FIFO Inventory valuation without Balance Sheet Valuation

Our business wants to know if they can have real-time FIFO inventory valuation;
At a give point, When we perform and update the material prices through the Balance sheet Valuation - FIFO procedure; system automatically revaluates the inventory at FIFO with offsetting to an expense account.
However, the requirement is to have FIFO real time without performing any month end tasks/ postings to calculate and update the material prices.
Given that the existing material price controls (S and V); Is the above possible ?
With Material Ledger; some of the standard functionalities can be leveraged i,e to have one valuation for std/ actual and the other to have FIFO valuation but the business thinks this is too much of an effort to maintain this functionality. Since, even for this option - the business has to run month end jobs.
Thanks !

Hi
Real time FIFO valuatopn is some thing which would require ML...
however, there are companies who valuated the inventory based on FIFO at period end w/o any use of ML...
I am not very sure as I have never used it - But using MRN9 you can have a comparison of inventory values as per the 2 principles and if you tick "Update Database", it would post to the books....
Please await further replies from the forum members on this...
br,Ajay M

Similar Messages

Plant wise inventory in trial balance / balance sheet

hi gurus,
our client has got 5 plants and wants plant wise inventory in the balance sheet. how can this be achieved.

hi,
i am not talking about the reports, but the data in the balance sheet. when we run the balance sheet, we will get data about each and every thing like (consumption / inventory etc.,).
now our client is getting the inventory of finished goods at the company level (ie no plant wise split up). they want to have plant wise split up (ie. balance sheet should come like inventory of finished goods in plant 1100, inventory of finished goods at plant 1900 etc.,).
hope this explains my requirement better

Balance Sheet *without* the Foreign Currency Valuation

Hi FI experts,
We have an issue and need help from the community.
Our customer wants to have a Balance Sheet without the Foreign Currency Valuation, besides the normal balance sheet with FC valuation.
Does anyone in the group have already faced an issue like this?
Is there any possibility to generate the balance sheet without FC valuation even after run F.05?
Thanks in advance.
James Francisco
SAP FI/PS Consultant.

Hi,
You certainly can do this by creating a financial statement version that does not contain the revaluation balance sheet adjustment accounts and the gain/loss accounts. If you have accounts that are getting revaluated against itself and not a seperate adjustment account, then you can not. For accounts that are not open item, they will revalue against themselves so you need to check on that.
Thanks,
Jes

** Balance sheet at Profit center with Inventory valuation at CoCd level **

Scenario:
Inventory valuation is at CoCd level. Moving Average costing.
There are 2 plants in CoCd 3000.
1.     I created material 1234 in plant P1 (profit ctr P1) & in plant P2 (profit ctr P2)
2.     Then, I received a PO - $1000 (100 qty @ $10) in plant P1 & $1100 (100 qty @ $11) in plant P2
3.     So the Moving average at CoCd is $10.50
4.     I created a Sales order to ship out 100 qty from plant P1. The PGI posted at moving average at CoCd level i.e.
        Dr COGS $1050
        Cr Inventory $1050
5.     Now, Inventory GL account value becomes -ve 50 at plant P1
6.     MB52 looks wrong as below. It doesnu2019t show -50 in P1 & 1100 in P2
Question:
Is there any standard way to accomplish Balance sheets at Profit center with Inventory valuation at CoCd level?
- We can do custom development to distribute Inventory balance on profit centers upon receipts or Invoice receipts (i.e. anything that updates the Moving Avg at CoCd) eg in step 2, when $1100 (100 qty @ $11) in plant P2 is received, then post +500 to inventory in P1 & -500 in P2, to make both P1 & P2 at 1050.
However, this would be huge effort on Development, Testing & ongoing maintenance.
- Another custom way would be to post to Profit centers a periodic entry to correct Inventory balance to (Qty on hand x Moving Avg at CoCd)
Please let me know your thoughts. Thanks.

