Orders Classified by Controlling Objectives

You can create internal orders for a time-restricted operational job, or for long term cost monitoring. If required, you can make a statistical posting to internal orders, to monitor costs from a different angle, as an alternative to doing so to a true object.

Orders for Time-Restricted Jobs

These internal orders are distinguished by their uniqueness and greatly varied durations.

You can create an internal order for each individual job, to collect all costs incurred in performing that job. These internal orders are often planned in several steps, depending on the technical planning progress or on the progress of the work itself.

You can continue to allocate the actual costs collected on these internal orders:

  • Either in the month the costs were incurred, using the actual costs in this month
  • Or after all the work for the order is completed
      • To display the costs as a total not only on the internal order, but also on the receiver.
      • Because the target account assignment had not yet been determined when the order was created

Typical examples of orders for time-restricted jobs are:

  • Investment orders for fixed assets produced in-house
  • Development and construction orders
  • Production orders in Controlling
  • Orders for services to a third party
  • Advertising and trade fair orders.

Internal Orders for Long-Term Cost Monitoring

Long-term internal orders are most often used to allocate the costs incurred for recurring deliveries and activities. They allow you to continuously monitor costs in more detail than is possible using a cost center. Additionally, you can break down and analyze serious cost center variances more quickly using these internal orders.

The actual costs collected on long-term internal orders are settled monthly.

Such internal orders often remain valid for several years. Some typical uses include:

  • Minor repairs
  • Maintenance of small equipment, such as wiring, lighting fixtures, and so on.
  • Individual vehicles from the company fleet
  • Operation of "administrative" equipment, such as photocopiers, telephone systems, and so on

Statistical Internal Orders

Statistical internal orders are typically used to evaluate costs that cannot be displayed in detail either in Cost Element or Cost Center Accounting. These orders allow evaluations from a viewpoint different to that used in Cost Center Accounting.

To achieve this, the debits for a cost center can receive an additional account assignment on a statistical internal order. The amount then appears under the original cost element, both on the cost center (cost effective) and the internal order (statistical).

You can post to a statistical internal order as a statistical account assignment object, without having to enter a true account assignment object. In this case, you have to state a cost center in the internal order control parameters (under "Control"). The cost-effective account assignment is then made to this cost center. If required, you can change the cost-effective cost center that is to be posted to when you enter the posting.

You can specify a company code and a business area in the internal order. All credits and debits for this internal order can then be made using only account assignment objects that belong to the specified company code or business area. For cross-company code controlling or cross-business area controlling you should not specify a company code or business area.

Unlike real internal orders, you can neither settle statistical orders, nor apply overheads to them.

You create a statistical order for each vehicle in your company fleet.

You post the costs incurred for fuel, repairs, insurance, and so on, to the vehicle fleet cost center, with an additional account assignment on the relevant statistical internal order.

On your cost center, you can see the total costs incurred for all the vehicles. From the individual internal orders, you can see how high the costs are for each vehicle.