Product Costing IO Budgeting

Product Costing IO Budgeting

Internal order is going to be used for budgeting, collection of cost. Internal order will be used for control of Capital Expenditure, Advertisement cost, R & D expenses, Exhibition Cost, Manufacturing meet, Project etc.

During planning stage planned cost is estimated and once the planned cost is approved, funds equivalent to approved planned cost is prescribed as budget.
In case of unforeseen events, additional budget requirement due to for example Price rise in external activities will be updated as Supplementary Budget and similarly in case of reduction, budget can be reduced by updating Return.

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SAP Internal Order Master Data

SAP Internal Order Master Data

SAP Internal Order Master Data

Internal Order is Collector of cost other than cost centre. Cost collected in internal order will be distributed to various cost center at period end or before the IO is closed. Internal Order will be used for budgeting, collection of cost.

Various types of Internal order can be created based on cost Object viz Overhead order, investment order etc. Internal order can be real order or statistical order. Real order captures cost which has to be subsequently settled to cost center or other cost object like another internal order or WBS.

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