Hi,
I don't think so it's happen at valuation at Company code level.
Inventory Valuation always at plant level only not at Profit center and company code level.
In your case 2 Plants and 2 Profit centers. There is no chance to different the value at Profit center . Check once in Dev. server with example.
Regards,
Kishroe

F.05 foreign currency revaluation (Balance sheet preparation valuation)

Hi,
I have run the revaluation (F.05) for a balance sheet account by mistake ticking the "balance sheet preparation valuation" box. Hence i could see some value populated in the coulmn old differences in the revaluation report. Please advice will this have any wrong impact to that account. if so how can i reset the posting made and run the revaluation without ticking the "balance sheet preparation valuation" box.
Thanks and Regards,
VK

Hello VK，
You could reset the valuation difference by using the following method:
1.T-cd:OB59->selecting the valuation method ->in valuation precedure area, selecting "reset" radio button->save it.
2. T-cd:F.05 ->using the same parameters that you ticked the balance sheet preparation valuation" box when you ran F.05 last time.
3.After running F.05->BSEG-BDIFF will be reset to zero in valuated docs.
Best Regards,
Gladys xing

Balance sheet valuation not active (Customizing transaction OMWE)

Hi,
For FIFO Valuation, I have done the following SPRO setting:
1. Activate balance sheet valuation (Trans: OMWE) - as LIFO not relevant, FIFO active.
2. Defined LIFO/FIFO valuation levels (Trans: OMWL) - set as Plant (valuation area).
3. Configured FIFO Valuation areas for year 2008.
4. Define LIFO/FIFO method (Trans: OMWP) - FIFO01 as CUR u2013 current
5. No changes made to movements relevant to FIFO (Trans: OMW4);
While running the MRF1, the system is throwing the following message:
Balance sheet valuation not active (Customizing transaction OMWE)
Message no. MY043
Pls. help in rectifying the problem.
Pls. note that I have already activated the LIFO/FIFO-relevant Check box while creating the Material.
Do I need to execute MRF4 before executing MRF1?
Regards,

hey guys... can anyone help me to solve this issue....

Balance sheet valuation

Dear All,
As I know only P&L hit copa.
What has copa got to do with bs valuation or stock/inventory valuation?
When carry out balance sheet valuation, will hit copa?
Thanks

Hi
1) credit p&l will credit revenue account. if debit p&l that will be expenses account.
Yes, thats correct
2) the valuation can also reverse if we do not want it to happen. right? just like any other finance valuation like goods in transit or foreign currency valuation.
No.. This valuation has to happen.. You cant stop it.... May be you can pass manual JVs to nullify the effect.. BUt you cant stop it from getting posted
3) what is the difference of going to copa or cost center?
if it goes to cost center, you will treat it as an overhead.. It will form a part of your activity price calculated on that cost center OR will form part of overhead rate maintained for the costing sheet
Taking revaluation amount to cost center makes sense in case of Semi Fin Goods which are not directly sold....
Taking to COPA makes sense in case of Finished Goods which are directly sold, as you can directly map it to the sales revenue and COGS
Hope I have clarified your questions properly.. Do revert for further clarifications, if any
Regards
Ajay M

Balance Sheet Valuation Procedures

Dear Experts,
In IMG Setting for :-
Balance Sheet Valuation Procedures -> Configure LIFO/FIFO Method -> General Informaiton -> Activate LIFO/FIFO Valuation (Tcode: OMW4) "LIFO Valuation Active" and "FIFO Valuation Active" button are SELECTED, what does this mean? Balance sheet valuation is based on which valuation? Please advise.
Thank you.

Hi ,
What you are looking at is first level of definition. There are further levels of control on mvt.types etc.
By default FIFO will be the valuation procedure , but you can set this to different based on requirement.
If you activate only FIFO or LIFO at first level you are left with no choice for further levels.
You may have to consult FI person on how FIFO/LIFO procedure is linked to balance sheet...
Thanks,
sudhakar

Currency Valuation G/L Account Balance Sheet Posting F.05

Hi all,
Is there a way to post the Currency Valuation F.05 for G/L account balance sheet posting to another account than itself.
I cannot find any configuration on that, and a trace look to show that it goes back to SKA1,
SKAT & SKB1.
Open item have configuration in OBA1 and we can fix the posting where we want.
But the currency valuation for the account balance always happen to the same account.
Thank you,
Carole

Bal.sheet adj.1 in OBA1 is for that only. The GL account is for Identifying that this is FC account in case of Valuation Loss/ Gain.
Incase of realized loss or gain, it is the same GL account that has to hit in the local currency.

