Controlling

Questionnaire

Internal Oder Cost Object

Controlling

Introduction:

Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP
system enables you to monitor your internal orders throughout their entire life-cycle; from initial
creation, through the planning and posting of all the actual costs, to the final settlement and archiving.
An Internal Order is a self-contained mini project cost object. The Internal Order should settle to Fixed
Asset, Project, Cost and/or Profit Centers at the accounting period (month) end. It's a process similar to
overhead allocation. In turn, the Internal Order can also be settled into and serve as an interim
placeholder for overhead costs.

Internal order is a virtual place of collecting/pooling the costs of a particular activity/task. i.e. it is a
method to collect those costs and business transactions related to the task/activity. It is a means of
tracking costs of a specific job, service, or task. Periodically the costs which are pooled in an internal
order can be settled to an asset or to a cost center or to a GL Account or to an order.
This method of recording and settling the costs helps in analyzing the costs cost center wise, profit
center wise or cost element wise. This level of monitoring can be very detailed but allows management
the ability to review Internal Order activity for better-decision making purposes.

Definitions

Order types: Order type is a key that differentiates internal orders according to the purpose.
e.g. one Vehicle is being used by several departments.

Real orders: Real orders are the cost objects. Later we have to do settlements to the particular
receiver object.

Statistical Orders: Statistical orders are used for information purpose. Settlements are not
possible here.

Order category: Order category determines the technical properties of orders. Each order type
must be assigned to an order category. An order category can have more than one order type

Questionnaire
Internal Order

1) What business criteria do you use to classify your internal orders (for example, overhead orders,
accrual orders, investment orders, statistical orders, and so on)?

A:

2) What are the types of orders that will be used in the controlling area (such as investments, marketing,

etc.)?

A:

3) Should some of the orders be used for information purposes only - that is, should the real posting be

on the cost center?

A:

Cost Element Planning

1) Do you want to use integrated internal orders in cost center planning (such as repair orders,
marketing orders) and settle them to cost centers after planning at the cost element level?

A:

Overhead Calculation (Business Process)

1) What costs is the cost estimate based on when you compute overhead for internal orders?

A:

Settlement of Overhead Cost Orders (Planning Data)

1) Do you collect costs/expenses on an internal order that you want represented on a cost center?

A: