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.

Order Manager

In the next screen, input the controlling area as shown below −

Controlling Area

Click the Create button at the top to create a new internal order and enter the order type.

Create Internal Order

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

Internal Order Detail

After entering the above details, click the Save button at the top to create the internal order.

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