Difference between WBS Element & Internal Order

Question

<b>Dear Sap Guru's
Can someone throw some light on the differences between WBS Element & Internal Order?
Regards,
Amit</b>

Answer 1

Hi Amit,
To understand the difference between WBS Element & Internal Order, i shall take them one after the other.
To understand WBS elements, you need to understand the concept of <b>Project</b>.
<b>Project Definition</b> is the framework within which objects are grouped.
It provides the basis for the Work Breakdown Structure(WBS).
In principle Project Definition refers to a single Production Area or License Block
Objects could be sub-projects, phases of a project, distribution of activities, materials, services, general cost elements, etc.
Projects have a start and a finish date whether long term or short term.
<b>WBS</b> is the hierarchical model of the tasks to be performed in the project. It represents the sub-division of work into manageable components which can be budgeted, planned and controlled.
WBS is the operative basis for the further steps in project planning, e.g. cost planning, scheduling, capacity planning as well as project controlling.
WBS can be organized according to phases, according to functions/processes or according to objects (execution projects).
<b>Networks and Activities</b>
A network represents the process in a project or in a task in logical sequence, and is the basis for detail scheduling.
<b>Networks</b> are made up of two main components: <b>Activities</b> and <b>Relationships</b>.
Through the use of activities, a network represents the flow of a project. Activities are the starting point for planning, analysis and specification.
Networks are also used to generate requisitions of material and services.
On the other hand,
<b>Internal Order</b>
Is an instrument used to monitor costs and, in some instances, the revenues of an organization.
Internal orders can be used for the following purposes:
1. Monitoring the costs of short-term jobs
2. Monitoring the costs and revenues of a specific service
3. Ongoing cost control
Internal orders are divided into the following categories:
1. <b>Overhead orders</b> - For short-term monitoring of the indirect costs arising from jobs. They can also be used for continuous monitoring of subareas of indirect costs. Overhead orders can collect plan and actual costs independently of organizational cost center structures and business processes, enabling continous cost control in the enterprise.
2. <b>Investment orders</b> - Monitor investment costs that can be capitalized and settled to fixed assets.
3. <b>Accrual orders</b> - Monitor period-based accrual between expenses posted in Financial Accounting and accrual costs in Controlling.
4. <b>Orders with revenues</b> - Monitor the costs and revenues arising from activities for partners outside the organization, or from activities not belonging to the core business of the organization.
I hope the above helps.
Do not forget to award the points please.
Regards,
Jacob