Changing from Standard cost to FIFO

Hi Experts,
One of my client want to change from standard cost to FIFO.
Can you please specify what precautions should I take before proceeding this change ?(system wise/accounting )
(I am aware of back up procedures,please donot specify that procedures)
What are the things I should be aware of ?(system wise )
Thank you
bishal

Hi,
Issue all the stock. After that you can change the valuation method.
This is a good time to see if everything is alright with the system.
When all the stock has been issued the following should be true:
- Inventory Audit Report for all items and all warehouses should be 0 (zero)
- The balance of all the stock accounts should at this time be 0 (zero)
If this is not the case. Contact support.
I take it for granted that you will do this in a testenvironment before doing it on the productive database.
Hope it helps.
Jesper

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Hello,
Its an nice idea to switch from standard to actual costing. It would be advisable to make this switch over happen in a new period praferably with a new year. You would need to carry out the settings for material ledger / actual costing and for the accounting settings you may refer to sap note 908737.
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The trigger to transfer data from SAP to Unix directory should be whenever one of the SAP field values change (standard cost, master price, Type Of Sales) or whenever a new item is added to SAP. The data will be interfaced out of SAP NIGHTLY using the certain data format.
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Hi Lakshminarayanan
thanks for your information.
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Hi Sasi
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Hi Deven,
I was also in the same confusion in last few month,
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Because finished Product with MVP has no control on your Price, it always Fluctuates.
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To have control on our finished product companies fix STD Price.
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Hi All,
There is a material which has a negative stock for the previous period and the previous period is already closed.
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AK

the price control indicator can be changed from standard price to moving avg price at any time .......with some restrictions.
And one of these restriction is the one you see.
You must not have negative stock.
Hence you have to make the negative stock zero
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Dear sap friends
Company want to use standard costing in sap, however they are changing their standard costs sometimes in the middle of the month and various times per month. The discussion is around what the best practice should be and to understand why theya re changing these so frequently. Accordingly we will need to find a soultion for them and/ or they need to be educated and use standard costing as it should be.
Kindly give me your advise about the standard price changing every time in the best practise. what i suppose to give them feed back and what is the best soultion i can provide the client.
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Moderator: Please observe the [forum rules|/thread/931177 [original link is broken];. This is the second thread of yours we have to lock due to an inappropriate thread title - please DO NOT use the word "urgent" in the title.
Edited by: Karl Helm on Jul 11, 2008 9:58 AM

Hi Satesh,
As per your email we can change the standard price only period end. if customer wants to change middle of month or weekly what i suppose to be do.. what advice i can give to the client. also can you explain to me about standard price, and document price. i got a note standard price and document price difference will go to variance. please explain standard price and documnet price. When they are calcuallating vairance.
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what is the alternative way to update the standard price for those materials ( with out reversing the goods movements).
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When you are using Material Ledger, after goods movemnets for materials, no need to change the standard cost estimate as Actual costing run will take care to derive the PUP price.
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Run CK11N
Run CK24.
Then release the billing document.
Let me know if you need more details.
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We are going to keep our existing standards for at least some portion of fiscal 2010. The product costs that are in SAP are due to expire on 12/31/2009. My question is that can I change the validity dates on the existing costs or do I have to redo standard costs for the new year.
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Kishore

Hi'
If you don't have any changes in standard cost estimate you have to rerun the standard cost for new period..
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Standard Cost and 'What if' cost
Please explain what is the difference between Standard Cost and 'What if' cost estimate.
Does anybody has the idea about 'What If' cost estimate.
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Hi Venkat,
First of all there is no concept called What if cost in SAP.
I feel you might be talking about the simulation cost.
Simulation cost is a cost estimate done based on certain different parameters which may be different from standard cost.
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Hi Expert
I need to find out the prerequisites for changing the valuation method of an item from Moving average to Standard costing.
(In the forums i found a note which discusses the change of costing method from FIFO to Moving average.)
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Hi Son
Let me rephrase my previous question as i have asked it incorrectly.
Step 1. Make all quantities of the stock zero and also close all Open PO, SO etc
Step 2. change the inventory valuation method
Step 3. Enter new stock prices for the standard cost through stock revaluation. My question is can this be (step 3) done through DTW
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Kind Regards
Apsara

I have moved from the US to Norway, and want to change my apple ID to the Norwegian appstore. However, I am not allowed ot change from the US store before I use up my balance, which is 0.17 dollar. The problem is that nothing costs 0.17 dollar.Please help

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Changing from Standard cost to FIFO

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