SAP Internal Order: Conceptual Background and Usage For Harvey Norman

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 15
At a glance
Powered by AI
The key takeaways are that internal orders can be used to capture costs and revenues related to specific projects or events. They come in two main types - real orders which can be settled, and statistical orders which are for reporting purposes only. Internal orders allow for cost monitoring and comparison against budgets or plans.

The two main types of internal orders are real orders and statistical orders. Real orders can be settled to assets, cost centers or other cost objects, while statistical orders are only for reporting and cannot be settled. Real orders can be planned or budgeted, while statistical orders cannot. Real orders directly post costs, while statistical orders post costs to other cost objects.

Internal orders can be used to capture non-departmental costs, revenues from specific orders, and costs from large or small projects. They do not have a mandatory hierarchy but can be grouped together for increased reporting and settlement efficiency, such as by activity, project, or type of spend. Costs are generally posted to both the internal order and responsible cost center.

SAP Internal Order

Conceptual Background and usage for Harvey Norman


Introduction
Internal Orders Overview
 What are they ?
 How are they used ?

Real vs. Statistical


 Limitations and benefits
 To plan or not to plan
 Grouping
 Which type fits our requirements

Reporting
Internal Orders Overview
Internal Orders are a cost object in SAP Controlling
Module
The primary purpose of an internal order is to capture
costs and/or revenues related to a specific event or
project
Provide cost control and monitoring of short term jobs
and tasks
How are they used ?
Internal Orders are used to capture and monitor :
 Non departmental costs
 Revenues related to a specific order
 Large and small internal projects
Real Orders VS. Statistical Orders
Real Internal Orders - A real internal order tracks
costs that settle to :
 An asset
 A General Ledger
 Another cost object such as Cost Centre or Internal Order

Real Internal Orders can post plan :


 A new building or large maintenance project that will result in an asset
 SAP Implementation : settlement is split between asset and expense accounts
Real Orders VS. Statistical Orders (cont.)
Real Internal Orders can be planned or budgeted
 A plan allows for actual costs collected/committed to be compared with the plan assigned
to an order or group of orders
 A budget allows for costs collected/commited to be compared with the budget assigned
to an order or group of orders
 A plan can be exceeded , a budget cannot ( availability control)

Not all orders have to be settled


 Internal Orders can be used in the same manner as cost centres with regard to capturing
costs
 The key is to ensure that the values are assigned correctly within the OPEX section of the
profit and loss statement ( This can be accomplished by assigning functional areas)
Statistical Internal Order
This type of internal order is used for reporting
purposes and cannot be settled
The real costs are assigned to another cost object
When entering transaction must enter both cost
center and Internal Order
Statistical orders are used for the following types of
spend :
 Marketing
 Trade show costs
 Special Projects ( time and expense tracking )
A comparison
Options Real Statistical
Plan or Budget Benefit – allows for clear view Limitation – expected
of spend against amounts can be assigned to
expectations the order but not reported
Settlement Benefit – allows for cost Limitation- cannot be settled
collection and settlement Benefits- because settlement
according to user defined is not included , there is less
rules maintenance
Posting Benefit – costs are posted Benefit – costs are posted to
directly the relevant department
responsible for the costs
while the order allows for
specific reporting
Reporting Benefit – reports can be run Benefit – reports can be run
by order or group , viewing by order or group
actual , commitment and
plan/budget
Grouping
Internal Orders are not associated with a mandatory
hierarchy
Grouping orders together increases reporting and
settlement efficiency
Orders can be grouped by activity or project based
upon planned usage as follows :-
Dividend paid

Director 1 Director 2
dividend dividend
Reporting
Internal Order Reporting is divided into follwing
categories –
 Plan/Actual Comparison
 Actual/Actual Comparison
 Planning Reports
 Line Items
 Master Data indexes
 Summarization reports
 More Reports
Line Items (Reporting)
Creation/Usage of Statistical Order
Creation/Usage of Real Order
Dim 4 – Usage
Motor vehicles
Mobile expenses
Directors Dividend
Staff expenses
Sub contractors expenses
S_ALR_87012993

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy