Cost Centers Commitment Line Items (KSB2)




Internal Order Integration With Internal Order Integration With Funds Management Funds Management (set up in Funds (set up in Funds

Mgmt)Mgmt)

Funds center #1 Fund ABC


Total 75,000 95,000Budget control is at the combination of the fund/funds center/ commitment item/functional area

Internal Order #7

Cost element Actual Plan Wages $10,000 $11,000Overtime 3,000 4,000Travel 6,000 6,000Utilities 4,000 3,000

Total 23,000 24,000

Internal Order #6

Controlling(Managerial Reporting)

Funds Management(Budget Control)

Note: There is a one to one relationship of cost objects to funds centers

Funds center #2 Fund DEF


Total 55,000 85,000

Cost Objects Funds center #1 Fund ABC


Total 75,000 95,000


CO Roles/CO Roles/Authorized TransactionsAuthorized Transactions

“CO – Internal Orders” Role - Create Internal Order (KO01) Change Internal Order (KO02) Order Manager (KO04) Collective Proc. Of Internal Orders (KOK2) Automatic Collective Proc. Of Internal Orders

(KOK4) Create Internal Order Group (KOH1) Change Internal Order Group (KOH2) Change Original Budget (KO22) Change Budget Supplement (KO24) Change Budget Return (KO26) Change Budgeting Document (KO2A)


CO Roles/CO Roles/Authorized TransactionsAuthorized Transactions

(continued)(continued)“CO – Display” Role –

Display Internal Order (KO03) Collective Display of Internal Orders (KOK3) Master Data List for Internal Orders (KOK5) Collective Printing of Internal Orders (KOK6) Display Internal Order Group (KOH3) Display Original Budget (KO23) Display Budget Supplement (KO25) Display Budget Return (KO27) Display Budgeting Document (KO2B)


Course Overview SummaryCourse Overview Summary(continued)(continued)

You are now able to:You are now able to:

Provide an overview of the CO moduleProvide an overview of the CO module

Identify CO internal order/budget terminology and conceptsIdentify CO internal order/budget terminology and concepts

Understand the internal order/budgeting processUnderstand the internal order/budgeting process

List the triggers for internal order/budget maintenanceList the triggers for internal order/budget maintenance

Describe the various tools for processing internal orders/budgetsDescribe the various tools for processing internal orders/budgets

List and describe internal order/budgeting reportsList and describe internal order/budgeting reports

Illustrate the integration between the CO and Funds Management modulesIllustrate the integration between the CO and Funds Management modules

List the CO internal order roles and their authorized transaction codesList the CO internal order roles and their authorized transaction codes


Accessing Training MaterialsAccessing Training Materials All TITAN training materials for Phase II are stored on the Tarrant All TITAN training materials for Phase II are stored on the Tarrant

County websiteCounty website This website is accessed through your Internet Explorer from any This website is accessed through your Internet Explorer from any

computer that has internet access; you do not have to be on the computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Tarrant County network. The URL for direct link to the Training Materials website is:Materials website is:

http://www.tarrantcounty.com/titan/lib/titan/training/index.asphttp://www.tarrantcounty.com/titan/lib/titan/training/index.asp Set up this website as a favorite in your web browser for quick future Set up this website as a favorite in your web browser for quick future

accessaccess

Enter the URL above in the addressEnter the URL above in the address field in your browserfield in your browser When you reach the website, go toWhen you reach the website, go to Favorites > Add to FavoritesFavorites > Add to Favorites in the in the Browser menuBrowser menu A pop-up window will be displayed withA pop-up window will be displayed with a default name for the site. Click OK.a default name for the site. Click OK. To access this site in the future, justTo access this site in the future, just click on the Favorites item in the menuclick on the Favorites item in the menu and highlight the name for the website.and highlight the name for the website. You will go directly to the website. You will go directly to the website.

http://www.tarrantcounty.com/titan/lib/titan/training/index.asp


Accessing Training Materials Accessing Training Materials (cont’d)(cont’d)

Review the instruction page to see how to use the websiteReview the instruction page to see how to use the website

Click on the Click on the CoursewareCourseware link at the top of the Instruction page link at the top of the Instruction page

A A Listing of CoursesListing of Courses will be displayed will be displayed

Click on the Click on the Course TitleCourse Title to see a general description of the to see a general description of the content of the coursecontent of the course

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Click on one of the buttons beside the Course Title to go Click on one of the buttons beside the Course Title to go directly to either the directly to either the Overview, Quick Reference Cards, or Overview, Quick Reference Cards, or TutorialsTutorials

These training materials will be available for your use and These training materials will be available for your use and reference at any timereference at any time


Running TutorialsRunning Tutorials An additional learning tool is being provided with the Phase II SAP An additional learning tool is being provided with the Phase II SAP

implementation -- implementation -- TutorialsTutorials Tutorials are simulations of the SAP system that take you through a Tutorials are simulations of the SAP system that take you through a

transaction step-by-step in a mock SAP environment. transaction step-by-step in a mock SAP environment. These can be viewed in two ways:These can be viewed in two ways:

► As a movie that takes you through the transaction in a demonstration, As a movie that takes you through the transaction in a demonstration, oror

► As an interactive, hands-on practice session that stops on each screen As an interactive, hands-on practice session that stops on each screen and directs you to make entries in fields or take actions per instructions and directs you to make entries in fields or take actions per instructions provided by the provided by the wizardwizard and in the and in the bubblesbubbles

Tutorials are provided with each course in the Finance and Tutorials are provided with each course in the Finance and Purchasing trainingPurchasing training

A list of the tutorials is provided at the end of each course.A list of the tutorials is provided at the end of each course. Go to the Training Materials website to access and run these Go to the Training Materials website to access and run these

tutorials. Detailed instructions are provided on the websitetutorials. Detailed instructions are provided on the website

Happy Tutoring!!


Training SandboxTraining Sandbox

An SAP environment An SAP environment (Training Sandbox)(Training Sandbox) where you can practice your where you can practice your skills in a real instance of SAP will be available after June 18skills in a real instance of SAP will be available after June 18

The sandbox can be accessed through the standard logon process The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation coursediscussed in Lesson 2 of the SAP Basic Navigation course

The only differences are:The only differences are:

Highlight the Training environment on the Logon pad Highlight the Training environment on the Logon pad Click logonClick logon Enter Enter 520520 in the Client field in the Client field Enter the same User Id and Password you are assigned for Enter the same User Id and Password you are assigned for

ProductionProduction

Feel free to practice any of the tasks in the basic navigation course and Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the any of the transactions included in other courses you take. Use the Quick Reference CardsQuick Reference Cards to walk you through the transactions. to walk you through the transactions.


Getting HelpGetting Help

1

2

3

Review the on-line help in SAP

Ask your peers or super user for assistance.

Review your training materials and notes.


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Problems with running tutorials?Problems with running tutorials? Training Mailbox –Training Mailbox – [email protected]@tarrantcounty.com

After utilizing the various methods of help on After utilizing the various methods of help on the previous page, if you still have questions or the previous page, if you still have questions or problems problems

oror

If you have problems at any time with If you have problems at any time with accessing SAP, printing, computer or network accessing SAP, printing, computer or network problems, etc.problems, etc.

Contact the Tarrant County IT Help Desk at Contact the Tarrant County IT Help Desk at 817-884-3507 817-884-3507

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Documents

Controlling Internal Orders