Skip to main content

SAP Internal Order

An Internal Order is a self-contained mini project cost object, i.e. it's a collection of costs, but not a full project with WBS and network relationships. The Internal Order should settle to Fixed Asset, Project, Cost and/or Profit Centers at the accounting period (month) end.
  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.

Sachin Khandagale 
SAP MM Consultant
SAVIC Technologies  


Popular posts from this blog

What is Cloud Services and Cloud Computing?

A cloud service is any service made available to users on demand via the Internet from a cloud computing provider's servers as opposed to being provided from a company's own on-premises servers. Cloud services are designed to provide easy, scalable access to applications, resources and services, and are fully managed by a cloud services provider.
On the other hand, Cloud computing is a type of computing that relies on shared computing resources rather than having local servers or personal devices to handle applications. In its most simple description, cloud computing is taking services ("cloud services") and moving them outside an organization's firewall. Applications, storage and other services are accessed via the Web. The services are delivered and used over the Internet and are paid for by the cloud customer on and as-needed or pay-per-use business model.
Cloud Delivery Models
Cloud computing can be divided into several sub-categories depending on the physical lo…


When it comes to addictions and the problem that come with them, it is difficult to draw a line on the genesis of the whole vicious matter especially when the victim is going through a destructive phase of the addiction cycle.While there are many forms of addictions, there are those that have defiantly been with the human race for the longest time such as drug and sexual types of addictions and the paper focuses on such types. Addictions in their nature affect the deepest parts of a human being such as the physical and psychological and since they have the potential of chaining the addicted person in ways that are uncontrollable and unhealthy, the need to come up with relatively correct information about their nature becomes imperative.
What is the exact nature of addictions, are they behavioral or genetic? There are divergent schools of thought concerning its nature and while one faction such as the doctors propose that they are caused by genetic and environmental factors, others i…

New SAP Analytics Cloud Content for SAP Business ByDesign

We’re excited to announce the release of new pre-packaged analytics content for SAP Business ByDesign!

For months, our engineering teams have been working hard on a multi-faceted plan to tighten the integration of SAP Analytics Cloud with select SAP Analytics Cloud applications. These plans include an extensive cross-functional team focused on developing content and APIs for more than 20 applications.

Pre-packaged content is an excellent opportunity to extend native application reporting, with advanced, purpose-built analytics from SAP. Moreover, SAP Analytics Cloud content is free-of-charge, can be deployed as is, or can be fully customized to suit your needs.
Here’s what has been delivered for SAP Business ByDesign.
Financial Performance Easily visualize the performance of key financial metrics across your organization, with drill paths and filters which allow you to track profitability across regions and by product.
Procurement Track, spend, and maintain controls over time…