Business Blue Print Document

Internal Orders
BBP_02.02_Budget Annual Operating Plan
Document Control
Revision History
Date

Document
Version

23.09.2015

001

Document
Revision
Description
Initial Draft

MODULE ID

Author

Rajamallu

Reviewer

Venkateshwar
Reddy

MODULE NAME

01

Financial Accounting

02

Controlling

03

Materials Management

04

Sales and Distribution

05

Production and Planning

06

Quality Management

07

Plant Maintenance

08

Project Systems

09

EXIM

Table of Contents
General Requirement / Expectations...........................................................................3
Confidential

Page 1

Business Blue Print Document

Explanation of functions and events...........................................................................3
Process Flow Diagram.......................................................................................................4
TO-BE Process:....................................................................................................................4
Status Profile:.......................................................................................................................5
Internal Order Planning:..................................................................................................5
Internal Order Budgeting.................................................................................................5
Settlement of Internal Order:........................................................................................6
Business Benefits & Improvements.............................................................................7
Expected Reports:..............................................................................................................7
Inputs Event Triggers....................................................................................................8
Outputs...................................................................................................................................8
Process Linkages/Integration points...........................................................................8
Master Data Considerations............................................................................................8
Configuration Considerations.........................................................................................8
Description of functional deficits...................................................................................8
Approaches to covering functional deficits...............................................................8
Description of Business Process Changes.................................................................8
Description of Business Process improvements......................................................9
Authorization Requirement..............................................................................................9
WRICE List.............................................................................................................................9
Interfaces...............................................................................................................................9
Conversions...........................................................................................................................9
Enhancements....................................................................................................................10
Forms.....................................................................................................................................10
Workflow...............................................................................................................................10
Sign-off..................................................................................................................................11

Purpose
This BBP takes care of Internal Orders and budgeting and Master Data.

Confidential

Page 2

Business Blue Print Document

AS-IS Document Reference
07

CO-BPML-007

Synergy_As-Is_Budget Annual operating plan

Business Scenario
This document covers the process related to Internal orders Budget and
master data.

Business Process
This document covers the process related to creation of internal orders and
budget related Master Data requirements.

Process Steps
07.01.01
07.01.02
07.01.03
07.01.04
07.01.05
07.01.06
07.01.07
07.01.08
07.01.09
07.01.10

General Requirement / Expectations

Explanation of functions and events
Process Flow Diagram
TO-BE Process
Status Profile
Internal Order Planning
Internal Order Budgeting
Settlement of Internal Order
Business Benefits & Improvements
Expected Reports

General Requirement / Expectations

Internal orders are normally used to plan, collect, and settle the costs of specific
internal jobs and tasks The SAP system.
Enables monitoring of internal orders throughout their entire lifecycle, from initial
creation through the planning.
Posting of all the actual costs to the final settlement and archiving Internal Orders
can be either Statistical orders or Real Orders.

Explanation of functions and events

Statistical orders are used to collect costs to evaluate costs that cannot be
itemized in detail in cost element or cost center accounting.
When cost centers are real cost objects, the internal orders serve as a statistical
record, that means no further settlement from the statistical order It is achieved
by assigning the actual costs to a cost center and statistically to an internal order.
The costs will then appear under the original cost element both on the cost center
(real costs) and on the order (statistical, for information purposes only).
On posting a transaction in FI, the responsibility of the cost whether it pertains to
a Cost Center or to an Internal Order is to be fed.
If the respective Internal Order is a Statistical one, the real cost object is the Cost
Center. If the Internal Order fed is a Real one, such costs are to be settled against

Confidential

Page 3

Business Blue Print Document

cost objects like Cost centers, CO Profitability Analysis etc., through internal order
settlement rules.
As an example, a statistical order can create for each vehicle in the companys
staff car group. Costs for fuel, repairs, Insurance, and so on, can post to the
general cost center "Travel Wing", with an additional account assignment to the
relevant.
Statistical order of each car on the cost center, the total costs incurred can be seen
for all vehicles, while the individual orders show how high the costs were for each
vehicle.
Real Internal orders will be posted with values where the cost objects are not
known at the time of incurrence, On the period ends, these costs are settled to the
real cost objects such as Cost centers, Assets under construction etc.

