1. Controlling Internal Orders

2. 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
Controlling Internal Orders

3. 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

4. SAP Financial and Purchasing Components
Manages vendor invoices
Manages responsibility accounting
The “Top” book of financial records
Manages customer billing
Manages fixed assets and depreciation
Accounts
Receivable FI
Controlling
Payable
Asset
Accounting CO
General
Ledger
Manages purchasing/inventory management
Materials
Management MM
Controlling Internal Orders

5. What Goes Where HR/Materials Other Financial Modules
Management Modules
Other Financial Modules
FI Module
ACCOUNTS
RECEIVABLE
PAYABLE
ASSETS
FUNDS MANAGEMENT
PAYROLL
PURCHASING
CONTROLLING
GRANTS
MANAGEMENT
INVENTORY
MANAGEMENT
Controlling Internal Orders

6. Key CO Internal Order Terminology (Internal Orders):
Real
Statistical
Internal Order Group
Settlement
Closing
Controlling Internal Orders

7. Controlling Internal Orders
Debits
Credits
Order Balance
Internal Order
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.
Controlling Internal Orders

8. 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;
Controlling Internal Orders

9. 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
Controlling Internal Orders

10. Controlling Internal Orders
Debits
Credits
Order Balance
Real Internal Order
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
Controlling Internal Orders

11. More On Internal Orders
Debits
Credits
Order Balance
Internal Order Type
(Code):
Order Number Range:
Real/Statistical Order:
Public Health Services Internal Orders (ZPHS) –
Statistical
CDBG Internal Orders
(ZCDB) –
ROW Internal Orders –
AUC for Software Development
(ZASW) –
Real
AUC for Buildings
(ZABD) –
AUC for Infrastructure
(ZAIN) –
Controlling Internal Orders

12. Controlling Internal Orders
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.
Controlling Internal Orders

13. 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)
Controlling Internal Orders

14. Internal Order Group (continued)
Examples:
= internal order group;
= internal order;
Controlling Internal Orders

15. Controlling Internal Orders
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.
Controlling Internal Orders

16. Controlling Internal Orders
Closing
(real orders only)
Debits
Credits
Order Balance
Use to lock an internal order from any further changes/updates.
Occurs after full settlement
Controlling Internal Orders

17. Internal Orders/Groups Business Process
1. Create Internal
Order
6. Close
Internal
Order
(real orders only)
2.Create Internal Order Group
3. Assign Internal Order To Group
5. Settle Internal
Order
(real orders only)
4. Create Budget for Internal Order
(if it has budget)
Controlling Internal Orders

18. Process Triggers and Outputs (internal orders/groups)
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.
Create an internal order group [KOH1]
Business need for collective reporting/processing of internal orders.
A new internal order group.
Assign an internal order to a group [KOH2]
Business need for internal order to be included in an internal order group.
An internal order included in an internal order group.
Controlling Internal Orders

19. Process Triggers and Outputs (internal orders/groups)
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.
Full settlement of an internal order [KO88]
A completed AUC project.
A fully settled internal order.
Close an internal order [KO02]
An internal order for AUC project that has been settled.
A closed internal order.
Controlling Internal Orders

20. 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.
Controlling Internal Orders

21. 1. Creating Internal Order (continued)
Debits
Credits
Order Balance
A. Manual Method (KO01)
Controlling Internal Orders

22. 1. Creating Internal Orders (continued)
Debits
Credits
Order Balance
B. Order Manager Tool (KO04)
Controlling Internal Orders

23. 1. Creating Internal Orders (continued)
Debits
Credits
Order Balance
REAL Orders:
Note that the “Statistical order” checkbox is not selected
for a real order.
Controlling Internal Orders

24. 1. Creating Internal Orders (continued)
Debits
Credits
Order Balance
REAL Orders:
Creating an “asset under construction” (AUC) for a real order.
Controlling Internal Orders

25. 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.
Controlling Internal Orders

26. 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.
Controlling Internal Orders

27. 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.
Controlling Internal Orders

28. 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.
Controlling Internal Orders

29. 1B. Creating Internal Orders (continued)
Debits
Credits
Order Balance
STATISTICAL Orders:
Note that the “Statistical order” checkbox is selected.
Controlling Internal Orders

