Production Internal Order

Question

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

Answer 1

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.