Process Flow Diagram

TO-BE Process:
Internal Orders type:
Order purpose is defined in order type, The classification of internal orders is
reflected in each order type, the attributes of which define the way orders are
processed in the system, Order type includes following default values.
Object class:
Confidential

Page 4

Business Blue Print Document

The object class categorizes Controlling objects according to business function and
enables us to analyze cost flows within Controlling from different business
perspectives.
The following object classes are available:
Overhead
Production
Investment
Profitability analysis and sales.

Overhead Cost Orders:

The main purpose of this type of internal order is to collect the planned costs, and
the actual costs incurred for an operational job For example, an internal order can
be created to track the expenses incurred for PM trophy evaluation team visit.

Investment orders:
This type of orders helps to monitor investment costs that can be capitalized and
settled to fixed assets. For example, internal order can be created for asset under
construction like capital expenditure AUC, Internal Orders are dealt in Asset
module in FI. The creation of these orders is covered in Asset Accounting Module.

Status Profile:
Status profile is for control user status, In user status profile the sequence in which
user statuses can be activated, Initial status, Allow or prohibit certain business
transactions can be defined.

Internal Order Planning:

Planning is the expected amount of spending during the lifetime (if the IO is
created for short period less than a year) or for the financial year of the internal
order.
Two ways of planning are available in SAP, The first one is overall planning which
does not require any detailed information like cost elements etc. The overall
amount will be broken for yearwise, if Required When it is required to have a
detailed planning, the planning is carried out according to cost elements wise.
Based on planning, budgets can be prepared & assigned to internal orders, If the
expenditure is in the nature of capital and outflows are spread for more than a
year, Internal Orders can be created and expenditures can be split in more than
year basis, Monthly/quarterly break up of expenditure budgeted and actual can be
compared with actual postings.

Internal Order Budgeting

Planning is the amount requested for the purpose of the internal order and budget
is the approved amount against the planning.
When internal orders are budgeted by the management, it manages the internal
order spending It creates availability checks and alerts the user with budget over
runs.

Confidential

Page 5

Business Blue Print Document

Internal Order can have Budgeting Controls, to restrict the actual expenditure for
particular type of Expenses, assign the Budget and control the actuals.
This will help in proper control of various expenses and helps in Proper analysis,
Further appropriate messages can be set for the utilization of the budget like if
Budget is exhausted by 90%, warning message to the user regarding the same,
Revision of the budget also allowed based on Present requirement.
Internal orders facilitates to control the cost for the specific event by way of
budgeting, Budget Check in Internal Order is available at Order level only.
Transaction Code:
KO22 Change
KO23 Display
KO24 Change (Budget Supplement)
KO25 Display
Postings to Internal Order:
Postings to internal orders can be considered in two ways:
1. Real Postings
2. Statistical Postings
Real Postings:
When posted amounts are to be settled from internal order to another cost
objects, such postings are called real postings.
Statistical Postings:
When information collected in the order is in addition to the other cost object (say
cost center) and only for information purpose, For instance posting of
advertisement cost of senior manager positions to internal order in addition to the
cost center (advertisement) as a whole.
Whether an order is statistical or real is to be determined when order is created.
Budget check is possible for both real and statistical orders.
Settlement of Internal Order:
Settlement means transfer of the cost posted in the order to other cost object (say
cost center or fixed asset in case of AUC).
In case of statistical postings there cannot be settlement.
Settlements are two types 1. Internal settlement, 2. External Settlement
Internal settlement is nothing but settlement within controlling, Cost will be settled
with in controlling are from one cost object to another cost object.
For example internal order to cost center, internal order to WBS element, No
accounting entry will be passed.
External settlement is settling the cost to account assignment category fixed
assets (FXA), GL Accounts (G/L). Through external settlement original cost
element (for which cost booked) can be reversed or new cost element can be given
for settlement.
Transaction Code:
KO88 Individual Processing

Confidential

Page 6

Business Blue Print Document

KO8G Collective Processing
KOB5 Investment line item settlement

Business Benefits & Improvements

Internal orders rather than cost centers are best suitable for evaluation and cost
collection of internal jobs reduces the cost elements creation.
As budgetary controls are available for Internal orders, costs of one time jobs like
PM trophy team visits, Organization of special functions like Silver jubilee
celebrations, Foundation day celebrations can be monitored in a better way.
Statistical Information for specific cost or special events cost monitoring and Easy
capitalization of Capital expenditure.

