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Int Order

WBS-elements in SAP's Project System module allow for hierarchical project management and detailed task structuring, while internal orders in the Controlling module serve as one-dimensional cost collectors for tracking expenses. Internal orders facilitate budget control for both CAPEX and OPEX by enabling cost collection, budget planning, and detailed reporting. For projects requiring comprehensive management and resource planning, WBS-elements are recommended, whereas internal orders are suitable for simpler cost tracking needs.

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2 views3 pages

Int Order

WBS-elements in SAP's Project System module allow for hierarchical project management and detailed task structuring, while internal orders in the Controlling module serve as one-dimensional cost collectors for tracking expenses. Internal orders facilitate budget control for both CAPEX and OPEX by enabling cost collection, budget planning, and detailed reporting. For projects requiring comprehensive management and resource planning, WBS-elements are recommended, whereas internal orders are suitable for simpler cost tracking needs.

Uploaded by

biswajit6864
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Without knowing the business scenario you have in mind ....

From a financial perspective both WBS-elements and internal orders are just cost collectors (in SAP
terms: cost object). When the collection is complete, costs are settled to one or more destinations,
e.g. fixed asset, P&L account or another cost object.

WBS-elements are part of SAP's Project System module. Internal orders are part of the Controlling or
CO module of SAP. When you work with WBS-elements, you have available all kinds of functionality
that has to do with project management like structuring a project, planning, assigning project leads
etc. With internal orders you don't have all these kind of things ... it is just collecting costs and in the
end settle those costs. Pls have look at the info available in the SAP help documentation.

If your primary focus is on collecting (and reporting) on costs and you don't have to deal with the real
project management stuff ... stay with internal orders.

When it is about real projects ... think about the PS module.

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Only projects(WBS Elements) enables to create a hierarchical structure for the objects that collects
costs.

Orders are always one – dimensional. Its not possible to distribute budgets for several orders in a
structured form from top to bottom.

Projects also offers the advantage of their integration with networks & the functions of logistics. With
orders, its not possible to carry out capacity & resource planning.

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What is the difference between WBS and internal order in SAP?

What's the Difference between an SAP Internal Order and Project

WBS follows a hierarchical structure, breaking the project scope into smaller, manageable
components. It provides a clear overview of project deliverables and dates, including detailed tasks,
subtasks, and their relationships. - Internal Order: Provides a single charge code allowing cost
tracking and monitoring.

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Yes, budget control for both CAPEX (Capital Expenditures) and OPEX (Operational Expenditures) can
be achieved through Internal Orders in many ERP systems like SAP. Internal orders act as temporary
cost collectors, allowing for planned expenditure tracking and monitoring against a budget. They can
be used for various purposes, including tracking expenses for construction projects (CAPEX) and
operational activities (OPEX).

How Internal Orders Facilitate Budget Control:

Cost Collection:

Internal orders serve as temporary repositories for expenses incurred during a specific project or
activity.

Budget Planning:

Budgets can be created and assigned to internal orders, allowing for proactive monitoring of planned
vs. actual spending.

Availability Control:

Systems like SAP offer availability control features, enabling you to set limits on how much of the
budget can be committed.

Reporting:

Internal orders provide a granular level of detail for tracking expenses and reporting on budget
performance.

Settlement:

Once a project or activity is completed, the costs can be settled to their final destinations (e.g., cost
center for OPEX, fixed asset for CAPEX).

CAPEX and OPEX Management in Internal Orders:

CAPEX:

Internal orders can be used to track expenses for capital projects like building construction, asset
purchases, or renovations. The costs are ultimately settled to fixed assets.

OPEX:

Internal orders can be used for tracking operational expenses like employee salaries, rent, utilities, or
maintenance. The costs are settled to cost centers.

Benefits of Using Internal Orders for Budget Control:

Granular Control:

Internal orders provide a more granular level of control over expenses compared to simply tracking
them at a high level.

Improved Reporting:

Internal orders facilitate more detailed and accurate reporting on budget performance.

Enhanced Planning:

Budget planning becomes more precise when you can track expenses at the internal order level.
Cost Visibility:

Internal orders offer greater visibility into project costs and overall budget performance.

In essence, internal orders are a valuable tool for managing both CAPEX and OPEX budgets by
providing a centralized, configurable, and reportable system for tracking expenses and monitoring
performance against planned budgets.

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