FIFO Valuation Report

Hi All,
as an example, through Goods Receipt Purchase Order (e.g item 'x' quantity 10 price 2 euros =20 euros).
If finally I get from vendor a Purchase invoice (copy from) with item 'x' quantity 10 price 1 euros =10 euros I should expect to see that this is the value in "Stock Valuation Report". In contrast it shows again the value of Goods Receipt PO.
How it happens?
Best Regards,
Vangelis

Hi Vangelis,
GRPO value is the base for FIFO calculation. You may find all detail layers from OINM table.
Thanks,
Gordon

Similar Messages

FIFO Valuation w/o ML

Hi
Want to take the opinion of experts on this...
1. If I want to have my stock valued on FIFO basis on Month end - Can it be done w/o ML?? ( As far as my understanding goes, it is possible)
If any one can throw a brief light on the process, it would be great... Does FIFO valuation run at month end, posts to FI books?? If yes, Whats the Accounting entry and which keys in OBYC I need to maintain
2. I would need ML only if I want values of the stock as well as consumption based on FIFO on real time basis.... Is this assumption correct??
3. In the 1 above, I think it can give only stock balances based on FIFO.... But not consumption values.... Am I right??
4. If at all I want to derive Consumption values based on FIFO w/o ML - I have a work around in mind.. Just wanted to take opinon on the same
a. Activate Purchase Based Accounting - it would post to P&L also along with Stock a/c.
b. Do FIFO run and it would post to the stock accounts.
c. If we calculate (by way of ABAP report): Op Stock based on FIFO + Purchase account mentioned in 4.a - Cl Stock Value based on FIFO run - This should also give us the Consumption based on FIFO....
br, Ajay M

Hi Ajay,
just focussing on your point 1.
"1. If I want to have my stock valued on FIFO basis on Month end - Can it be done w/o ML?? ( As far as my understanding goes, it is possible)
If any one can throw a brief light on the process, it would be great... Does FIFO valuation run at month end, posts to FI books?? If yes, Whats the Accounting entry and which keys in OBYC I need to maintain?"
YES, FIFO valuation can be done at period end w/o ML.
The process can look like that:
Customizing: Materials Management / Valuation and account assignment / Balance sheet valuation procedures / configure LIFO / FIFO Methods.
Go through the steps in "general information", most of them are self-explaining, the interesting thing is the "define LIFO/FIFO relevant movement types", which might be different from client to client (maybe they have own defined movement types,...).
Also "define LIFO/FIFO methods" is interesting because of the difference of calculating FIFO values based on "single receipts" or not. The difference is well explained in the SAP docu, generally I found the SAP docu for FIFO helpful when I first set up this process on a client system.
Overall, FIFO customizing is not a big thing...
The process itself is like:
Executing MRF4 (or schedule it as a periodically batch job which updates new material masters where the indicator is not set so far).
Using MRF3 to create the document extract (which contains all the necessary info to valuate your stock quantity).
At the end MRF1 to calculate the FIFO value. Here the push button "Tolerances" is interesting which allows client specific settings under which circumstances a FIFO value is calculated or replaced by an alternative value.
The result itself is NOT posted to accounting, but you can store the information in a price field in accounting 2 view in material master (example: tax price 2). And with this information you can use MRN0 to post the FIFO value if you want to. Here don't define a market price source, use tax price 2 as the only comparison price and if FIFO value is lower then the "actual" price in material master, you can create a price change posting based on the FIFO information.
Guess that answers the OBYC entries also.
Best regards, Christian

Stock valuation Report problem in crystal

Hello
I have created Stock Valuation report on crystal & give parameter For Selection 'from Date' To 'To DATE'
I maintain 'On Hand' field for quantity available in between selected period
But Suppose I have Item code 'X01' having actual balnce qty 67 between 1 Jully 2011 To 31 jully 2011 when i run the
report by same date it display 67 qty it right but the Item 'X01' Sold out 5 Qty on date 2 Augst and i again run the report
between date 1 Jully 2011 and 31 jully 2011 it Show 62 qty but upto 31st Jully i have 67 Qty remaining but it show 62 this is wrong
so how i brought 67 qty upto 31 Jully in Crystal Report
In Inventory audit Report it show perfect qty on date selection but i want right value in my crystal report

Hi,
The on hand balance is dynamic. You can not get it from any table for historical balance.
You have to create a temporary table to calculate from day one of inventory transaction for the item.
Thanks,
Gordon

