Table of Contents
Internal Orders Concepts
Introduction
Internal Orders are used to manage small projects. You can set budget, post actual and do expenditure analysis for these small projects. Internal orders can be used to manage expenditure on Exhibitions, Trade shows, etc.
There are two types of Internal Orders – Real / Statistical
Real
- Real orders are temporary buckets for accumulating costs
- These are required when there is a need to reclassify expenses. This process is called SETTLEMENT. Costs are accumulated in an Internal order and then settled to other Cost centers, General Ledger accounts or projects.
Statistical
- Internal Order only gathers information
- There is no need to settle/reclassify costs
- The actual financial postings are assigned to a legitimate CO receiver, such as a single cost center
Internal Order Business Process
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Transaction Code Used in Internal Order
s.no. | Description | Transaction Codes |
1 | Create Internal Order | KO04 / KO01 |
2 | Create Internal Order (Statistical) | KO04 / KO01 |
3 | Create Internal Order Group | KOH1 |
4 | Assign Internal Order to Group | KOH2 |
5 | Create Internal Order Budget | KO22 |
6 | Automatic / Full Settlement – Individual | KO88 |
7 | Automatic / Full Settlement – Collective | KO8G |
8 | Close Internal Order | KO02 |
9 | Display Budget | KO23 |
10 | Change Budget | KO24 |
11 | Display Budget Supplement | KO25 |
12 | Change Budget Return | KO26 |
13 | Display Budget Return | KO27 |
14 | Change Budget Document | KO2A |
15 | Display Budget Document | KO2B |
For detailed, step-by-step instructions on SAP Internal Order follow along with my video tutorial below
SAP Internal Order Configuration Steps
Activate Order management in Controlling area
Tcode: OKKP
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Define Order Type
Tcode: KOT2_OPA
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Internal Order field selection
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Create Model Order Type
Tcode : KOT2_OPA
Same as Internal Order created in last step
Order Category here is 03
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Create Accrual Order
Tcode: KOT2_OPA
Order Category: 02
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Maintain Number Ranges for Orders
Tcode: KONK
Step 1: Create New Group
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Similarly create group MK14 Model Order and MK14 Accrual Order
Step 2: Select the Order type 12io, 12ao, created in last step and assign to Group
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Create Model Order
Path: SPRO – Controlling – Internal Orders- Order Master Data – Screen Layout – Define Model Order
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Model Order 3003001 created
Now assign this Model Order to Internal Order type 12IO: KOT2_OPA
Thus, Model order values will be auto populated in this order type
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Create Budget Profile
Path: SPRO – Controlling – Internal Orders – Budgeting and availability control – Maintain budget profile – New Entries
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Maintain Budget profile in Order Type
Tcode: KOAB
Path: SPRO – Controlling – Internal Orders – Budgeting and availability control – Maintain budget profile in order types
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Define Tolerance limit for availability control
Path: SPRO – Controlling – Internal Orders – Budgeting and availability control
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- Usage: 80: Budget exceed 80%, get warning message
- Usage: 100: Budget exceed 100%, get error message
Specify exempt cost element from availability control
Path: SPRO – Controlling – Internal Orders – Budgeting and availability control
Cost Element specified here is not checked for budget control
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Set up availability control again
Path: SPRO – Controlling – Internal Orders – Budgeting and availability control
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Maintain Allocation Structure
Path: Controlling – Internal Orders – Actual Postings – Settlement -Maintain Allocation Structure – New Entries
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Now select each of the Assignment and assign CE group
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Now assign receiver to assignment. So, assignment is receiving cost through CE assigned earlier. This cost can be settled with controlling using CE category 21 (Internal settlement) or to Finance using CE category 22 defined in last steps
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Direct OH: Direct OH are activity cost: CE Category 43
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Settlement
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Indirect OH: 41 Category CE
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Settlement
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Maintain Source Structure
Path: Controlling – Internal Orders – Actual Postings – Settlement
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Source
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Maintain Settlement Profile
Path: Controlling – Internal Orders – Actual Postings – Settlement
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Assign Settlement Profile to Order Type
Path: Controlling – Internal Orders – Actual Postings – Settlement – Enter settlement profile in Order Type
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Update Model Order
Tcode: KOM2
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Settlement Rule – Go to – Settlement Parameters – Update allocation structures
Business Process
Internal Order as a Real Order with Budgetary control
Create Internal Order
Tcode: KO01
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Data populated from Model Order. Click on settlement rule and below entry
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Save: Internal Order created: 3002000
Maintain Budget for the Internal Order
Tcode: KO22
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Supplement / Addition to an existing budget
Tcode: KO24
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Reduce the original budget
Tcode: KO26
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Maintain CE Planning for Internal Order
Tcode: KPF6
Layout: 1-401
Set Planning Profile to SAPALL
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Maintain Activity Planning for Internal Order
Tcode: KPF6
Planner Profile: SAP102
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SKF Planning for Internal Orders
Tcode: KPD6
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Post actuals to Internal Order
Tcode: FB50
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Document 500004 was posted in company code MK14
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Item 002 Order 3002000 budget almost exhausted – 90% budget used
Document 500005 was posted in company code MK14
Check Internal Order Report
Tcode: KO02
Internal Order: 3002000
Path: Extras – Cost Analysis Report
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Thank you sharing excellent tutorial on SAP Internal order. This post explains SAP Internal Order business process, Internal order configuration steps and various test scenarios. Video further shows how to execute these steps in SAP. Very good tutorial
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