Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks.

• These can provide more detail for an individual cost center (such as orders for individual trade fairs being supported by the marketing cost center) or represent activities separate from the cost center (such as a research and development project or an investment project).
• 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 final settlement and archiving.

Implementation Considerations

Order management within a company usually differentiates between commercial orders, and internal orders.

• The costs for commercial orders (production or sales orders) are ultimately billed to customers whereas the costs for internal orders are used to provide internal transparency.
• For internal orders, a further distinction can be made between overhead orders (such as, advertising or trade fair orders) and investment orders whose costs can ultimately be capitalized (such as in-house construction of an assembly line).
• Order management within a company usually differentiates between sales-oriented orders, and internal orders.
  • Sales-oriented orders (production or sales orders) are intended mainly for the logistical control of input factors and sales activities.
  • Internal orders are categorized as either:
    • Internal order management is the most detailed operational level of cost and activity accounting. It can be used for:
      • Unordered List ItemCost monitoring, for example, where more detailed analysis is required than is possible in cost element accounting or cost center accounting alone.
      • Unordered List Item Assisting decision-making, when you need to decide between in-house production and external procurement.
• An enterprise’s internal orders can be used for different controlling purposes

Masterdata

New Finance tables in S/4 for Transactional Data

Periodic tables

Enterprise Structure Part of the Customizing

Customizing