SAP FI/CO - Why SAP uses

Internal Orders?

Internal Order Accounting

1. Why an Internal Order is required?2. Creation of Internal Order3. Operational Expenditure Postings4. Settlement of Internal Orders to

Cost Centers5. Internal Order Reporting

Internal Order Vs. Cost Center

An Internal Order is used to accumulate cost for a specific project or task for a specific time period. An internal order is therefore used for a short period with a specific deadline. Whereas A Cost Center is for fixed reporting for a long time span as part of your company structure (cost center usually = department or work center).

Internal Order Concepts

Buy Gifts for Staffs’ Lucky Draw

Annual Dinner Event

JohnGift 1

MaryGift 3

MikeGift 2

Post the gifts’ cost to an Internal Order temporarily i.e. for a short period of time until the Annual Dinner Event where the staffs’ names will be known from the lucky draw.

Why an Internal Order is required ?

Buy Gifts for Staffs’ Lucky Draw

Annual Dinner Event

JohnGift 1

MaryGift 3

MikeGift 2

Once the winning staff’s names are known, it is easier to allocate the gift’s cost to the respective staff’s Cost Center.

Post the gifts’ cost to an Internal Order temporarily i.e. for a short period of time until the Annual Dinner Event where the staff’s names will be known from the lucky draw.

Create an Internal Order

All Internal Orders are to be classified as Order Type. An Order Type is the categorization of an Internal Order

Create an Internal Order

Double click on Define Order Types to branch out to create Internal Order.

Create an Internal Order

After executing Define Order Type , You can double-click on any Internal Order to check its details.

Create an Internal Order

Since we are creating Internal Order, we need to select Order Category to be Internal Order Controlling.

Create an Internal Order

Now, we have created a new Order Type ZSUN of Order Category - Internal Order (Controlling).

Assign Number Range

The system does not allow the interval for number range to overlap. So it proposes the interval itself .

Assign Number Range

Assign number range from here to Not Assigned Internal Order ZSUN and save it.

Create an Internal Order

The most important parameter is Settlement Profile which determines to which feasible object the cost contained in this Internal Order can be settled to.

Maintain Settlement Profile

While maintaining Settlement Profile, To be Settled in Full option means an Internal Order cannot be deleted or closed if the balance in that Internal Order is greater than zero. Can be Settled means an Internal Order can be closed/deleted even if the balance is greater than zero.

Create an Internal Order

The Order Type can be used for more than one Controlling Area.It is above the Controlling Area.

Create an Internal Order

The Object Class in our example is Overhead cost which is a gift. Give the description and save it. Enter the values for Company Code, Business Area, User Responsible and Description.

Create an Internal Order

System Status is very important because until we don’t release the Internal Order, we cannot put values into it.

Visit us @ ERPTRAINING9.COM