Foreign Currency valuation- balance sheet preparation valuation

Hi,
I have a doubt in foreign currency valuation.
When we tick Balance sheet preparation valuation ( in t-code F.05), no reverse postings are generating, eventhough i tick reverse postings. why is this happening?.
What is happening when we use Balance sheet preparation valuation in Foreign currency valuation?
Thanks,
Vinay

Vinay,
Yes as explained earlier it converts balance sheet from one( Local) currency to Another (foreign) currency on a particular date.
For example if your balance sheet currency is EUR and your foreign currency is USD. It will convert EUR into USD on that particular date on all open items and post it to
the expense and revenue accounts for exchange rate differences from valuations. For payable and receivables accounts you must also define the financial statements adjustment accounts.
This is what it happens check your own thread
http://scn.sap.com/message/14258690#14258690
Best regards
Hrushikesh

Balance sheet adjustment account for Foreign Currency Valuation

Hi all,
I know that we enter AP /AR balance sheet adjustment account for Open items account when we configure for Foreign currency valuation with Tcode OBA1 and KDF. I wanted to know what account can I enter in that field for other balance sheet account which are not open item managed?
Also, Do we valuate GR/IR accounts in foreign currency valuation?? If yes, what balance sheet adjustment account do we enter for those accounts?
Thank you.

HI,
The valuation of <b>foreign currency balances</b> requires a special key that is assigned the gain and loss accounts for posting any exchange rate differences that occur during valuation. You can freely define this key. You then enter it in the master records of the accounts that you want to valuate. To post the differences that are determined from a group of G/L accounts to the same gain or loss accounts, enter the same key for all these G/L accounts.
Create the Create here with Tcode OBA1 and KDB-Exch. Rate Diff. using Exch. Rate Key
And assign this in the GL account master in the Control Tab.
Thanks
Vijay

Inventory Valuation by FIFO method.

Hi All,
     We need to know if it is possible to get any report where in we can know what would the inventory valuation be if inventory is to be valued by FIFO method. Currently the valuation method is moving average. We need this for year end purpose only. We do not want to post any entries or change the existing valuation of the inventory for any of the items. We only need a simulation report for Inventory valuation by FIFO method. Is there any way we can get such a report??
Thanks,
Pritesh.

Hi,
     Thanks for the quick reply. I have configured FIFO valuation method and tried on the test server. I have the following 2 questions in it:
1) When executing MRF1, there is an error while creating the Batch Input session.
    bdc_close_group, session not opened
      message no. 00330
2) If the session does get created, as per my understanding if the session is processed, system executes the Tcode MR22 in background and postings take place as
Inventory account    -    DR
Revaluation account - CR.
   My doubt is that, will this change the existing valuation of the Inventory ? We do not want to change the existing valuation.
Thanks,
Pritesh.

How to get Inventory -Finished Goods Values Plant wise in Balance Sheet

Hi,
1. Customer is using same finsihed goods material for plant 1100 and plant 1900
2. But the want to see 2 differant lines in balance sheet for inventory finished product.
3. For this can i create 2 diffferant valuation classes and 2 differant GL accounts? And assign the GL Accounts in BSX - OBYC?
Kindly help me..is there anything else do i need to do?
Thanks
Vimal

Hi,
The setting of different valuation class and different G/L accounts is fine for different plants.
Just see that your financial statment version is showing this two G/L account in the Finished goods inventory list and then you are done.
Regards,
Gaurav

Inventory valuation in SAP IS retail

Hi SAP gurus,
Anybody please help me to configure inventory valuation in SAP IS retail.
I have little knowledge in Joint valuation and split valuation in MM.
May I follow the same procedure for SAP IS retail also or else, help me for the same.
Expecting answers ASAP.
Regards,
Logi

Hi Venu
All of us are aware that the inventory valuation method — such as FIFO, LIFO, or Averaging — has an impact on the business’s profit margin.
I am only aware that the following Standard Functions have not been tested with Articles in SAP Retail:
Plant maintenance (PM)
Subcontracting with generic articles
LIFO and FIFO analysis
Production planning (PP-PI)
Using serial numbers with generic articles
Project System (PS)
The caveat coming out of the fact above is to ensure sure that these functions work correctly in your project.
Still looking for more information on any constraints of using LIFO FIFO for SAP Retail.

Difference between Inventory Valuation Methods...

Hi
Can any say how does the 3 Inventory Valuation Methods Suits for the business Process...names FIFO for what kind of Businesses and Standard & Moving Average so on...
If any links to learn ...please let me know it....
Thanks

Hi Gopi,
Check below:
Moving Average– the method is based on the calculation of an average cost for the item in each sales and purchasing transaction.
Standard– the standard pricing system permits the selection of a fixed price, which is then used for all transactions.
FIFO– an additional perpetual inventory system, in which goods purchased first are sold first, regardless of the actual goods flow.
Hope this helps
Regards::::
Atul Chakraborty

FIFO Inventory valuation without Balance Sheet Valuation

Similar Messages

Maybe you are looking for