30. 2. Creating An Internal Order Group
Create Order Group (KOH1)
Controlling Internal Orders

31. 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)
Controlling Internal Orders

32. 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.
Controlling Internal Orders

33. 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.
Controlling Internal Orders

34. Key CO Budgeting Terminology (Internal Orders):
New Law Center
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
Key CO Budgeting Terminology (Internal Orders):
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
Controlling Internal Orders

35. 4. Create Budget for Internal Order
New Law Center
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
4. Create Budget for Internal Order
(if applicable)
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.
Controlling Internal Orders

36. 4A. Create Budget for Internal Order [ASSETS UNDER CONSTRUCTION]
New Law Center
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
4A. Create Budget for Internal Order
[ASSETS UNDER CONSTRUCTION]
Change Original Budget (KO22)
Note: Both overall and annual budget amount(s) are entered.
Controlling Internal Orders

37. 4B. Create Budget for Internal Order [NON-ASSETS UNDER CONSTRUCTION]
New Law Center
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
4B. Create Budget for Internal Order
[NON-ASSETS UNDER CONSTRUCTION]
Change Original Budget (KO22)
Note: Only an overall budget amount is entered.
Controlling Internal Orders

38. 4C. Other Budget-Related
Transaction Codes
Budget:
New Law Center
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
Display Original Budget (KO23)
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]
Controlling Internal Orders

39. Controlling Internal Orders
Settling An Order
(real orders only)
Budget:
New Law Center
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,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.
Controlling Internal Orders

40. 5A. Automatic Settlement of An Order [done monthly]
Debits
Credits
Order Balance
5A. Automatic Settlement of An Order [done monthly]
Settle Costs From Order (KO88)
Notes: Remove “Test Run” indicator and reexecute after successful test run.
Controlling Internal Orders

41. 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.
Controlling Internal Orders

42. 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.
Controlling Internal Orders

43. Controlling Internal Orders
Closing An Order
(Real Orders Only)
Debits
Credits
Order Balance
Close Internal Order (KO02)
- used to close an internal order.
Controlling Internal Orders

44. 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_ )
Display Cost Centers Commitment Line Items (KSB2)
Controlling Internal Orders

45. 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.
Controlling Internal Orders

46. Internal Order Reports
(continued)
Display Actual Costs (KSB5)
- used to view document for selected line item.
- used to view details for selected cost element.
Controlling Internal Orders

47. Internal Order Reports
(continued)
Display Budget Document (KO2B)
- used to view any long text for the budget document.
Controlling Internal Orders

48. Internal Order Reports
(continued)
Display Budget/Actual/Commitments (S_ALR_ )
Controlling Internal Orders

49. 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.
Controlling Internal Orders

50. Internal Order Integration With
Funds Management (set up in Funds Mgmt)
Controlling
(Managerial Reporting)
Funds Management
(Budget Control)
Funds center #1
Fund ABC
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
Cost Objects
Funds center #1
Fund ABC
Commitment Actual Budget
Salaries $60,000 $70,000
Operating , ,000
Total , ,000
Internal Order #6
Budget control is at the combination of the fund/funds center/ commitment item/functional area
Internal Order #7
Cost element Actual Plan
Wages $10,000 $11,000
Overtime , ,000
Travel , ,000
Utilities , ,000
Total , ,000
Funds center #2
Fund DEF
Commitment Actual Budget
Salaries $40,000 $50,000
Operating , ,000
Total , ,000
Note: There is a one to one relationship of cost objects to funds centers
Controlling Internal Orders

51. Authorized Transactions
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)
Controlling Internal Orders

52. Authorized Transactions
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)
Controlling Internal Orders

53. 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

54. 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:
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.
Controlling Internal Orders

55. 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

56. Controlling Internal Orders
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!!
Controlling Internal Orders

57. Controlling Internal Orders
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.
Controlling Internal Orders

58. Controlling Internal Orders
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.
Controlling Internal Orders

59. Controlling Internal Orders
Tarrant County Help
Problems with running tutorials?
Training Mailbox –
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
Controlling Internal Orders