Internal Orders - Primary Settlement vs Secondary Settlement

Internal Orders
Our current settlement profile allows for settlement from primary to
secondary.
In the Business Intelligence (BI) project the secondary accounts are not included in the
fin statements. This causes problems within certain Comp. Codes when looking at the
income statements at plant level.
Another issue with the settlement to secondary accounts is that the
budget displays on the primary account but the settlements from PM comes
through on the secondary account. This causes further calculation
issues when evaluating budgets.
Will the settlement profile for primary to primary settlement provide an answer or should we include sedondary accounts in the Business Intelligence project?.

HI,
as PIET mentioned secondary cost elements are CO unique. If there is a need to display these values in accounting (you are using reconciliation ledger or Fi/CO online integration), use CO substitution (OKC9) callup-point 60 to assign account number(s) to secondary cost element(s). Otherwise just only one account number (OK17) captures to value of all secondary cost elements.
BR Christian

Similar Messages

  • Internal Orders & settlement to Inventory Accounts(G/L Accounts)

    Hello
           Could anyone share his/her knowledge on the business processes that might be involved in the use of Internal Orders for small projects(minor costs) and then settling it to Inventory Accounts.
    My Client uses Internal Orders to capture costs for small projects like Advertising campaign, Claim for warranty, House keeping charges etc.and once after all the charges are captured, they settle the Internal Orders to Inventory Accounts? (which is kind of confusing to me)
    I know that Internal Orders are used to capture the costs for small projects but I am confused as to how are those costs settled to Inventory Accounts??
    Is it possible to settle those small project costs to Inventory Accounts? If so what would be the business processes or postings that would need to be posted to Internal Orders(Ex: Goods Reciept or Inv Consumption)
    I am preparing a Business process design document and I need to document this.
    Could anyone please share their knowledge and explain this, It would be really helpful and will be really appreciated. I would be really generous in assigning points.
    Thanks for your help!
    Sandeep

    Hi Ashok,
    Thank you for your reply.
    The PCE does not have a default account assignment.
    The reason for this settlement is because we want to move the charges onto a  balance sheet account so they can be cross charged manually. The debits on the internal order are on a secondary CE as they came from an assessment out of a cost center.
    The flow should be:  CC assessment> IO> G/L
    CC assessment to IO happens on a secondary
    Debit sits on the IO on a secondary CE
    We want the IO to settle to a balance sheet G/L

  • Settlement Rule for Internal Order

    Hi All
    I have Maintained Settlement rule for Internal order as under
    CAT - FXA
    Settlement Receiver - Asset
    % - 100
    Settlement type - Full
    Now after settlement of above Order in KO88 . I want again use above internal order. Hence i have trying to put Settlement rule 50% for some anther asset but system gave me following error. Please guide on this issue.
    Total = 50.00%, ( Set.Type PER / Version / Actual settlement ), period 010/2011
    Message no. KD042
    Diagnosis
    You have entered distribution rules which settle 50.00% in total. This applies for settlement view ( Set.Type PER / Version / Actual settlement ) in period 010/2011.
    When checking the percentage total, the system found one of the following errors:
    The total percentage for the distribution rules is more than 100%
    The total percentage for the distribution rules is less than 100% and this is a rule for full settlement.
    The total percentage for the distribution rules is less than 100% and the 100% check is switched on in the settlement profile.

    Hi:
            Please refer to the contents of OSS Note 45612 - IM: pre-settlement does not work, or KD042... which states
    "Symptom
        1. If a preliminary settlement rule (for example, to cost center) is entered for individual items of capital investment measures with line item management, this rule is not considered during periodic settlement. There is no settlement to cost centers.
        2. If you enter a final settlement rule for individual line items of investment measures with line item management for a partial capitalization (that is, the percentage rate is less than 100%), then you receive the unjustified error message KD042 "Total percent = xx%".
    Additional key words
    KOB5, CJ70, CJ88, CJ8G, KO88, KO8G, preliminary settlement, partial settlement, partial capitalization
    Cause and prerequisites
        1. You did not enter the settlement type ACT in the preliminary settlement rule.
        You can check this in the Line Item Apportionment transaction by choosing the menu option "Goto" -> "Overview dist. rules" to display the distribution rule groups entered so far.
        The system displays rules which have no entry in the "SetTyp" field (settlement type, field name PERBZ).
        2. The check of the percentages is incorrect.
    Solution
        1. Install the following correction. Afterwards reverse the incorrect settlement, re-enter the preliminary settlement rule and settle again.
        2. Install the following correction. Afterwards, you can maintain the settlement rule for the partial settlement.
        Note: If you want to use a default settlement rule (maintaining the settlement rule from the master data maintenance transaction), then you are required to distribute the line items at 100%. In order to carry out a partial capitalization (settlement of less than 100%), you have to use menu path "Actual postings -> Period-end closing -> Settlement -> Line item "
    Regards

