SAP ERP Financials and FICO Handbook

6.9 IO 257
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In CO, you observed that you are following various methods
to transfer cost from one cost object to others. Some of these
transfers are within the CO, and some are within the company
code level. At the end of the month, it is essential to reconcile
data for internal accounting with data for external accounting.
The reconciliation ledger facilitates this reconciliation.
6.9 IO
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All indirect costs flow either to cost centers or to overhead IO.
IO holds cost and/or revenue for short periods. You can divide
IO into the following categories: (1) overhead order, (2) accrual
order, and (3) order with revenue.
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Overhead order captures indirect costs not directly attributable to
any product or services for a short period.
Accrual order accumulates certain costs that will be offset by
another entry at a particular interval.
Order with revenue is used to track costs and revenue for a
particular object.
IOs normally act as an interim cost collector and a tool for
planning, monitoring, and reporting transactions. Once the
objective of the IO is complete, the costs captured in IO have to
be settled to their cost center/IO or to a G/L.
IO is used in the SAP R/3 system for planning, monitoring,
controlling, and settling a particular project. You use different
types of IO as mentioned earlier to capture different types of
requirements.
You will create an IO with reference to order type. Order
type controls the number range of the IOs, types of orders,
settlement profile, and budget profile.
Depending upon master data attributes, the SAP R/3 system
posts transactional data either as real postings or as statistical
postings.