Controlling (CO)
An instrument used to monitor costs and, in some instances, the revenues of an organization.
Internal orders can be used for the following purposes:
- Monitoring the costs of short-term jobs
- Monitoring the costs and revenues of a specific service
- Ongoing cost control
Internal orders are divided into the following categories:
- Overhead orders - For short-term monitoring of the indirect costs
arising from jobs. They can also be used for continuous monitoring of
subareas of indirect costs. Overhead orders can collect plan and actual
costs independently of organizational cost center structures and
business processes, enabling continous cost control in the enterprise.
- Investment orders - Monitor investment costs that can be capitalized and settled to fixed assets.
- Accrual orders - Monitor period-based accrual between expenses posted
in Financial Accounting and accrual costs in Controlling.
- Orders with revenues - Monitor the costs and revenues arising from
activities for partners outside the organization, or from activities not belonging to the core business of the organization.