It's an adverb, so it needs to define a verb, an adjective or another adverb.
This memo should only be circulated internally.
The adjective "internal" is used much more often.
This memo is only for internal circulation.
The internal organs include all the major organs except the skin.
And don't confuse "internally" with the similar-sounding "eternally."
If you could do me this favor, I'd be eternally grateful.