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Internal orders are used to monitor overhead costs incurred for a specific event, project or activity. It can be used for a restricted period when executing a job, or for long-term monitoring of portions of overhead costs. Internal Orders are company code dependent. Internal order groups can be created for cross-company reporting.
Overhead cost orders will be used to collect actual costs incurred. This allows costs to be monitored continuously. The overhead costs assigned to the overhead cost orders are settled (in full) as costs to other cost collectors. This is generally on the periodic basis, at month-end.Internal orders plan and monitor the costs of a specific job.
Internal orders are4 types
1. Over head orders
2. Profitability orders
3. Investment orders
4. Production orders
You can create an internal order to monitor the costs of a time-restricted job or the costs (and revenues, if required) for the production of activities. Internal orders can also be used for the long-term monitoring of costs.
Overhead cost orders are used for the time-restricted monitoring of overhead costs (that are incurred when you execute a job) or for the long-term monitoring of parts of the overhead costs.
Investment orders let you monitor investment costs that can be capitalized and settled to fixed assets.
Accrual orders enable you to monitor period-related accrual calculation between expenses posted in Financial Accounting and the costing-based costs debited in Cost Accounting.
Orders with revenues let you monitor costs and revenues that are incurred for activities for external partners, or for internal activities that do not form part of the core business for your organization.
You can use model orders as a reference, when creating new internal orders.
