INTERNAL ORDERS, REAL ORDER, STATISTICAL ORDER, INTERNAL ORDER PLANNING, BUDGETING,

AVAILABILITY CONTROL FOR BUDGETING, SUPPLIMENT THE BUDGET, SETTLEMENT OF INTERNAL

ORDER TO COST CENTRE

1. Internal Orders are temporary cost collectors. Internal Order inherits all the properties from the
Order Type. Order Type will have settlement profile, allocation structure, budget profile, status
profile and planning profile etc. Internal Order will have different system statuses.

All the costs relating to internal order will be booked to internal order. For example after 3 months of all
the works completed, there are 100000 INR on your internal order. You cannot leave that internal order
like that. Now you want to settle that internal orders to various cost centers. Management will decided how
this needs to be settled between cost centers (in which ratio). You will maintain the same ratio in
settlement rule of internal order master data (KO02). Once you run the settlement run in KO88, the costs
on the internal order will become ZERO (assumed that you are settling 100%) and will be distributed to
cost centers.

Internal orders can have planning and also budgeting, but cost centres can have only planning

(Balances will be zero)

Real orderbooked to various cost centres

order type Internal order Statistical order Reporting (some specific reason you want to track
some costs) we will book the expense to cost centre only but in real you want to track where that
particular expense is going, hence in that case you create that particular cost as statistical internal order,
budgeting is possible against statistical internal order

order is always created under order type with number ranges, like GL created under account group with
number ranges

Go to OKKP, selecting your controlling area and activate your order management in your controlling area
Go to tcode kot2_opa and create new order type, there select the order type internal order which
navigates to new screen, here give unique 4 dight alphanumeric number for order, give order category
as internal order and select the object class and save
You can create number range from this screen it self for your inter order type

Go to TCODE-KO01and create internal order, select your order type and controlling area and give
description for your internal order, object class is automatically populated from order type, external
order number is legacy order number, go to control data and release the order
JEST TABLE maintains the various status of the order like created, released, budgeted etc
Go to vendor invoice and post the transaction after selecting the internal order you created under the
order type

Then go to kob1 and see the line item report for order u just posted
When u post a transaction using both cost centre and order, the system behaves in following manner

In tcode kob1the internal order is shown as actual order, see VT status 4

But when u execute cost centre line item report in ksb1 it shows as statistical report, see VT 11 means
statistical, that means it will for reporting, if you want to transfer the cost from this cost centre also it
will not allow as it is statistical
Here real posting went to internal order and statistical posting went to cost centre
 2. HOW TO CREATE STATISTICAL INTERNAL ORDER
Go to KO01, create new order, in control tab define it as statistical internal order, and save

Then when I tried to post a transaction using this statistical internal order system will through a error,
because its telling it needs to tag a cost centre to post a real order, but earlier it accepted to post with
order 200020 even without selecting cost centre because that order was created as real order
HERE I AM POSTING TO COST CENTRE ONLY, BUT FOR SOME PURPOSE I NEED REPORT
AT INTERNAL ORDER LEVEL SO I CREATED STATISTICAL INTERNAL ORDER
Here you can observe in ksb1 the cost centre have received real order observe value type 4

But here in Kob1, internal order has received statistical posting observe value type 11
THUS WHEN U POST ANY TRANSACTION TO STATISTICAL INTERNAL ORDER SYSTEM
WILL ASK TO TAG A COST CENTRE FOR REAL ORDER

3. Internal order planning is done in TCODE- KPF6, its done similar to cost centre planning by
selecting versions 0(sap default version) or user created version
After planning you can see the report in S_ALR_87012993, which shows actual/plan/variance and
variance percentage

4. Difference between budgeting and planning in SAP

Level of details: When you record your planning in SAP, you are able to detail your planning
as much as you can. You can plan by cost element, activity type, resource, etc. You can also
plan using quantities and capacities. On the other side, budgeting uses one lump sum
amount per object.
Availability control: Availability control is the function you use to make the system checks
the available amount to be spent on a specific object and issue warning or error messages at
some levels of spending. Availability control can be activated using budgeting and can’t be
activated for planning. This means that you are just able to report on the variances occurred
between planning and actual expenditures, but you cannot automatically stop spending
over the planned amounts which is possible only using budgeting.
Allowed controlling objects: Planning can be done on all types of controlling objects, so you
can plan on cost centers, profit centers, internal orders, WBS elements while budgeting is
applicable only on the temporary or the project-like CO objects (internal orders and WBS
elements). Actually, you can record a budget for a cost center but you can’t use availability
control with it which is the main purpose of budgeting.

