If you have added the field Internal order in the Asset Master as a
statistical order and you want your depreciation
posted not only to the cost center but also to this order.
In transaction OAYR in the IMG you define
how depreciation posts to the depreciation posting rules - there is a CO
assignment box where you have to tick both cost centres and internal orders.
What is internal order? Explain with example and how it is related to
An internal order is used to accumulate cost for a specific project or task
for a specific time period. An internal order is therefore used for a short
period with a specific deadline.
Your internal order will usually settle to cost centers (and not visa versa)
according to the settlement rule in the order setup.
An internal order can therefore be used to group all the expenses incurred to
plan and hold a conference over a 3 month period. The order can be settled on a
monthly basis to cost centers. When the conference is finished the order can be
settled finally. The cost of the conference will then be spread over 2 or more
cost centers, but can be viewed in total on the internal order when needed.
Internal Orders - It is an instrument used to monitor costs and, in some
instances, the revenues of an organization.
Uses of Internal orders
- Monitoring the costs of short-term jobs
- Monitoring the costs and revenues of a specific service
- On going cost control
Internal order categories
- Overhead Orders
- Investment Orders
- Accrual Orders
- Orders with revenue
Cost centers are not for specific job. e.g If you have open Trade-fair /
exhibition (1 month period), then to allocate cost, you can use Internal Orders
(Say IO) you can post to IO, and from their to various cost centers. If
management were to ask you the cost of that exhibition, Internal Order will help
Cost center is a responsible center in SAP. It cannot be defined as
statistical but in transactions it may become as per other co objects.You will
be able to find out the performance of the cost center using activities and plan
values with actual value. This is lowest cost object in SAP. This will become a
statistical object when you allocate the cost to other higher objects. Cost can
be allocated to other cost centers or co objects but not fi objects like
GL,assets, inventory etc. can be defaulted in transactions through cost element.
It cannot be a cost object for a revenue element, revenues are always taken for
other higher CO objects. No budget functionality is available but planning
functionality is available and is always measured for a year in business.
Internal order is the second CO object - which can be defined as statistical
or real. You will be able to define Budget and planning figures - more than one
year also. Can control the postings of FI through budget controls. You can have
the report of Plan vs actual including commitment. Cost cannot be allocated but
settled through settlement rules and profiles. The receiver of the values can be
any object not like Cost center - can be CO objects and FI objects. Ideal for
R&D expenses capitalisations, etc. Status profile is linked to this which
controls many individual transactions in each status which is a part of this
Internal order. It can also receive postings of activities from Cost center.
Settlement profile is an wonderful tool for variety of settlement - needed for
FI and CO - legal requirements also and Revenue requirements also for any
All SAP CO orders like Production order, Plant maintenance order, etc will
behave like Internal order with more functinalities.