Controlling Internal Orders
Controlling Internal Orders
1
Course Overview Objectives

Provide an overview of the CO module

Identify CO internal order/budget terminology and concepts

Understand the internal order/budgeting process

List the triggers for internal order/budget maintenance

Describe the various tools for processing internal orders/budgets

List and describe internal order/budgeting reports

Illustrate the integration between the CO and Funds Management modules

List the CO internal order roles and their authorized transaction codes
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Overview of Controlling (CO)
Definition
Controlling (CO) represents the County’s flow of cost and
revenue. It is also a management instrument for organizational
decisions.
Controlling facilitates coordination, monitoring and optimization
of all processes in an organization.
Controlling (CO) and Financial Accounting (FI) are independent
components in the SAP R/3 system. However, the two
components are tightly integrated and the data flow between
the two components takes place on a regular basis.
Controlling Internal Orders
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SAP Financial and Purchasing Components
FI
General
Ledger
The “Top” book of financial
records
FI
Accounts
Payable
Manages vendor invoices
FI
Accounts
Receivable
Manages customer billing
FI
Asset
Accounting
Manages fixed assets and
depreciation
CO
Controlling
MM
Materials
Management
Manages responsibility
accounting
Manages purchasing/inventory
management
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What Goes Where
HR/Materials
Management
Modules
PAYROLL
PURCHASING
INVENTORY
MANAGEMENT
FI Module
ASSETS
ACCOUNT
S
PAYABLE
ACCOUNTS
RECEIVABL
E
Controlling Internal Orders
Other
Financial
Modules
FUNDS
MANAGEMENT
CONTROLLING
GRANTS
MANAGEMENT
5
Key CO Internal Order
Terminology (Internal Orders):
 Internal Order
 Real
 Statistical
 Internal Order Group
 Settlement
 Closing
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Internal Order
Debits
Credits
Order Balance
 Used to plan, collect, and settle the costs of
internal jobs, tasks, or projects.
 Examples:
 New Law Center
 Precinct One Benbrook Project
 WIC Site 01 Bedford
 etc.
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
Internal Order
(continued)
Debits
Credits
Order Balance
As internal orders are created, the following attributes are defined:
 Order Type (ex: AUC* for Buildings, Public Health Services, etc.)
 Short Text (up to 40 characters)
 Company Code (will always be “TC01”)
 Business Area (typically “1000” for Tarrant County)
 Plant
 Functional Area (ex: Health Care, Roads & Bridges, etc.)
 Object Class (ex: Investment, Overhead, etc.)
 Responsible Cost Center
* AUC = Asset Under Construction;
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Statistical Internal Order
(informational purposes
only)
Debits
Credits
Order Balance
 Used to evaluate costs that are to be separated
from other costs in cost element or cost center
accounting.
 Statistical orders are not settled.
 Overhead cannot be applied to a statistical order.
 Example:
A statistical order for each fleet vehicle
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Real Internal Order
Debits
Credits
Order Balance
 Used for assets under construction (ex: buildings).
 Costs charged to real orders are settled to assets
under construction (AUC’s).
 Overhead can be applied to a real order.
 Examples:
New law center
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More On Internal
Orders
Internal Order Type
(Code):
Order Number Range:
Real/Statistical Order:
Public Health Services
Internal Orders (ZPHS)
400000 – 499999
Statistical
CDBG Internal Orders
(ZCDB)
500000 – 599999
Statistical
ROW Internal Orders
600000 – 699999
Statistical
AUC for Software
Development
(ZASW)
910000 – 919999
Real
AUC for Buildings
(ZABD)
920000 – 929999
Real
AUC for Infrastructure
(ZAIN)
930000 – 939999
Real
Controlling Internal Orders
Debits
Credits
Order Balance
11
Internal Order Group
 A hierarchical group of internal orders.
 Examples:
 ROW State/ROW County
 CDBG Projects
 AUC Law Building
 etc.