FIFO valuation at material level

Hi masters of SAP!
I have a question about FIFO valuation I know the answer for because I have been reading SAP help on this subject but I am reluctant to beleive that cannot be done any other way.... For FIFO valuation if you read the documentation on it will work the following way:
Period 1 -> 10 unist at 10 £/unit
Period 2 -> 10 units at 5 £/unit
Period 3 -> 5 units at 3 £/unit
If at the end of period 3 we have 7 units left and we want to calculate FIFO value on this stock SAP will do the following:
5x3 + 2x5 = £25 (this is correct)
25/7= £3.571/unit , the system will go and populate all 7 materials with this average price (this is wrong in my opinion, since the system should value differently the 5 units from period 3 and the 2 from period 2)... This is not FIFO, is it?.
Has anyone known any other way so that the material price in the extra fields of the material master gets updated accordingly to the price they were adwuired at?
Please, surprise me!!
Thanks
Mario

I never worked on 45b, but with 46c and Ecc6 it is possible to restrict based on materail type by using authorization object M_MATE_MAR

Stock value in Stock Valuation Report

Does anyone know how you shouid use the stock cost shown by the Stock Valuation Report?
I am looking at a database which uses standard costing, and trying to use the Stock Valuation Report to see what the stock value would be at Moving Average.
Some of the records on the Stock Valuation Report have a zero stock quantity but a stock cost (supposedly Moving Average) and a stock value. There are also records with neagtive stock costs and values.
I have found SAP Notes which confirm that you can get stock values where there are zero quantities. However if you ignore the zero quantity liines, is the Moving Average cost shown accurate or is it the case that this report is essentially useless if you have a continuous stock system?
Regards,
Douglas

Hi Douglas,
I found this in one the SAP Notes.
Symptom
In the Stock Audit Report, generated for a specific warehouse, a value is shown in the 'Cumulative Value' column even if the item does not have quantity.
Other terms
Inventory Audit Report, Stock Audit Report, warehouse, cumulative, value, zero, quantity, average cost, System Initialization, per company, use perpetual inventory, SAP Business One
Reason and Prerequisites
Consulting
Solution
The 'Manage Item Cost per Warehouse' setting in the Administration -> System Initialisation -> Company Details -> Basic Initialisation tab determines the information displayed in the Stock Audit Report.
When this option is selected, each warehouse defined in SAP Business Onemaintains its own cost. This warehouse cost is calculated whenever there is a movement of the item in the specific warehouse.
When this option is not selected, a single cost is maintained for the item per company. This cost is determined by the movement of the item within all warehouses.
SAP Business One uses the calculated costs to reduce the inventory value when stocks are issued. If the cost is managed by warehouse, then,the item cost will be from the specific warehouse where the stocks are issued; otherwise, the item cost will be the single cost.
With the difference between the specific warehouse's and the entire warehouses' costs, there is a possibility that costs remain in the specific warehouse even if the quantity is already zero. In this scenario, viewing the Stock Audit Report per warehouse may not provide accurate cumulative value of the stock in that warehouse since the valuation is a combination of different warehouses. The Stock Audit Report then can be used to check the quantities per warehouse. If the valuation of the stock is needed, the report must be generated for all warehouses
Hope this helps.
Thanks,
Joseph

GRPO not shown in Inventory Valuation report

Hi All
When I run Inventory Valuation report one of the GRPO is not shown in the report where other GRPOs are shown.
To the GRPO which is not shown Landed cost is added so in place of the GRPO landed cost document number is displayed with the same quantity and price which originallly entered in GRPO not shown. Is this normal system behaviour? Please reply
thanks
SV Reddy

Hi Sachin,
thanks for the reply,
But the Landed cost document value in the inventory valuation report is same as GRPO document value. When you add landed cost based on GRPO , in the valuation report it should show GRPO value + Landed cost right, but the system doesnt displya this? any other reason it could be?
thanks
SV Reddy

FIFO Valuation

Hi All,
I need to know whether FIFO valuation can be run on Project stock and if yes how?
Regards
Amitabh

uu

FIFO valuation in Group Currency

Hi Experts,
In our client Materail Ledger is activated. Balance Sheet Valuation Inventory on FIFO was activated. at present we have no problem to execute the FIFO valuation and getting the results for currency 10, i;e., company code currency.
At present business wants to extend this FIFO valuation to Group Currency (means based on the movements in group valuation). I have gone through the all customisation steps, and could not able to find any specific setting for currency option.
Can any one tell me how can i proceed further. will it be possible to valuate the inventory on FIFO basis in Group Currency. If So, Can you please let me know the procedures to be followed.
Thanks & Regards,
S Vasu

