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All About Internal Order in SAP

The document discusses internal orders in SAP, which describe individual jobs within a controlling area and support planning, monitoring, and cost allocation. Internal orders can be used to monitor costs settled to cost centers or assets, offset accrued costs, and display customer-related costs. The document provides an example of how internal orders allow analyzing and comparing costs of two trade fairs. It also outlines the six steps for creating a new internal order in SAP.

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Tito Tales
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148 views

All About Internal Order in SAP

The document discusses internal orders in SAP, which describe individual jobs within a controlling area and support planning, monitoring, and cost allocation. Internal orders can be used to monitor costs settled to cost centers or assets, offset accrued costs, and display customer-related costs. The document provides an example of how internal orders allow analyzing and comparing costs of two trade fairs. It also outlines the six steps for creating a new internal order in SAP.

Uploaded by

Tito Tales
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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All About Internal Order in SAP

Why Internal Order is Required?

Internal orders describe individual jobs within a controlling area. Orders support
action-oriented planning, monitoring, and allocation of costs. You can use internal
orders to:

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.

How to Create Creating Internal Order


Step: 1- Enter Transaction code KO04 (Order Manager) in the SAP Command Field
Step: 2- In the next screen, Press 'Create' button in the application toolbar to create
a new internal order
Step: 3- In the next dialog box, Select the order type to be created

Step: 4- In the next screen, Enter the following data

1. Enter the Company Code


2. Enter the Business area
3. Enter the Object Class of the Order
4. Enter the Profit Center
5. Enter the Cost Center responsible for the internal order
Step: 5- Press 'Save' button in the SAP standard toolbar, to create the internal order

Step: 6- Check the status bar for the newly created internal order number

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