  • Internal Orders - settlement in Previous year

    Hi All,
    we have a balance sitting in Internal Orders which has to be settle. which was not settled in previous year. And previous fincal year is closed. How can we settle this amount? what are other options?
    Please advice,
    Misbah

    Hi,
    Generally settlement is done during period end as closing step.
    If situation permites and auditor will not having any objection, you can very well settle the internal order in current year. System will allow that.
    Regards,
    Vinod

  • Internal order with revenues: settling to FI and PSG

    Hi,
    I have this scenario:
    - internal order with revenues has to settle to FI when not TECO - this is working
    - when order status becomes TECO - it has to reverse the previous posting - it' s working
    and settle to PSG, acording to settlment rule - this is the part where I need help, because it's not working.
    Can anybody help me?
    Thanks,
    Lavinia

    Hi,
    Sorry for the delay and thank for you answer, but I have the PA transfer structure configured, also the settlement profile alows PSG and  the transfer structuer is alocate to the settlemnet profile. The thing is that when I don't have a RA key, the settlement to PSG is working fine.
    Anyway, the customer changed his mind and doesn't need  RA for this type of orders and for the moment I don't need a solution
    Best regards,
    Lavinia

  • Problem during Internal Order settlement

    Dear Sir,
    we have a scenario where we have Internal Order and using Internal Order we first bring cost to AUC and then settle AUC to final Asset .
    Against an Internal Order , under settlement rule we have created 1 number AUC and 2 different Final Assets .  We have been able to succesfully settle AUC to Final Asset (first Final Asset) . Now subsequently we want to settle the remaining AUC to the second final Assets and for settlement we used Tcode Ko88 . During Ko88 , we are getting the error :
    "Either the sender is already settled, or there is nothing to settle
    Message no. KD213 "
    Although there is balance available against AUC .
    We request you to kindly help us , as how to resolve the reported error .
    Regards
    Sonia

    Hi
    As you mentioned that you had settled the cost from internal order to AUC and then settlement from AUC to 2 final assets. For order to AUC settlement we use KO88.but for AUC to final assets you must use TCode AIAB and define distribution rule to settle to assets.
    As you already have settled the order values to AUC you have nothing to settle from order. As the order values fully transferred to AUC you are getting the error message "Either the sender is already settled, or there is nothing to settle".
    Now use the transaction AIAB to transfer the values from AUC to final assets.
    You cannot use transaction KO88 to settle AUC to final asset.
    This will resolve your problem.let me know if you still have any issue.
    Thank you
    venkat

  • Settlement Profile for Internal Order

    Dear Gurus
    What is a settlement profile for a internal order?
    Regards
    Kailash

    Hi Kailash,
    Settlement Profile is where you configure all the parameters to be considered and settlement to take place according to the.
    Main components of Settlement Profile are...
    1. Whether cost posted to Internal Order should be settled / should not be settled ( to the settlement receiver object)
    2. Allocation Structre, in which you give the source cost elements and receiver category and settlement cost element
    3. If more than one settlement receiver is given in the settlement rule of the Internal Order, on what proportion the cost has to be settled among them,
    4. What are the valid receivers to which the Internal Order can be settled etc...
    We create Settlement Profile and assign it in the Internal Order Type.
    For all the Internal Orders created using that Order Type, all the settlement parameters given in the Settlement Profile will be applied.
    Pls revert back if further explanation requried...
    Srikanth Munnaluri

  • Why internal order settlement is require

    why internal order settlement is require
    and in internal orders    acctual cost is plan cost is 100 and acctual is 150
    then which amount we have to settle in internal order
    regards
    venkatareddy

