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What is relation between cost center and internal order?


What is relation between cost center and internal order?

Former Member
Former Member replied


I think you posted this to the wrong group.  This really shouldn't belong in SAP GUI.

Generic answer is:

A cost center as you will know is for fixed reporting for a long time span as part of your company structure (cost center usually = department or work 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.


Dan Mead

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