Internal orders Q&A

Internal orders

What is the purpose of defining Internal orders.?

An example would help us understand this much better.

Lets say in an organization there are various events such as trade fairs,

training seminars, which occur during the year. Now lets assume for a

second that these Trade fairs are organized by the Marketing cost center

of the organization. Therefore in this case marketing cost center is

responsible for all the trade fairs costs. All these trade fairs costs are

posted to the marketing cost centers. Now if the management wants an

analysis of the cost incurred for each of the trade fair organized by

the marketing cost center how would the marketing manager get

this piece of information across to them? The cost center report

would not give this piece of info

Now this is where Internal Order steps in .If you go through all cost

center reports this information is not readily available since all the costs

are posted to the cost center.

SAP, therefore provides the facility of using internal orders which comes

in real handy in such situations. In the above scenario the controlling

department would then need to create an internal order for each of the

trade fair organized. The cost incurred for each of the trade fair will be

posted to the internal orders during the month. At the month end, these

costs which are collected in the internal order will be settled from these

orders to the marketing cost center. Thus the controlling person is now

in a position to analyze the cost for each of the trade fair separately.

Thus internal order is used to monitor costs for short term events,

activities. It helps in providing more information than that is provided on

the cost centers. It can be widely used for various purposes .

How can you default certain items while creation of internal order

master data?

You can do so by creating a model order and then update the fields

which you want to default in this model order. Finally attach this model

order in the internal order type in the field reference order.

Once the above is done whenever you create an internal order for this

order type the field entries will get copied from the model order.

What is the configuration setting for the release of the internal

order immediately after creation?

You have to check the “release immediately” check box in the

internal order type.