    Hey Venky,
    An internal order is usually used as an interim collector of costs and an aid to the planning, monitoring, and controlling processes needed. When the job has been completed, you settle the costs to one or more receivers (cost center, fixed asset, profitability segment, and so on).
    During settlement, some or all of the plan or actual costs incurred on an object are allocated to one or more receivers. The system automatically generates offsetting entries to credit the sender object. The debit postings assigned once to a sender object remain in place, even after settlement to a receiver (and can therefore be displayed). The costs settled are updated on the corresponding receiver object and displayed in reporting.
    To be able to settle an order, you must have saved a settlement rule in each of the senders. This settlement rule determines where the costs are to be settled to. You can achieve this in two ways:
    Settlement to One Receiver:You use this basic form of order settlement to completely settle the costs collected on the internal order. This is either to a cost center, or a G/L account under a settlement cost element. The system generates the appropriate settlement rule from the information contained in the internal order master data.
    Comprehensive Settlement:Definition of a comprehensive settlement rule gives you more settlement possibilities, for example, you can:Settle costs to a wide range of receivers (project, sales order, profitability segment, and so on).
    Specify how the costs are to be distributed between receivers.
    Define the cost elements under which the sender is to be credited and the receivers debited.
    Constraints:You can only use one of these settlement methods at a time: For example, if you defined settlement to one cost center in the master data for an internal order, then you can only define a more comprehensive settlement rule once you have deleted the first rule.
    Hope this helps. Requesting to reward points please.
    Rgds
    manish

  • Internal order settlment to GL (primary cost)

    Hi Friends,
    I got and issue like that client wants to settle internal order (primary cost) to GL only, but do not wants to settle secondary cost to GL.
    I maintain allocation structure for that where i include all the range of all primary and secondary element; and defined settlement rule in order master record for G/L. When i tried to settle it, it is also picking secondary cost element type-43 and settling to GL.
    client wants to settle only primary cost to particular GL. I tried to restrict it by reducing range from source, but than while settlment system is not alllowing.
    please let me know is there any restriction can be applied to settle secondary cost. 
    Thanks
    Subodh

    hi..
    I think you can try the following changes in your allocation structure to solve your problem :
    01.     Goto OKOA > set "can be settled Indicator "> donu2019t tick 100% validation.
    02.     Create Source structure (Exam:S1)with relevant and Not relevant assignments
                         And assign cost elements you want to settled to relevant and which you do not want to settle
                         assign to nonrelevant (you can define CE group also)
    03      Goto OKOA > Set the Source structure (S1) into the field.
    04        Goto order settlement rules set the source assignment u201Crelevantu201D  and set settlement type u201CPERu201D.
                   Only cost element group you assigned as relevant will settled and other part will remain in the order. Subsequently you can repost the other part to other object as per your requirements.
    kkumar

  • New internal order type--need help

    Dear all:
    i have a case need help.
    now i want to create a new internal order type ,and assign a new number range and a default settlement rule to it .
    the settlement rule is that the actual costs of this  internal order type need to be
    sent to a cost element .
    what should i do step by step?
    thanks!
    best regards!

