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Use an SAP internal order when you need to track the costs of a specific job, event, or investment separately from the day-to-day costs of a department. Start by deciding whether the order should collect actual costs for settlement or simply give you a separate view of costs posted to a cost center.
These examples apply to classic Internal Order Accounting in SAP ERP (ECC), SAP S/4HANA on-premise, and SAP S/4HANA Cloud Private Edition. If you use Public Edition, see the deployment glossary for the project-based approach. For the basics, see SAP internal order types, planning, and settlement.
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By Marjorie Wright
SAP Internal Orders are Controlling (CO) cost objects used to plan, collect, monitor, and settle costs for specific activities or purposes. They are commonly used for short-term projects, events, maintenance activities, marketing programs, and other initiatives that require separate cost tracking.
Cost centers typically represent ongoing organizational areas of responsibility, while Internal Orders provide more flexible cost tracking for specific activities, projects, or events.
Read more: SAP Internal Orders in S/4HANA: Types, Planning, and Settlement
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By Mohamed Elshinnawy
SAP planning estimates future costs, activities, and resource requirements. SAP budgeting establishes approved spending limits. In SAP Controlling (CO), plans support analysis and decision-making; budgets can support spending control when availability control is configured and active.
Read more: SAP Planning vs. Budgeting: Key Differences in SAP CO
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Presented by Janet Salmon at SAP Controlling 2013
Explore cost center, project, and internal order planning in this archived SAP Controlling conference presentation. Janet Salmon discusses more flexible planning interfaces and layouts while retaining the master data checks used in classic SAP ERP planning.
The session covers SAP ERP enhancement package-era functionality, including the changes introduced around SAP ERP 6.0 enhancement package 6. Use it to understand the planning approach in its original release context, and check your installed release and activated business functions before applying it.
Read more: SAP Cost Center, Project & Internal Order Planning