After a internal order group is create, internal
orders are assigned to that group.
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Internal Order Group
(continued)
 As internal order groups are created, the following
attributes are defined:
 Internal Order Group Name (10 characters)
 Description (up to 40 characters)
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Internal Order Group
(continued)
Examples:
= internal order group;
= internal order;
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Settlement
(real orders only)
Debits
Credits
Order Balance
TWO TYPES:
Automatic Settlement – carried out on
a monthly basis as part of month end
closing process.
Full Settlement – carried out when a
internal order (project) is completed.
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Closing
(real orders only)
Debits
Credits
Order Balance
 Use to lock an internal order
from any further changes/updates.
 Occurs after full settlement
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Internal Orders/Groups
Business Process
1. Create
Internal
Order
6. Close
Internal
Order
(real orders only)
5. Settle
Internal
Order
(real orders only)
2.Create
Internal Order
Group
4. Create Budget
for Internal
Order
(if it has budget)
Controlling Internal Orders
3. Assign
Internal Order
To Group
17
Process Triggers and Outputs
(internal orders/groups)
Process:
Trigger:
Output:
Create an internal
order
(real) [KO04]
Need to track, budget,
collect, and settle the costs
for an AUC project .
A new internal order for
AUC projects.
Create an internal
order (statistical)
[KO04]
Need to track, budget, and
collect costs for a non-AUC
project.
A new internal order for
non-AUC projects.
Business need for collective
reporting/processing of
internal orders.
A new internal order
group.
Business need for internal
order to be included in an
internal order group.
An internal order
included in an internal
order group.
Create an internal order
group [KOH1]
Assign an internal
order to a group
[KOH2]
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Process Triggers and Outputs
(internal orders/groups)
Process:
Trigger:
Output:
Create an
internal order
budget [KO22]
An internal order
which has budget.
An internal order
budget.
Automatic
settlement of an
internal order
[KO88]
Month end
processing.
An internal order
which is settled
for the month.
A completed AUC
project.
A fully settled
internal order.
An internal order for
AUC project that
has been settled.
A closed internal
order.
Full settlement of
an internal order
[KO88]
Close an internal
order [KO02]
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1. Creating Internal
Orders
Debits
Credits
Order Balance
OPTIONS:
A. Manual Method (KO01)
B. Order Manager Tool* (KO04)
*The order manager tool allows you to see
the existing internal orders as you are
creating new orders.
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1. Creating Internal Order
(continued)
Debits
Credits
Order Balance
A. Manual Method (KO01)
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1. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
B. Order Manager Tool (KO04)
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1. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
 REAL Orders:
Note that the “Statistical order” checkbox is not selected
for a real order.
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1. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
 REAL Orders:
Creating an “asset under construction” (AUC) for a real order.
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1. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
 REAL Orders – Creating AUC:
Note: Additional description, serial number, and “capitalized on”
date can be added on the General tab.
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1. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
 REAL Orders – Creating AUC:
Note: Same cost center entered earlier will be entered in the “Resp.
Cost center” field on the Time-dependent tab.
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1. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
 REAL Orders – Creating AUC:
Note:
If needed, the depreciation fields can be overwritten on the Deprec area tab.
Next, you would use the
button to return to the Order Manager screen.
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1. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
 REAL Orders – Creating AUC:
Note: After completing the setup of the AUC, you would choose the
button to save the real order.
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1B. Creating Internal
Orders (continued)
Debits
Credits
Order Balance
 STATISTICAL Orders:
Note that the “Statistical order” checkbox is selected.
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2. Creating An Internal Order Group
 Create Order Group (KOH1)
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3. Assign Internal Order
to Group
OPTIONS:
A. Assignment during creation of order
group (KOH1)
B. Assignment after an order group has
been created (KOH2)
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3. Assign Internal Order to Group
(continued)
A. During creation of order group (KOH1):
= used to assign/add an internal order to the group.
= used to search for the desired internal order number.
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3. Assign Internal Order to Group
(continued)
B. After an order group has been created (KOH2):
= used to search for the desired internal order number to be assigned.
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Key CO Budgeting Terminology
(Internal Orders):
Budget:
New Law Center
Commitment Actual
Salaries
Operating
Total
Budget
$60,000 $70,000
15,000 25,000
75,000 95,000

Current Budget – current value of budget including any additions
(supplements) and subtractions (returns) [see formula below].

Original Budget – original value of budget for project.

Budget Supplement – additions to original value of budget.