Expected Reports:
Report Name

Description

S_ALR_87012993

Orders:
Actual/Plan/Variance
Orders: Current
Period/Cumulative
List: Orders
List: Orders by Cost
Element
List: Cost Elements by
Order
Orders: Breakdown by
Partner
Orders: Actual Yearly
Comparison
Orders: Quarterly
Comparison Actual
Orders: Period
Comparison Actual
Order: Planning Overview
Order: Plan Yearly
Comparison
Orders: Plan Quarterly
Comparison
Orders: Plan Period
Comparison

S_ALR_87012994
S_ALR_87012995
S_ALR_87012996
S_ALR_87012997
S_ALR_87012998
S_ALR_87013001
S_ALR_87013002
S_ALR_87013003
KABL
S_ALR_87013004
S_ALR_87013005
S_ALR_87013006

Standard /
Development
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard
Standard

Inputs Event Triggers

Specific to FDC, Any small type of the job or the task we need to create as a
internal order.
While posting in finance and MM module assign the cost center for tracking the
cost and budget.

Confidential

Page 7

Business Blue Print Document

Outputs
Internal order wise we can track the cost for specific job or task and can monitor
the cost and control the expenditure.
Internal order wise we can maintain the budget and if its exceeded the same
system gives warning message or error message to user.

Process Linkages/Integration points

Internal orders are integrated with other modules like MM, FI module because of
while creation of the PO need to give Internal order for monitoring the cost and
budget, Like same in FI module also.

Master Data Considerations

Internal Order Master

Cost Centers
Profit Centers

Configuration Considerations

Define Order Types

Maintain Number Ranges for Orders
Maintain Budget Profile
Define Tolerance Limits for Availability Control

Description of functional deficits

Gap Number (Business Process of
BPML)

Description

Approaches to covering functional deficits

Gap Number (Business Process of
BPML)

Work around solution

Description of Business Process Changes

During the transactions in FI and MM module need to select relevant internal order
for correct posting.

Description of Business Process improvements

User restriction is required for select the correct internal order for tracking the cost
and budget.

Confidential

Page 8

Business Blue Print Document

Authorization Requirement
Standard Reports
Transaction Code
KO01/KO02/KO03
KO22
KO24
KO26

Description
Internal Order Creation/Change/Display
Maintain Budget
Supplements
Returns

WRICE List
REPORTING
WRICEF Description
ID

Report
Type

Data
Elements
NA

Relevant
KPI
NA

Owner
NA

Interfaces
Interfaces
WRICEF
Description Interface
ID
Method
NA
NA
NA

Applications
NA

Data
Elements
NA

Frequency Owner
/ Volume
NA
NA

Conversions
CONVERSION
WRICEF Conversion
ID
Object

Source

Conversion
Activities

Conversio # of
n Method Objects to
be
converted

Ow
ner

NA

NA

NA

NA

NA

NA

NA

Enhancements
ENHANCEMENTS
WRICEF
Descriptio
ID
n

Data
Object

Functional
Gap

NA

NA

NA

NA

Alternativ
e SAP
Standard
NA

Reason

Owner

NA

NA

Forms

Confidential

Page 9

Business Blue Print Document

OUTPUT FORMS
WRICEF
Description Data
ID
Object

NA

NA

NA

Output
Type
(Form,
EDI, etc)
NA

Frequency Volume

Owner

NA

NA

NA

Workflow
WORKFLOW
WRICEF Description
ID
NA
NA

Data Object

Engaged Parties

Owner

NA

NA

NA

Sign-off
SIGN-OFF
Role
Domain Core Team Member-

Name

Date

Signature

Domain Core Team Member

Domain Core Team Member
Domain Core Team Member
IT Core Team Member
IT Core Team Member
IT Core Team Member
IT Core Team Member
IT Core Team Member
IT Core Team Member
IT Core Team Member
Project Management
Committee Member

Confidential

Page 10

Business Blue Print Document

SIGN-OFF
Project Management
Committee Member
Project Manager
Consultant YASH
Project Manager - YASH

Confidential

Page 11