Customization of Internal Order in Hana

 Customization of Internal Order in Hana

INTERNAL ORDERS

Internal orders are controlling objects used to represent internal projects, such as marketing campaigns, information technology implementation projects or research and development projects. They are fundamentally different than cost center, which usually represent departments within the organisation, where internal orders are created for specific projects with a specific duration.

Therefore internal orders are created with a limited time span. The cost center represent a more or less stable structure, whereas internal orders are created, budgeted for, accumulate costs, and at some point of time it is closed

Examples :

This is used to view for a specific task

Vehicle

Vehicle wise running expenses like (a) petrol expenses for the vehicle ( b ) repairing cost of the vehicle

 Management will take decision whether to keep or sell the vehicles depending upon the expenses on each vehicle

In FI we will not create GL account for each vehicle wise expenses on petrol or repairing

It will be recorded in the CO area through cost center accounting. Vehicle will be under administration cost center and the expenses related to petrol and repairing are administrative expenses will also be   posted in Administration Cost Center

Vehicle will be created as Internal Order

Telephone Expenses

In  FI we will have only one account for all Telephones

In Cost Center Accounting it will be posted in administration cost center. Here we will not get telephone wise expenses directly.

We will have to create Telephone as Internal Order and telephone wise expenses can be generated

Production Order Costs

Different production orders  requires/ consume different quantity of raw materials. Some less and some more.

In FI  we have GL account for Raw Material Consumption. It does not record order wise consumption

We create Production Order as Internal Order  to get order wise costs.

Exhibition Costs

Salesman Salary  - One Account

Conveyance – Different Account

Advertisement – Different Account

Discounts – Different Account

 We create Exhibition Cost  as Internal Order  to get exhibition wise costs.

Internal Order are of 2 types

1.Real Orders -  Here settlement is possible. We can settle order here

2.Statistical Orders – Settlement not possible. Statistical orders are used for decision making

 Cost  Center ( Internal Settlement ).  From CO to CO

G/L Accounts  and Asset   ( External Settlement )  From CO to FI

When we transfer from Cost center to Cost Center  allocation is done by assessment / distribution / periodic reposting / indirect activity allocation

Journal Entry – When we transfer from Internal Order Settlement

Telephone Expenses …… Dr  XXXX  (  Cost Center – Department and Internal Order Tel no. yyyyyyyy )

To Bank ………… Cr xxxx     ( The cost will be allocation to production orders from CO )

 

When we are creating orders there is a Statistical Order Check box

a)      If we select the  statistical order check box then the Internal Order is statistical ( Automatically cost center will be real )

b)      If we don’t select the statistical order check box then order is real ( Automatically  cost center will be statistical )

 

Master Data

The first step in setting up internal orders is to ensure that the order management is activated for controlling area

Controlling > Internal Orders > Activate Order Management in Controlling Area

Click on : Activate Components/ control indicators

SAVE

 

Creation of Order Types

Path : SPRO > Controlling > Internal Orders > Order Master Data > Define Order Types

T Code : KOT2_OPA

Select New Entries button

Order Category  :  Select 01   Internal Order ( Controlling )

Enter

Order Type : BILT

Description : Telephone Orders for BG20

Planning Profile : Select  000001 ( General budget / plant profile )

Object Class : Select Overhead Cost

Select :   Immediately check box

Save

We get message Number range not processed

Ignore the message press enter

Select  Assign/ Change Interval button  beside No. range interval

Double click on order type BILT

Select motor pool A-ZZZZZZZZZZZZZZZZZ ( External )

From the menu select More (Edit) > Group > Assign Element Group

Save

Ignore the message press enter

 

Creation of Internal Orders

Accounting > Controlling > Internal Orders > Master Data > Special Functions > Order – Create (KO01)

Order Type :  Select BILT

Enter

Order No. : BIL 23456789 ( Telephone Number )

Description :  Telephone Order no. 23456789

Company Code : BG20

Business Area : BG01

Select Control Data tab

Select Statistical Order Check box

Save

Create One more order

Order Type :  Select BILT

Enter

Order No. : BIL 44445555 ( Telephone Number )

Description :  Telephone Order no. 44445555

Company Code : BG20

Business Area : BG01

Select Control Data tab

Select Statistical Order Check box

Save

  

In the Control tab

 

In the General Data tab

In the Investment tab

It is relevant if you use investment management functionality

 

Creation of Internal Order Group

Accounting > Controlling > Internal Orders > Master Data > Order Group > Create

T Code : KOH1

Give the order group name : BILHYDTEL

Enter

Description  : Hyderbad Order Group  for BG20

Select Insert order button  - (Select menu bar > Edit > Order > Insert Order

Select to orders :  BIL23456789    and BIL44445555

SAVE

Creation of field status group by making cost center and internal order required entry fields (OBC4)

Select field status variant : BIL

Double click on field status group folder

Select field status group  G004 cost accounts

Select copy as button

Change the field status group to G002

Change the text to Cost Accounts ( CC & IO required )

Enter

Save

Enter to save in your request

Double click on G002

Double click on additional account assignment

CO/PP order make it required entry field

Save

Creation of GL master of Telephone Expenses (FS00)

Take field status group as  : G002

Take cost element category as   : 1

Testing : Posting of Transactions in FI

T code : F-02

Document date : Today’s date

Type : SA

Company Code : BG20

Posting Key : 40

Account No :  xxxxxx ( Telephone Expenses )

Enter

Give the amount  : xxxxx

Cost Center :  Dept A

Order : BIL23456789

Text : Telephone Expenses

Posting key : 50

Account No. : xxxxx ( Bank G/L A/c Number )

Enter

Amount :  *

Business Area : BGKL

Text : +

From the menu select – Document > Simulate > Save