cancel
Showing results for 
Search instead for 
Did you mean: 

internal order

Former Member
0 Kudos

hi sap guru's

what is the use of internal order no in purchase order.

regards

p dhanasekar

Accepted Solutions (1)

Accepted Solutions (1)

former_member581212
Active Contributor
0 Kudos

An internal order is placed by an organizational unit of your company. Since billing is not performed, internal orders only contain free items. You can assign each free item to a cost center that is to be debited.

You can create an internal order for each of the following order types depending on its purpose:

Carrier route reserves (or miscounts)

Planning reserves for subsequent deliveries

Delivery of free copies to your company's internal organization

(internal delivery, internal retail to branch)

Delivery quantity for random distribution

Free voucher copies

This number is used to generate the PO

The number internal document number...in which the req. are created..and r req. to be converted into PO...

Regards

Priyanka.P

AWARD IF HELPFULL

Edited by: Priyanka Paltanwale on Sep 16, 2008 12:42 PM

Answers (2)

Answers (2)

former_member335885
Active Contributor
0 Kudos

Hi,

Posting to Cost Center and Internal Order

If you have added the field Internal order in the Asset Master as a statistical order and you want your depreciation

posted not only to the cost center but also to this order.

In transaction OAYR in the IMG you define how depreciation posts to the depreciation posting rules - there is a CO assignment box where you have to tick both cost centers and internal orders.

What is internal order? Explain with example and how it is related to 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.

Your internal order will usually settle to cost centers (and not visa versa) according to the settlement rule in the order setup.

An internal order can therefore be used to group all the expenses incurred to plan and hold a conference over a 3 month period. The order can be settled on a monthly basis to cost centers. When the conference is finished the order can be settled finally. The cost of the conference will then be spread over 2 or more cost centers, but can be viewed in total on the internal order when needed.

Internal Orders - It is an instrument used to monitor costs and, in some instances, the revenues of an organization.

Uses of Internal orders

Monitoring the costs of short-term jobs

Monitoring the costs and revenues of a specific service

On going cost control

Internal order categories

Overhead Orders

Investment Orders

Accrual Orders

Orders with revenue

Cost centers are not for specific job. e.g If you have open Trade-fair / exhibition (1 month period), then to allocate cost, you can use Internal Orders (Say IO) you can post to IO, and from their to various cost centers. If management were to ask you the cost of that exhibition, Internal Order will help you

Cost center is a responsible center in SAP. It cannot be defined as statistical but in transactions it may become as per other co objects.You will be able to find out the performance of the cost center using activities and plan values with actual value. This is lowest cost object in SAP. This will become a statistical object when you allocate the cost to other higher objects. Cost can be allocated to other cost centers or co objects but not fi objects like GL,assets, inventory etc. can be defaulted in transactions through cost element. It cannot be a cost object for a revenue element, revenues are always taken for other higher CO objects. No budget functionality is available but planning functionality is available and is always measured for a year in business.

Internal order is the second CO object - which can be defined as statistical or real. You will be able to define Budget and planning figures - more than one year also. Can control the postings of FI through budget controls. You can have the report of Plan vs actual including commitment. Cost cannot be allocated but settled through settlement rules and profiles. The receiver of the values can be any object not like Cost center - can be CO objects and FI objects. Ideal for R&D expenses capitalizations, etc. Status profile is linked to this which controls many individual transactions in each status which is a part of this Internal order. It can also receive postings of activities from Cost center. Settlement profile is an wonderful tool for variety of settlement - needed for FI and CO - legal requirements also and Revenue requirements also for any country.

All SAP CO orders like Production order, Plant maintenance order, etc will behave like Internal order with more functionalities.

Internal Order (Definition as per CO): -

An instrument used to monitor costs and, in some instances, the revenues of an organization.

Internal orders can be used for the following purposes:

Monitoring the costs of short-term jobs

Monitoring the costs and revenues of a specific service

Ongoing cost control

Internal orders are divided into the following categories:

Overhead orders - For short-term monitoring of the indirect costs arising from jobs. They can also be used for continuous monitoring of subareas of indirect costs. Overhead orders can collect plan and actual costs independently of organizational cost center structures and business processes, enabling continuous cost control in the enterprise.

Investment orders - Monitor investment costs that can be capitalized and settled to fixed assets.

Accrual orders - Monitor period-based accrual between expenses posted in Financial Accounting and accrual costs in Controlling.

Orders with revenues - Monitor the costs and revenues arising from activities for partners outside the organization, or from activities not belonging to the core business of the organization.

Thanks & Regards,

Kiran

Former Member
0 Kudos

thanks priyanka

regards

p dhanasekar