    Hi,
    2. Order Master Data
    2.1 Define Order types (KOT2_OPA)
    IMG Controlling  Internal Orders Order Master Data  Define Order Types
    An Internal order is created under an Order type. An order type is used for storing various control parameters and various defaults while creating an internal order. It is used for classifying various types of internal orders according to usage for e.g. Real orders for trade fairs, real orders for Capital investment measure, Statistical orders for motor vehicle expenses.
    The order type is client-specific, which means that every order type can be used in all controlling areas. A number range is assigned to the internal order type.
    Click on “New Entries”
    Take a drop in the field Order category and select 01
    Enter
    Update the following
    Give Order Type :- Z810
    Description :- Traders First Real order type
    Object Class :- OCOST overhead
    Reference Order :- Collective order without automatic goods movement
    Residence time 1 :- 12 months
    Residence time 2 :- 1 month
    Check “Commit Management and Check Integrated Planning
    Activate CO Partner Updating -You activate this so that allocations between orders and other CO objects (cost centers, projects, etc.), the partner information is retained and whether for each order a totals record should be written.
    Save
    Click on “Field Selection”
    Here you can hide the various fields or make it as required entry or only display or available for input. Thus while creating internal order only those fields are displayed and available for input.
    Click Save
    2.2 Maintain Number Ranges for Orders (KONK)
    IMG Controlling  Internal Orders  Order Master Data Maintain Number Ranges for Orders
    Number Range needs to be assigned to the internal order type. Number range can be internal or external. In Internal numbering system automatically assigns a number from the given number range. In external numbering the user has to manually assign the number from the given number range.
    We will configure internal number range for our internal order type – Trade Fair
    Click on Group Maintain (From the menu bar)
    Click on Group  Insert (From the menu bar)
    Update the following
    From Number: - 910000000000
    To Number: - 919999999999
    Click in “plus icon” at the left bottom of the screen
    Click Save
    You will find internal order type Z810 in not assigned
    You need to assign the order type to the group we created above. Proceed as follows:-
    Position the cursor on: - Z810 Trade Fair real order type 
    Click on “Arrow”   Z810 Trade Fair real order type note it turns blue                                              
    Select Check mark Z810 A ltd India fair real order
    Click “Element Group”
    The internal order type Z910 moves under the group which can be seen as follows:-
    Z810: A Ltd India Trade fair real order / Z810 Trader Fair real order type.
    Click Save
    Select: - Z810: A Ltd India Trade fair real order / Z810 Trader Fair real order type.
    Click on “Pencil” icon.
    Click Back arrow.
    2.3 Define Model Orders
    IMG Controlling Internal Orders Order Master Data Screen Layout
    Define Model Orders
    Model orders are not orders in the commercial sense, but serve merely as references for creating "normal" orders. Model orders contain default values for the orders in an order type. The Model order is assigned as the reference order in the order type.
    When you create a new order, all the fields active in the relevant order type are copied from the model order to the new order.
    Example
    You want to settle all your marketing orders to the same sales cost center. Stipulate the cost center as the default value in the model order for marketing orders.
    When you create a new marketing order, the system defaults this cost center. If you want to settle the order to a different cost center, you can overwrite the default cost center in the orders.
    We will create a model order with some defaults and assign it to the Trade fair internal order type
    Click “Create CO Model Order”
    Press F4 and select ($$) 03 model order
    Click on the master data and update the following
    Order: - $$$ Z81000001
    Description text: - A Limited Trade affair
    Click Save
    Assign this model order to the order type Z810
    Update the reference order with the model order number $$$Z81000001 in the reference order field
    Click on save.
    3 Planning
    3.1 Maintain User-Defined Planner Profiles
    IMGControllingInternal OrdersPlanningManual PlanningMaintain User-Defined Planner Profiles
    Check the User defined planner profile ZOCM91 created by us contains the layouts for internal orders.
    Double click on General controlling
    Planning area: Cost element/activity inputs.
    Cost Center: Activities/Prices
    CCtr Statistical key figures
    Orders: Cost Element/Activity inputs
    Ord: Statistical key figures
    Select :- Orders: Cost element/activity inputs
    Double Click on Layouts for control
    3.2 Maintain Planner Profile for Overall Planning (OKOS)
    IMG  ControllingInternal OrdersPlanningManual PlanningMaintain Planner Profile for Overall Planning
    Here you can specify the time frame for which values are to be planned for Internal order. Further you can also default the number of decimal places and the display factor. Default cost element group while planning.
    Double click on “Define planning profile for overall planning”
    Click on “New Entries”
    Select “05 Planned Total”
    Profile: 810000 General Plan Profile – A Ltd
    Click Save
    Select back arrow
    Double click maintain planning profile for order type
    Give: - Z810 Trader Fairs Real order type
    Give Plan profile: - 910000
    Click Save
    4 Settlement
    4.1 Maintain Allocation structure
    IMG ControllingInternal OrdersActual PostingsSettlement Maintain Allocation Structures
    An Allocation structure comprises one or several settlement assignments. An assignment shows which costs (origin: cost element groups) are to be settled to which receiver type (e.g. cost center, order and so on)
    You have 2 options:- You can settle to a settlement cost element or settle by cost element i.e. settle using the original cost element.
    We will use settle by cost element.
    Click on “New Entries”
    Allocation stru :- Z8
    A Ltd : Internal order settlement structure
    Click Save
    Select Z8 Internal order settlement structure
    Double click on Assignments
    Click on “New Entries”
    Assignment :- 10 Settlement Primary cost Element
    Click Save
    Select 10 Settlement Primary cost Element
    Double Click on Source
    Give From Cost Element To Cost Element
    Save
    Click back arrow
    Note:-The color has become green
    Select: Settlement primary cost element
    Double click on Settlement cost
    Click “New Entries”
    Select CTR Cost Center
    By Cost Element  Check
    Save
    4.2 Maintain Settlement Profile
    IMG Controlling Internal Orders Actual Postings SettlementMaintain Settlement Profile
    Here we define a range of control parameters for settlement.
    Double Click on “Maintain Settlement Profiles”
    Click on “New Entries”
    Select “Settlement not allowed”
    Assign the allocation structure Z9 created earlier in the settlement profile.
    Click on “Save”.
    Select Back Arrow
    Double Click on “Enter Settlement Profile in order types”
    Give Settlement Profile “ Z9100”
    Click on “Save”.
    4.3 Maintain Number Ranges for Settlement Documents
    IMG Controlling Internal Orders Actual Postings SettlementMaintain Number Ranges for Settlement Documents
    You should define separate number range intervals for settlement documents for each controlling area.
    Click Group  Maintain
    Click Group Insert
    Update the following:-
    Give “From Number” 1000000000- To Number 1999999999
    Click on “+” at the bottom left side.
    Click 8100
    Click on “Arrow” icon.
    Select Settlement documents for “A limited” Check box
    Click “Element group button”
    Click “SAVE”
    Assign Points
    Zia

