Internal orders are normally used to plan, collect, and settle the costs of internal events, jobs and

tasks. It is possible to monitor internal orders throughout their entire life-cycle from initial creation,
through the planning and posting of all the actual costs, to the final settlement. Further, it is also
possible to budget expenses on internal order and trigger different messages automatically through
system to recognize possible budget overruns. The functionality of internal order in Videocon will be
used mainly to analyze marketing department costs of advertisement campaign, dealers meet, cricket
sponsorships, etc. In addition, it is also proposed to be used for collecting and monitoring of costs on
projects undertaken by the Plant and maintenance department. Projects with revenue also can be
handled through internal orders. Accrual orders can be used for accruing and posting non-regular
costs such as provision for bonus, gratuity etc.,

1. Internal order shall display cost element wise details. Various GL Accounts/Cost Elements will
be created to capture various expense heads that are specifically relevant to analyse
marketing costs.
2. System to give error message if the actual amount exceeds the budgeted amount for an
internal order.
3. Internal orders for dealers meet exhibitions or other business promotion events to be opened
at the state level by HO where the budget control should be in place. If the costs are
controlled at the corporate office level, the internal orders will be created at the head office
and the costs will be distributed later to the relevant branches.
4. In case of advertisement campaigns or dealers meet, cost of common events will have to be
ultimately allocated to various products across company codes at period end
5. Costs of display vans are to be captured in the system for detailed analysis. Statistical
Internal orders will be created for each display van.
6. Variance analysis of plan and actual cost of particular internal order,
7.
Internal orders for the projects will be settled to GL accounts from where it
will be billed to external parties (in the case of project for others) or
capitalised under assets.

Internal orders with revenue will be created for Plant Maintenance Projects
1. To create event, campaign wise, project wise internal orders with the pre-defined order type.
2. Planning of cost element wise expenses on internal order.
3. Define overall budget and annual budget against individual internal orders. Budget can be
defined on yearly basis also, if required.
4. To enter internal order while passing FI entry to capture the cost in the internal order
5. Settlement of True internal orders on monthly basis to product-specific marketing cost centres
or directly to profitability segments related to concerned products,
6. Internal order group can be created to get consolidated details for internal orders of similar
nature.
7. Separate GL Accounts to be defined to capture head wise advertisement and marketing
expenses.
8. User to enter the internal order (mandatory field if needed) while passing FI entry. The field
status group in GL Master Data can be maintained accordingly for advertisement specific GL
Accounts.
9. All internal orders to be settled every month as a part of period end closing, for this settlement
rule needs to be created in each order. Videocon to finalize the basis of allocation of cost to
various products / company codes for events, dealers meet other sales promotion schemes of
common nature.
10. Videocon to decide the nature of system message (error or warning) and fix threshold limits
for budgetary control.