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What is internal order?

Updated: 12/17/2022
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14y ago

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An internal order is used to accumulate cost for a specific project or task for a specific time period. An internal order is therefore used for a short period with a specific deadline. Your internal order will usually settle to cost centers (and not visa versa) according to the settlement rule in the order setup. An internal order can therefore be used to group all the expenses incurred to plan and hold a conference over a 3 month period. The order can be settled on a monthly basis to cost centers. When the conference is finished the order can be settled finally. The cost of the conference will then be spread over 2 or more cost centers, but can be viewed in total on the internal order when needed. Internal Orders - It is an instrument used to monitor costs and, in some instances, the revenues of an organization. Uses of Internal orders

- Monitoring the costs of short-term jobs

- Monitoring the costs and revenues of a specific service

- On going cost control Internal order categories

- Overhead Orders

- Investment Orders

- Accrual Orders

- Orders with revenue

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