  • List of Open Internal Orders

    Hi SAP Gurus,
    What is the way to see all the open Internal Orders (Which is still not settled).
    Thanks in Advance,
    Manish

    Hi,
    You can do it via standard controlling report. For example:
    S_ALR_87012993 - Orders: Actual/Plan/Variance
    or this one, to see the settled part also
    S_ALR_87012998 - Orders: Breakdown by Partner
    Regards,
    Eli

  • Internal order discription in source doc

    Hi
    Is it possible to have the description of the internal order to appear on the source document (Cheque Payment Voucher, Cash Payment Voucher or Material Requisition Note).
    If so pls advice on that...
    Thanx.
    K

    Hey Felipe,
    You must have chosen Mexican Peso as Internal Order currency, because when you settle the order then Order gets credited in the object currency i.e. Peso. Moreover, if you have maintained OB22, then Balance Sheet account where Order has been settled would show all Parallel  currency in BSEG. or FBL3N.
    or change the order currency.
    might help you.......
    Chintan Joshi.

  • Asset under construction in internal order

    Dear All,
        can any one tell me how to create Asset under construction in internal order...
    Suresh patipati.

    You must have a separate asset class for Asset Under construction(OAOA) with line item settlement selection.
    Create an asset(AS01) under AUC asset class
    Then create internal order through KO01 and in Settlement rule mention the
    Category as FXA
    Settlement Receiver: AUC Asset
    % as 100% or as you require
    Save the entries.
    Now enter the capital expenditure using this Internal order.  After you finish with the postings settle the internal order(KO88).  On Settlement the values are transferred to AUC asset from Internal order.
    Now use AIAB & AIBU to distribute and Settle the AUC asset values between Main asset(s).  Here also in the settlement rule you must enter the settlement receivers.

  • Internal Orders - Year end closing

    Hi,
    I am trying to do Internal orders - year end closing - commitment carryforward via Tcode KOCF. When i execute it, i do not get any result. IT read, " There are no commitment records for conversion".
    Please help.
    Thanks.

    Hi Shelina,
    That is fine. What it shows is that all Internal Orders have been settled appropriately. You would only have a list if there are Internal Orders that have not been settled at Year end.
    I hope the above explanation helps.
    Do not forget to award the points please.
    Thanks and Regards,
    Jacob

  • Production Internal Order

    Hi Guys
    What is a production Internal order?
    how do costs flow to Internal orders and where do we settle these orders to.
    thanks
    srikanth

    Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving.
    Internal Order is one of the master data in controlling module.
    Assign Internal order to production order by selecting (either in CO01 or CO02)
    Header ---> Settlement Rule
    Enter ORD as Account Assignment category, Enter Internal Order Number in Settlement Receiver Field, Enter % and Enter Settlment Type.
    Carry out all production activities.
    After perfoming TECO, Execute Settlement Transaction KO88. The cost will be settled to internal order after performing K088 successfully.
    More Info about Internal Order:
    You can create an internal order to monitor the costs of a time-restricted job or the costs (and revenues, if required) for the production of activities. Internal orders can also be used for the long-term monitoring of costs.
    Overhead cost orders are used for the time-restricted monitoring of overhead costs (that are incurred when you execute a job) or for the long-term monitoring of parts of the overhead costs.
    Investment orders let you monitor investment costs that can be capitalized and settled to fixed assets.
    Accrual orders enable you to monitor period-related accrual calculation between expenses posted in Financial Accounting and the costing-based costs debited in Cost Accounting.
    Orders with revenues let you monitor costs and revenues that are incurred for activities for external partners, or for internal activities that do not form part of the core business for your organization.
    You can use model orders as a reference, when creating new internal orders.

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