SAP Internal Orders Concept

Internal order is an important Sub-Module of SAP Controlling which provides an additional edge to track the cost/revenue for management reporting over the other reports like Cost center, Profit-center etc.
Do you have a question in your mind when we already have cost center for Management reporting what is the need of the Internal Order?
Cost center tracks/captures the cost with the cost carrier like cost element over a long period of time may be month end or fiscal year end.
Internal orders are used for capturing/analysis the cost for the Occasional expanses for the smaller events/projects. It provides an overview from the cross-department expanses which are booked on different cost centers. These are temporary cost collectors.
Where Internal Order come into the picture??
Scenario: In Organization there are various events such as trade fairs, training seminars, sales exhibition etc all around the year. Now let us assume that if the business wants to know how much cost incurred for this event, they would not be able to find it on cost center basis. Since Cost center may have been booked for the others alike events. This is the place where Internal Orders come in picture to track the cost/expanse.
Benefits of Internal Orders.
  • Its helps to track the costs and revenues for the specific event or services.
  • Validate the actual cost against the allocated.
  • Its helps to control cost beyond a certain limit
Internal order classes
1.Overhead controlling
Internal Order Types
There are mainly two internal Order Types.
  • Statistical order
  • Real order
The internal orders that are used for the reporting purpose only are know as the statistical order.
Internal Orders that are used as an transaction related to the primary cost are known as the Real order. These are not posted directly to the cost center. These are settled as the cost object at the end of the period.
How to create an Internal Order.
T code: KO01.
SAP path –Accounting – Controlling – Internal Orders – Master Data – Special Functions – Order – Create.
Select the controlling Area and order type.



Provide the all the relevant information for the booking the Internal order
Select the Currency and tick Statistical order here in the Control Tab.



Please enter and save, now the Internal Oder is created.
Thanks for Reading
Author: Sanket Jha

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