To understand better the budget will always comes first and planning comes next
For ex- management will allocate budget to various departments and then you plan to
spend that available budget to various activities over a certain period of time
In tcode okob you can create budget profile, which need to be tagged in order type , this budget
profile controls the how budget need to managed while creating actual budget in KO22

Timeframe allowed in the past

Value which specifies how far into the past you can plan/budget for. The start year is the reference point.
Examples
The start year is 2022 and the value entered here is 3. You can thus plan/budget as far back as 2019 inclusive.
Future timeframe allowed
Value which specifies how far into the future you can plan/budget for. The start year is the reference point.
Examples
The start year is 2022 and the value entered here is 3. You can thus plan/budget for the years up to and including
2025

5. Availability control against overall value

Indicator which controls whether availability checks are conducted against the overall value or against annual ones.
Use
If the indicator is set, availability control conducts checks against the overall budget
For example- if your budget for particular year is 10000 and over all value for all the years is 50000, if the check box
of overall value is set the system will not only consider budget for that particular year but against overall value of all
the years
In the path controllinginternal ordersbudgeting and availability control-define availability control

Here We can define the usage of budget and according to that usage system will check and issue the
error or warning or warning with mail as per our setting defined here

If you want to exempt any cost element from budget availability control you can go here and exempt
from here

After you create budget profile, AND create original budget in k022 and assign in the order type in KOT2_OPA , in
the order Ko02 the the system status will show as availability control and `budgeted
After doing all the setting when you try to post a document using that order, system will throw a
error msg as budget exceeded because I maintained budget of 9000 in 2022 but I posted the
document for 10000
 6. IN KO22 you can go and increase the budget at any time. Here I have supplement by budget to 1000 hence
the earlier 9000 budget increased to 10000,

Now after posting the document of 10000. system is showing in k022 the initial budget was 9000 then I
supplemented to 1000 hence it increased to 10000 and assigned value is nothing but the how much total budget is
used of available budget
 7. here system is showing only rel and budg but not availability control because we created a
internal order and created a budget and posted few transactions without maintaining a
availability control ,
for such situations we can go n maintain the availability control again IN TCODE KO31

You can go and activate availability control again in KO31

Now when you go check in that same order in KO02 the availability control will be activated
 8. You can create planned profile in tcode OkOS, then assign it in kot2 tcode for order type

You can maintain plan in ko12 and then when you display in ko22 in will be updated here as planned
profile
 9. Model orders contain default values for the orders in an order type. The
Model order is assigned as the reference order in the order type. When you
create a new order, all the fields active in the relevant order type are copied
from the model order to the new order.while creating order type you need give
give category as 03 IN TCODE KOT2

10. Settlement is the process where the actual costs incurred for a Internal order, WBS
element, network, or activity are allocated, in whole or in part, to one or more
receivers.

FOR Settlement first we need to maintain secondary cost element in ka06 by selecting the
category 21
PATH Controllinginternal orderactual postingssettlementmaintain allocation structure

The secondary settlement profile you created in ka06 you need to assign here

You can trace the capital spending required for an asset you are constructing yourself as costs in a capital
spending order. These costs are settled by cost element to a balance sheet account at the end of the year
or after the order has been closed,

If you maintain by cost element you can trace the costs but if you maintain settlement cost element it is
going to combine all the costs
Create a settlement profile and assign the allocation structure and valid receivers

Then assign the settlement profile in order type TCODE KOAL

Now in f-02 post the transaction for the particular cost elements by selecting that order type

Do same the other element which you assigned it has settlement by cost element in allocation
structure

Then maintain a settlement rule in Ko02 and allocate the percentage here to which cost centres you
want to transfer those actual costs
GO to KO88 and run the settlement, you can see that internal order is settled against the 2 cost centres
and it combined the amount and of all cost elements n posted to these cost centres
Ko88 cant be run in production generally they run ko8z and create variant and run settlement for
multiple orders

These are the send cost elements

Here the receivers cost centres it is showing the cost element separately because we asked the system
to track this cost element separately in the allocation structure
You can reverse the settlement profile in Ko8G itself

Settling costs from internal order to cost centre is called internal settlement, external settlement
is generally used in WBS
You can maintain budget for statistical order as well in ko22 and see the status in ko02,

Hence you finally settle the statistical order to the cost centre only you can still allocate the budget
to the statistical order