Orders Classified by Contents

The classification of internal orders by order contents is reflected in each order type, the attributes of which, define the way orders are processed in the system.

Overhead Cost Orders

The main purpose of this type of internal order is to collect the planned costs, and the actual costs incurred for a complex fixed asset or an operational job. This allows you to monitor the costs at all times using ongoing up-to-date variance calculations.

SAP distinguishes between orders used purely for object monitoring (advertising, trade fair orders) and productive, value-added orders that are not capitalized (orders for repair and maintenance work).

You create an overhead cost order for the painting work on one of your buildings, and use it to collect all the costs incurred for these maintenance tasks. You settle the costs incurred at given intervals (for example, each month) to a cost center.

Investment Orders

Investment orders enable you to monitor the costs for assets produced in-house, for example, the construction of an assembly line. You can also process maintenance tasks that are to be capitalized (for example, the replacement of an engine). To do this, you have all the asset under construction (AUC) functions from the Asset Accounting System, as well as numerous functions in Internal Orders your disposal.

The Investment Management module (IM) lets you manage your investment measures as internal orders and as account-based assets under construction (AUC). You define an order as an investment measure by assigning an investment profile to it. You can automatically create a corresponding asset under construction when creating this type of order. The internal order is the account assignment object for purchase orders and actual postings. The asset under construction is used:

  • As the cost object for repostings on the balance sheet on general ledger accounts for assets under construction
  • For creating the asset history sheet
  • For calculating depreciation and/or investment support if required

The costs are reposted to the appropriate asset, either at year-end, or after the order has been completed.

For more information, see Investment Management.

Accrual Orders

You use accrual orders to monitor the period-related accrual calculation between expenses posted in Financial Accounting and the costing-based costs debited in Cost Accounting. This enables you to distribute the expenses recorded in Financial Accounting as costing-based costs over several periods.

Vacation allowance and Christmas bonuses are

  • Determined in Cost Center Accounting.
  • Debited to the corresponding cost center
  • Credited to an accrual order

You need to create the accrual cost element with the accrual/overhead (cost element category 3) or accrual/target=actual (cost element category 4) cost element category.

Internal Orders with Revenues

You can use internal orders with revenues for the following:

  • If you are not using the Sales and Distribution (SD) component, internal orders with revenues can replace the cost-accounting parts of SD sales orders.
  • If you are not using automatic invoicing, you can use orders with revenues to compare costs and revenues. This is often the case with miscellaneous revenues (revenues that do not affect the organization’s core business).

You can settle internal orders with revenues to a G/L account. Alternatively you can settle them to a profitability segment to make a comparison between costs and revenues.

Model Orders

Model orders are not orders in a business sense. You can define model orders in customizing. Additionally, you can enter them as a reference in order types, for creating a "normal" order. Model orders only contain default values, and cannot be posted to.

Model orders can greatly simplify the creation of orders. This saves you entering data used repeatedly in orders within an order type. This also reduces any incorrect entries or typing errors. You can, however, overwrite the default values in individual cases if required.

Your marketing orders are always settled to the sales cost center. If you defined the sales cost center as a default value in a model order, this cost center is shown as the settlement receiver in each new marketing order.

If you wish to make an exception by settling a marketing order to another cost center, you can change the cost center defined in the order.