INTERNAL ORDER CONCEPT
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.
Internal Order is temporary cost collectors. Internal Order contains all the properties like Order Type. Order Type will have settlement profile, allocation structure, budget profile, status profile and planning profile. Internal Order will also have different system status as Production Or Process Order
1. Create (CRTD)
2. Release (REL)
3. Technically Completed (TECO)
4. Closed (CLSD)
on basis of every status, different transactions allowed to post. These costs are settled back to different settlement valid receivers which are maintained in settlement profile. Settlement rule can be created and maintained againt order type
below is example of I.O
There is an flood occurs in your Organization and Company has approved to create an internal order.
All the costs relating to internal order will be booked to internal order. For example after 2 months of all the works completed, there are 5000 INR on your internal order. all cost booked to this internal order but we cann't leave that internal order like that. internal order need to settle to various cost centers. now comapany will decided how this needs to be settled between cost centers (in what ratio). same ratio need to maintain in settlement rule of internal order master data (KO02). Once you run the settlement run in KO88, the costs on the internal order will become ZERO (assumed that you are settling 100%), it will show cost balance as zero and all cost will be distributed to cost centers.
WBS elements are lower nodes or project.
For example if there is a project 0001
You will have different WBS elements
0001.A - Electrical Works
0001.B - Civil Works
0001.C - Erection Works
0001.D - Infrastrecture work etc.
wewill capture these costs on WBS elements. we can settle these costs to Assets under Construction or assets. You can also maintain the settlement strategy for this. You will do settlement the WBS elements by using T Code CJ88.
in certain condition, the revenues of the organization.
You can create an internal order to monitor the costs of a time-restricted job, periodic job or the costs (and revenues, if required). Internal orders can also be used for the long-term monitoring of costs.
Overhead cost orders can be used for the time-restricted or period based 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.
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.
Internal Order is temporary cost collectors. Internal Order contains all the properties like Order Type. Order Type will have settlement profile, allocation structure, budget profile, status profile and planning profile. Internal Order will also have different system status as Production Or Process Order
1. Create (CRTD)
2. Release (REL)
3. Technically Completed (TECO)
4. Closed (CLSD)
on basis of every status, different transactions allowed to post. These costs are settled back to different settlement valid receivers which are maintained in settlement profile. Settlement rule can be created and maintained againt order type
below is example of I.O
There is an flood occurs in your Organization and Company has approved to create an internal order.
All the costs relating to internal order will be booked to internal order. For example after 2 months of all the works completed, there are 5000 INR on your internal order. all cost booked to this internal order but we cann't leave that internal order like that. internal order need to settle to various cost centers. now comapany will decided how this needs to be settled between cost centers (in what ratio). same ratio need to maintain in settlement rule of internal order master data (KO02). Once you run the settlement run in KO88, the costs on the internal order will become ZERO (assumed that you are settling 100%), it will show cost balance as zero and all cost will be distributed to cost centers.
WBS elements are lower nodes or project.
For example if there is a project 0001
You will have different WBS elements
0001.A - Electrical Works
0001.B - Civil Works
0001.C - Erection Works
0001.D - Infrastrecture work etc.
wewill capture these costs on WBS elements. we can settle these costs to Assets under Construction or assets. You can also maintain the settlement strategy for this. You will do settlement the WBS elements by using T Code CJ88.
in certain condition, the revenues of the organization.
You can create an internal order to monitor the costs of a time-restricted job, periodic job or the costs (and revenues, if required). Internal orders can also be used for the long-term monitoring of costs.
Overhead cost orders can be used for the time-restricted or period based 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.
No comments:
Post a Comment