Batch inventory with FIFO costing

Hello expert,
I am running into a weird situation ;
My customer processes a product return from customers, foa batch controlled item (all ther items are FIFO), when the return is processed, the batch number is manually created (because the batch was shipped to the customer prior to the SAP implementation).
My question is ;  what about the cost ??? If I have inventory left, it picks up a cost from 'I don't know where' and if I have no more inventory left when I process the return from customer, the cost is zero ..... why doesn't it ask me for a cost if I create a new batch ???
Yves Beaucage

Hello Yves Beaucage,
As in your case, the cost would be automatically assigned from the first layer of inventory because you are using FIFO.  First Out is always associated with first in.
Thanks,
Gordon

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