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Cost Centers and Internal Orders: What’s the difference?

Cost Centers and Internal Orders both allow you to report on planned spending and compare it to actual revenue and expense postings for a specific department, program or project.  Reporting is available down to the general ledger level of detail.

Key differences between the two accounts are outlined below:

Cost Centers are typically used for tracking ongoing, fiscal year based activities, while Internal Orders are used for short term activity tracking or for long term non-fiscal year based activities.

It is very important that when posting transactions either a Cost Center OR Internal Order is used, but not both. The risk of posting to both is inaccurate and possible duplicate reporting.

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