Budget Return – subtractions from original value of budget.
CURRENT BUDGET = ORIGINAL BUDGET + SUPPLEMENTS RETURNS
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4. Create Budget for Internal Order
(if applicable)
Budget:
New Law Center
Commitment Actual
Salaries
Operating
Total
Budget
$60,000 $70,000
15,000 25,000
75,000 95,000
TWO TYPES OF BUDGET SETUP:
 Assets Under Construction – Enter an
overall budget amount and yearly budget
amounts.
 Non-Assets Under Construction – Enter
just an overall amount.
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4A. Create Budget for Internal Order
[ASSETS UNDER CONSTRUCTION]
Change Original Budget (KO22)
Note:
Budget:
New Law Center
Commitment Actual
Salaries
Operating
Total
Budget
$60,000 $70,000
15,000 25,000
75,000 95,000
Both overall and annual budget amount(s) are entered.
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4B. Create Budget for Internal Order
[NON-ASSETS UNDER CONSTRUCTION]
Change Original Budget (KO22)
Note:
Budget:
New Law Center
Commitment Actual
Salaries
Operating
Total
Budget
$60,000 $70,000
15,000 25,000
75,000 95,000
Only an overall budget amount is entered.
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4C. Other Budget-Related
Transaction Codes

Display Original Budget (KO23)
Budget:
New Law Center
Commitment Actual
Salaries
Operating
Total
Budget
$60,000 $70,000
15,000 25,000
75,000 95,000
 Change Budget Supplement (KO24)
 Display Budget Supplement (KO25)
 Change Budget Return (KO26)
 Display Budget Return (KO27)
 Change Budgeting Document (KO2A) [to edit text for budget docs]
 Display Budgeting Document (KO2B) [to view text for budget docs]
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5.Settling An Order
(real orders only)
Budget:
New Law Center
Commitment Actual
Salaries
Operating
Total
Budget
$60,000 $70,000
15,000 25,000
75,000 95,000
TWO TYPES OF SETTLEMENT:
 Automatic Settlement – carried out
on a monthly basis as part of month
end closing process.
 Full Settlement – carried out when
a internal order (project) is completed.
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5A. Automatic Settlement of
An Order [done monthly]
Debits
Credits
Order Balance
Settle Costs From Order (KO88)
Notes: Remove “Test Run” indicator and reexecute after successful test run.
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5B. Full Settlement of An Order
[done after project is complete]
Debits
Credits
Order Balance
Settle Costs From Order (KO88)
Note: Remove “Test Run” indicator and reexecute after successful test run.
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5C. Collective Settlement of
Orders
Debits
Credits
Order Balance
Collective Settlement of Costs From Orders (KO8G)
Note: With collective settlement, a variant (ex: INTORDERS)
can be used to select/settle multiple orders.
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6. Closing An Order
(Real Orders Only)
Debits
Credits
Order Balance
Close Internal Order (KO02)
- used to close an internal order.
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Internal Order Reports
 Display Actual Line Items for Internal Orders (KOB1)
 Display Commitment Line Items for Internal Orders (KOB2)
 Display Budget Line Items for Internal Orders (KOB4)
 Display Actual Costs (KSB5)
 Display Budget Document (KO2B)
 Display Budget/Actual/Commitments (S_ALR_87013019)
 Display Cost Centers Commitment Line Items (KSB2)
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Internal Order Reports
(continued)
Display Actual Line Items for Internal Orders (KOB1)
- used to view document for selected line item.
- used to view details for selected cost element.
Note: The other “Display Line Item” reports (KOB2, KOB3) look identical to the above report.
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Internal Order Reports
(continued)
Display Actual Costs (KSB5)
- used to view document for selected line item.
- used to view details for selected cost element.
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Internal Order Reports
(continued)
Display Budget Document (KO2B)
- used to view any long text for the budget document.
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Internal Order Reports
(continued)
Display Budget/Actual/Commitments (S_ALR_87013019)
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Internal Order Reports
(continued)
Display Cost Centers Commitment Line Items (KSB2)
- used to view document for selected line item.
- used to view details for selected cost element.
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Internal Order Integration With
Funds Management (set up in Funds Mgmt)
Controlling
(Managerial Reporting)
Funds Management
(Budget Control)
Fundscenter
center#1
#1
Funds
FundABC
ABC
Fund
Commitment Actual Budget
Commitment Actual Budget
Salaries
$60,000 $70,000
Salaries
$60,000 $70,000
Operating
15,000 25,000
Operating
15,000 25,000
Internal Order #6
Total
Total
75,000 95,000
75,000 95,000
Internal Order #7
Cost element
Wages
Overtime
Travel
Utilities
Total
Actual
Plan
Funds center #2
Fund DEF
$10,000 $11,000
3,000 4,000
6,000 6,000
4,000 3,000
Commitment Actual
23,000 24,000
Salaries
Operating
Total
Budget
Budget control
is at the
combination of
the fund/funds
center/
commitment
item/functional
area
$40,000 $50,000
15,000 35,000
55,000 85,000
Note: There is a one to one relationship of cost objects to funds centers
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CO Roles/
Authorized Transactions
“CO – Internal Orders” Role  Create Internal Order (KO01)
 Change Internal Order (KO02)
 Order Manager (KO04)
 Collective Proc. Of Internal Orders (KOK2)
 Automatic Collective Proc. Of Internal Orders (KOK4)
 Create Internal Order Group (KOH1)
 Change Internal Order Group (KOH2)
 Change Original Budget (KO22)
 Change Budget Supplement (KO24)
 Change Budget Return (KO26)
 Change Budgeting Document (KO2A)
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CO Roles/
Authorized Transactions
(continued)
“CO – Display” Role –
 Display Internal Order (KO03)
 Collective Display of Internal Orders (KOK3)
 Master Data List for Internal Orders (KOK5)
 Collective Printing of Internal Orders (KOK6)
 Display Internal Order Group (KOH3)
 Display Original Budget (KO23)
 Display Budget Supplement (KO25)
 Display Budget Return (KO27)
 Display Budgeting Document (KO2B)
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Course Overview Summary
(continued)
You are now able to:

