Creating and Managing Internal Orders in SAP FICO

Internal orders in SAP FICO are used to track costs and revenues for specific tasks, projects, or areas of responsibility. This guide provides a step-by-step explanation of how to create and manage internal orders with examples to illustrate the process.

Step 1: Create an Internal Order

To create a new internal order:

• Log into SAP and use transaction code KO01 to create an internal order.
• Alternatively, navigate via the menu: Accounting > Controlling > Internal Orders > Master Data > Create.
• Select the appropriate Order Type (e.g., IO01).

Example: An order type "IO01" is used to create an order for an overhead project.

Step 2: Enter Basic Order Details

Provide the essential information for the internal order:

• Enter a Description for the order (e.g., "Marketing Campaign 2024").
• Specify the Company Code (e.g., 1000).
• Set the Validity Dates (e.g., 01/01/2024 to 12/31/2024).
• Assign a Responsible Cost Center (e.g., HR001).

Example: An order "100001" is created with the description "Marketing Campaign 2024," valid for the fiscal year 2024.

Step 3: Define Budget for the Internal Order

To control costs, define a budget for the internal order:

• Use transaction code KO22 to set the budget.
• Select the internal order and specify the Budget Amount (e.g., 50,000).
• Enable Availability Control to ensure costs do not exceed the budget.

Example: A budget of 50,000 is set for order "100001" to monitor expenses.

Step 4: Post Costs to the Internal Order

Costs can be posted to an internal order using various transactions:

• Use transaction code FB50 for manual journal postings.
• Provide the internal order number in the Order Field.
• Enter the relevant Cost Element and Amount (e.g., 5,000 under salaries).

Example: A cost of 5,000 is posted to order "100001" under the cost element "400000 - Salaries".

Step 5: Monitor Internal Order Costs

Track costs and budgets using reports:

• Use transaction code S_ALR_87012993 to view actual, planned, and committed costs.
• Analyze variances between budget and actual costs.

Example: A report shows actual costs of 10,000 against a budget of 50,000 for order "100001".

Step 6: Settle Internal Order Costs

Internal orders need to be settled to cost objects like cost centers or projects:

• Use transaction code KO88 to settle the order.
• Select the internal order and specify the Settlement Rule (e.g., to cost center "HR001").
• Execute the settlement to transfer costs to the designated cost object.

Example: Costs of 20,000 from order "100001" are settled to cost center "HR001".

Step 7: Close the Internal Order

After completing the order's activities, close it to prevent further postings:

• Use transaction code KO02 to change the order status to Closed.
• Ensure all costs are settled and budgets are reviewed before closure.

Example: Order "100001" is closed after all costs are settled and the project is completed.

Conclusion

Creating and managing internal orders in SAP FICO allows for efficient tracking and allocation of costs for specific projects or activities. By following these steps, organizations can ensure proper cost control and reporting for internal operations.