Internal Orders Concepts

Introduction

Internal Orders are used to manage small projects. You can set budget, post actual and do expenditure analysis for these small projects. Internal orders can be used to manage expenditure on Exhibitions, Trade shows, etc.

There are two types of Internal Orders – Real / Statistical

Real

• Real orders are temporary buckets for accumulating costs
• These are required when there is a need to reclassify expenses. This process is called SETTLEMENT. Costs are accumulated in an Internal order and then settled to other Cost centers, General Ledger accounts or projects.

Statistical

• Internal Order only gathers information
• There is no need to settle/reclassify costs
• The actual financial postings are assigned to a legitimate CO receiver, such as a single cost center

Internal Order Business Process

 

Transaction Code Used in Internal Order

s.no.	Description	Transaction Codes
1	Create Internal Order	KO04 / KO01
2	Create Internal Order (Statistical)	KO04 / KO01
3	Create Internal Order Group	KOH1
4	Assign Internal Order to Group	KOH2
5	Create Internal Order Budget	KO22
6	Automatic / Full Settlement – Individual	KO88
7	Automatic / Full Settlement – Collective	KO8G
8	Close Internal Order	KO02
9	Display Budget	KO23
10	Change Budget	KO24
11	Display Budget Supplement	KO25
12	Change Budget Return	KO26
13	Display Budget Return	KO27
14	Change Budget Document	KO2A
15	Display Budget Document	KO2B

 

For detailed, step-by-step instructions on SAP Internal Order follow along with my video tutorial below

SAP Internal Order Training

SAP Internal Order Configuration Steps

 

Activate Order management in Controlling area

Tcode: OKKP

 

Define Order Type

Tcode: KOT2_OPA

Internal Order field selection

 

Create Model Order Type

Tcode : KOT2_OPA

Same as Internal Order created in last step

Order Category here is 03

 

Create Accrual Order

Tcode: KOT2_OPA

Order Category: 02

 

Maintain Number Ranges for Orders

Tcode: KONK

Step 1: Create New Group

Similarly create group MK14 Model Order and MK14 Accrual Order

Step 2: Select the Order type 12io, 12ao, created in last step and assign to Group

 

Create Model Order

Path: SPRO – Controlling – Internal Orders- Order Master Data – Screen Layout – Define Model Order

Model Order 3003001 created

Now assign this Model Order to Internal Order type 12IO: KOT2_OPA

Thus, Model order values will be auto populated in this order type

 

Create Budget Profile

Path: SPRO – Controlling – Internal Orders – Budgeting and availability control – Maintain budget profile – New Entries

 

Maintain Budget profile in Order Type

Tcode: KOAB

Path: SPRO – Controlling – Internal Orders – Budgeting and availability control – Maintain budget profile in order types

 

Define Tolerance limit for availability control

Path: SPRO – Controlling – Internal Orders – Budgeting and availability control

• Usage: 80: Budget exceed 80%, get warning message
• Usage: 100: Budget exceed 100%, get error message

 

Specify exempt cost element from availability control

Path: SPRO – Controlling – Internal Orders – Budgeting and availability control

Cost Element specified here is not checked for budget control

 

Set up availability control again

Path: SPRO – Controlling – Internal Orders – Budgeting and availability control

 

Maintain Allocation Structure

Path: Controlling – Internal Orders – Actual Postings – Settlement -Maintain Allocation Structure – New Entries

Now select each of the Assignment and assign CE group

Now assign receiver to assignment. So, assignment is receiving cost through CE assigned earlier. This cost can be settled with controlling using CE category 21 (Internal settlement) or to Finance using CE category 22 defined in last steps

Direct OH: Direct OH are activity cost: CE Category 43

Settlement

Indirect OH: 41 Category CE

Settlement

 

Maintain Source Structure

Path: Controlling – Internal Orders – Actual Postings – Settlement

Source

 

Maintain Settlement Profile

Path: Controlling – Internal Orders – Actual Postings – Settlement

 

Assign Settlement Profile to Order Type

Path: Controlling – Internal Orders – Actual Postings – Settlement – Enter settlement profile in Order Type

 

Update Model Order

Tcode: KOM2

Settlement Rule – Go to – Settlement Parameters – Update allocation structures

 

Business Process

Internal Order as a Real Order with Budgetary control

Create Internal Order

Tcode: KO01

Data populated from Model Order. Click on settlement rule and below entry

Save: Internal Order created: 3002000

Maintain Budget for the Internal Order

Tcode: KO22

 

Supplement / Addition to an existing budget

Tcode: KO24

 

Reduce the original budget

Tcode: KO26

 

Maintain CE Planning for Internal Order

Tcode: KPF6

Layout: 1-401

Set Planning Profile to SAPALL

 

Maintain Activity Planning for Internal Order

Tcode: KPF6

Planner Profile: SAP102

 

SKF Planning for Internal Orders

Tcode: KPD6

 

Post actuals to Internal Order

Tcode: FB50

Document 500004 was posted in company code MK14

Item 002 Order 3002000 budget almost exhausted – 90% budget used

Document 500005 was posted in company code MK14

 

Check Internal Order Report

Tcode: KO02

Internal Order: 3002000

Path: Extras – Cost Analysis Report