Provide an overview of the CO module

Identify CO internal order/budget terminology and concepts

Understand the internal order/budgeting process

List the triggers for internal order/budget maintenance

Describe the various tools for processing internal orders/budgets

List and describe internal order/budgeting reports

Illustrate the integration between the CO and Funds Management modules

List the CO internal order roles and their authorized transaction codes
Controlling Internal Orders
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Accessing Training Materials



All TITAN training materials for Phase II are stored on the Tarrant County
website
This website is accessed through your Internet Explorer from any computer
that has internet access; you do not have to be on the Tarrant County
network. The URL for direct link to the Training Materials website is:
http://www.tarrantcounty.com/titan/lib/titan/training/index.asp
Set up this website as a favorite in your web browser for quick future access
 Enter the URL above in the address
field in your browser
 When you reach the website, go to
Favorites > Add to Favorites in the
Browser menu
 A pop-up window will be displayed with
a default name for the site. Click OK.
 To access this site in the future, just
click on the Favorites item in the menu
and highlight the name for the website.
You will go directly to the website.
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Accessing Training Materials
(cont’d)

Review the instruction page to see how to use the website

Click on the Courseware link at the top of the Instruction
page

A Listing of Courses will be displayed

Click on the Course Title to see a general description of the
content of the course
or

Click on one of the buttons beside the Course Title to go
directly to either the Overview, Quick Reference Cards, or
Tutorials

These training materials will be available for your use and
reference at any time Controlling Internal Orders
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Running Tutorials

An additional learning tool is being provided with the Phase II SAP
implementation -- Tutorials

Tutorials are simulations of the SAP system that take you through a
transaction step-by-step in a mock SAP environment.

These can be viewed in two ways:
► As a movie that takes you through the transaction in a demonstration, or
► As an interactive, hands-on practice session that stops on each screen
and directs you to make entries in fields or take actions per instructions
provided by the wizard and in the bubbles

Tutorials are provided with each course in the Finance and
Purchasing training

A list of the tutorials is provided at the end of each course.

Go to the Training Materials website to access and run these
tutorials. Detailed instructions are provided on the website
Happy Tutoring!!
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Training Sandbox
 An SAP environment (Training Sandbox) where you can practice
your skills in a real instance of SAP will be available after June 18
 The sandbox can be accessed through the standard logon process
discussed in Lesson 2 of the SAP Basic Navigation course
 The only differences are:
 Highlight the Training environment on the Logon pad
 Click logon
 Enter 520 in the Client field
 Enter the same User Id and Password you are assigned for
Production
Feel free to practice any of the tasks in the basic navigation course
and any of the transactions included in other courses you take.
Use the Quick Reference Cards to walk you through the
transactions.
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Getting Help
1
Review the on-line help in SAP
2
Review your training materials
and notes.
3
Ask your peers or super user for
assistance.
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Tarrant County Help
Problems with running tutorials?
 Training Mailbox –
[email protected]
After utilizing the various methods of help on
the previous page, if you still have questions or
problems
or
If you have problems at any time with accessing
SAP, printing, computer or network problems,
etc.
Contact the Tarrant County IT Help Desk at
817-884-3507
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CO – Internal Orders