An "Internal" change order is a change order (CO) created for tracking changes in a project’s Bill of Materials (BoM) when:
The CO need not be shared externally with the customer for approval because you are in agreement with the customer about the changes.
The customer does not require a CO proposal for internal record-keeping.
Create internal COs
To create an internal CO:
1/ Select “Internal” as the CO type. After you create the CO, you can add, replace, and remove items.
2/ Use the "Add items as non-billable" option to specify whether the items added to the CO need to be billed.
For example, if the CO is for adding minor accessories, you want to provide this at no additional cost to the customer.
If you want help with creating a CO, check out this article.
Because internal COs do not need to be shared externally, you cannot create and share proposals for them.
Find internal COs
You can filter internal COs created for all projects by clicking "Internal" on the “Project > Change Orders” page.
You can filter internal COs created for a project by clicking "Internal" on the "Details > Change Orders" tab in the Project Details view.
Approval for internal COs
The project manager needs to approve the internal CO for the CO changes to be factored into the project BoM.
Internal COs are assigned only 5 CO states: Draft, In Progress, Pending Approval, Approved, and Approval Rejected.
The following illustration shows how internal COs move through the CO states when the project resource or project manager creates the CO.
Check out this article for more details about the Project Manager Approval functionality.