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SAP Internal Order

An Internal Order is  a self-contained mini project cost object, i.e. it's a collection of  costs, but not a full project with WBS and network relationships. The Internal Order should settle to Fixed Asset, Project, Cost and/or Profit Centers at the accounting period (month) end.

  1. Monitor internal jobs settled to cost centers (overhead orders)
  2. Monitor internal jobs settled to fixed assets (investment orders)
  3. Offsetting postings of accrued costs calculated in CO (accrual orders)
  4. Display  the cost controlling parts of Sales and Distribution customer not  affect the core business of the company (orders with revenues).

 We  can use overhead orders for detailed controlling for a particular  object or activity. All costs related to this object or activity are  assigned to the relevant order. We can use orders as internal cost  objects.

 For example if the company participate in 2 trade fair to target new clients .

 Without  Orders ,  we post costs for the two trade fairs directly to the cost  center responsible for supporting these events. As external costs and  internal activities have the same cost elements on the same cost center,  we cannot easily determine which event created which costs.This means  that we cannot make any further analyses for comparison purposes.

 A further advantage is the wide variety of planning and budgeting functions provided for orders.

 As  With Orders , each event receives its own overhead order,  the costs  are collected separately. The settlement function allocates the order  costs to the cost center responsible for supporting the trade fairs,  which provides you with the organizational view of the costs. This  enables us to analyze and compare the results of the trade fairs, even  after the settlement has been made.

Sachin Khandagale 

SAP MM Consultant

SAVIC Technologies  

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