SAP CO internal order monitors the parts of the costs and in a few cases, it also monitors the revenues of the organization.
You can create an internal order to monitor the costs of a time-restricted job or the costs for the production of activities. Internal orders can also be used for the long-term monitoring of costs.
Investment cost related to fixed assets are monitored using Investment orders.
Period-related accrual calculation between expenses in FI and the costing-based costs debited in Cost Accounting are monitored using Accrual orders.
Costs and revenues incurred for activities for external partners or for internal activities that do not form a part of the core business for your organization are monitored using order with revenues.
How to create an Internal Order in SAP CO?
Use the T-code KO04 or go to Accounting → Controlling → Internal Orders → Master Data → Order Manager.
In the next screen, input the controlling area as shown below −
Click the Create button at the top to create a new internal order and enter the order type.
In the next window, enter the following details −
- Company Code
- Business area
- Object Class of the Order
- Profit Center
- Cost Center responsible for the internal order
After entering the above details, click the Save button at the top to create the internal order.