Why would you use an internal order? Here a few examples:
You're managing an event with several cost centers.
You'll settle major repair costs to a production line cost center.
You're responsible for a fleet of service vehicles with a cost center.
You're managing a capital project with a budget.
You need to measure revenue and cost for a non-standard event.
Each of the above examples require:
An order with actual/plan cost, and a settlement rule or a periodic reposting cycle to cost centers.
An order with actual/plan cost, and a settlement rule to a profitability segment.
An order with statistical cost, and a real cost-center assignment.
An order with an investment profile, budget, and availability control.
An order with revenue, and perhaps a sales order line item assignment.
You can see the combinations and possibilities of internal orders are quite flexible.
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Marjorie Wright is an SAP expert, author, and speaker, and is the founder of Simply FI-CO, LLC, a boutique SAP training consulting company. She is an education consultant in SAP FICO and financial supply chain management. With more than 25 years of training and accounting experience across multiple industries, she has conducted training for more than 3,500 learners.