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Internal order concept.

Former Member
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Hi

Please let me know the concept of internal orders.

thanks

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi

Internal orders are 2 types, 1. Statistical Internal Order 2. Real Internal Orders

Stat IO: Which is statstical purpose, we can use it alongwith cost centre also. Here Cost Centre is Controlling Object but not stat IO

Real Internal: Which is keeping the value and we can do settlement also for this. Here, also we can cost centre but it is only statstical purpose. Here, In this case, Real Internal Order is the Controlling Object.

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Regards.

Answers (1)

Answers (1)

Former Member
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Hi

Manisha,

Internal order: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 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.

Regards

Aravinds

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