What is Internal Orders in SAP

The internal order module within SAP Controlling provides the means for assigning planned costs and actual costs incurred for particular event carried out within an organization or for particular employee.

If a manager wishes to track the costs associated with, say, cost of marketing seminar, cost of AGM then the Internal Order module of SAP can be used to do so.

Use of Internal Orders in SAP will be restricted for special events like trade shows etc. where cost can be accumulated initially and then after assessing the results of the event, costs can be settled (I.e. allocated) to respective cost centers.

Statistical Internal Orders in SAP are meant only for statistical postings. These internal orders are used in cases where Cost Center is already defined for a cost occurred but separate track is required for reporting Purpose. E.g. Employee expense is posted to a cost center but telephone expenses may be tracked using Statistical Internal Orders in SAP.

Different type of statistical Internal Orders in SAP

Following reports will be generated by using Statistical Internal orders functionality in SAP.

  • Telephone Expense- Each phone to be created as a Statistical Internal order
  • Vehicle Expense- Each Vehicle to be created as Statistical Internal Order
  • Employee Expense– The employees will be defined as internal orders and the planned and actual expenses report per employee will be available to control and administrative overheads

CAPEX (Capital Expenditures) will be captured through real Internal Orders in SAP which need to be settled at the end of the Period.

Either Cost Center or Internal Order in SAP will be a mandatory field for every Financial transaction line item, so that every cost will get booked into Controlling. Whenever required the standard reports are available generate the report for Planned versus Actual expenditure showing variances.