Hi,
INTERNAL ORDERS Are used to get the cost incurred in particlar business activity of your business .
Let say the business has its acitivities diversified and you want to know the cost incurreed for each activity , then you will go for internal order to get the cost for each activity for a particular month
More over internal orders are used in Controlling point of view and not SD perspective.
Internal orders purpose is
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 continous 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.
Kapil
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