What is the complete flow of the profit center accounting,and Internal orders in controlling

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Sarvottam Darshan

  • Feb 22nd, 2006
 

 Profit Centre Accounting:The following data can be passed on in Profit Center Accounting

  • Costs (assessment and/or distribution)
  • Revenue and sales deductions (assessment and/or distribution)
  • Balance sheet items (distribution)

For this purpose, it is necessary to define cycles containing rules for finding sender-receiver relationships.

Related Activities in Controlling

  • Definition of actual assessment cycles
  • Definition of plan assessment cycles
  • Definition of actual distribution cycles
  • Definition of plan distribution cycles

Internal Orders

Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving:

Features

  • You can use master data to assign certain characteristics to your internal orders, which enables you to control which business transactions can be used with the internal order.
  • Internal order planning enables you to roughly estimate the costs of a job before the order starts and to make an exact calculation at a later date. You can choose between various planning approaches to compare the effectiveness of different methods.
  • You can assign and manage budgets for internal orders.
  • You apply the actual costs incurred by a job to your internal orders using actual postings. In Financial Accounting, you can assign primary cost postings (such as the procurement of external activities and external deliveries) directly to internal orders.
  • In period-end closing you can use various different allocation methods (for example, overhead costing) to allocate costs between different areas of Cost Accounting.

Order settlement enables you to transfer the costs incurred by an order to the appropriate receivers.

  • The information system for internal orders enables you to track planned and assigned costs on your orders in each stage of the order life-cycle.
  • You can archive internal orders that you no longer require. See Archiving.

 

 

 

 

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