An internal order is use to accumulate costs for a specific project or task in a specific time-duration. Therefore, an internal order is use for a short period with a specific deadline.
Purpose:
It can be used to group all the costs/expenses that could be incurred to plan and hold a marketing event, say over a 2 month period. And then the order can be settled periodically to a cost center.
Types and Difference
Then, what are the two types of internal order? It has two main types, namely; REAL and STATISTICAL order.
The difference between REAL and STATISTICAL is that, real order is required to be settled to a cost center. When an order is a real order, it is where you post a cost during posting in FI and in other modules. Example; when you prepare a purchase order for a marketing event and charge it to an order, the cost is post to an order not to a cost center. And the cost accumulated in the order are required to be settled to a receiver cost center.
WHEREAS, a STATISCAL order can not be settled to a receiver cost center. Being a statistical is specified during set-up of an order. When you post costs in FI, you post simultaneously to a cost center and to a statiscal order. No settlement of costs accumulated in the statiscal order at month-end.
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