Hello Vasu,
You will not need any additional config for the FIFO part since the currency type 10 would act as reference for the group valuation. So you would need to update the settings for currency and valuation profile and the reference variant and transfer control for the group valuation so that it refers to the costing variant used in the legal valuation and the conversion is based on the exchange rate as mentioned in the table.
BR // SG

FIFO Valuation: Two questions

Hi there,
I like to configure FIFO valuation and I have a couple of questions:
Is there anything I have to take care regarding price control ? i.e. can I use FIFO valuation for materials valuated at standard and moving average price ?
Is it possible to update the actual material price (moving or average) after FIFO valuation ? The Online Help specify that the FIFO price can be copied in either the tax price or commercial price fields but there is no mention of the actual price.
Thanks in advance for your help and regards
Thomas

> * Is there anything I have to take care regarding
> price control ? i.e. can I use FIFO valuation for
> materials valuated at standard and moving average
> price ?
both is possible and makes sense.
> * Is it possible to update the actual material price
> (moving or average) after FIFO valuation ? The Online
> Help specify that the FIFO price can be copied in
> either the tax price or commercial price fields buto have an actual revaluation of the
> there is no mention of the actual price.
your observation about the docu is found in
<a href="http://help.sap.com/saphelp_erp2005/helpdata/en/3f/ce913879c8cf29e10000009b38f889/frameset.htm">http://help.sap.com/saphelp_erp2005/helpdata/en/3f/ce913879c8cf29e10000009b38f889/frameset.htm</a>
which does not reflect the actual capabilities. If you have a look into the selection screen of transaction MRY2 you will notice that you can also updae the standard price or moving average price, when checking also 'database update'.
best regards,
Udo

Sub Contracting in FIFO Valuation Method

Dear All,
I am facing one serious problem while using Subcontracting Addon.
We have developed Sub Contracting Add-on based on Standard Valuation Method and it is working fine.
But when we use FIFO Valuation method then it will not allow.
So could you please guide me the process/procedure how to implement Sub Contracting in FIFO Valuation Method.
Means what are changes needs to make it success in FIFO.
Thanks
Vikas

Hi
Yes its right not to change the earlier valued items on one costing method to another.
Imp. to note that, for manufacturing/sub-contracting the best costing method is Standard. Because, in manufacturing processes, its very much impossible to track the exact in and out of material as per FIFO; costing method comes into picture as you made some inward and outward or some movement of material, i.e. in case of purchasing material FIFO starts acting as you start consuming the materials or you transfer the material from one warehouse to another, other than in which you have received the material. When you have material on floor, its quite impossible to track the exact movement of material, means which material is actually being processed on the floor. So, If we use FIFO for such items, then actual costing will be always different from executed/system costing, Also, FIFO is suggested for only those business practices who are following the JIT principle. But, by having Special as costing method for manufacturing items, we avoid such problems to have actual costing, though it may again differ from actual costing, but overall as per the business experience we come to know COGS to actual basis.
In Special Costing method, it's recommendable to revise the Standard cost of the items, periodically.

Correct Valuation report of the stock

Hello Experts,
Our Customer Almatec uses the Business One since January 2011. We have overtaken initial stock
quantities via DTW and gave this initial stock the initial price from the last moving average price of the
former ERP-System.
The company database of Almatec does not use the continuous stock. The issue is that at the end of
every month, there must be reported to the mother company in USA, the quantities and values of the
items on stock. This includes the valuation of the component items on stock and the bill of material
items, depending on the moving average prices of the component items which are included in every bill
of material. A BOM could include single items and also other bill of materials.
Can you describe what to do, to get real moving average prices for item on stock valuation reports, for
component items and bill of material items?
We try to understand the Business One processes of the moving average and how it is really build and which steps are
neccessary to get the right values.
The valuation is not correct so far, is it because the bill of materials have wrong price lists in its
positions?
Best Regards,
Vural

Hi Gorden,
we have not used the continuous stock by this customer, because we had only problems with it by other customers, where we have used it. The continuous stock is not working by SAP. There are only problems with it.
There should be another way to get it witout using the continuous stock. It can be also with indivial queries or programming if you have an idea.
But perhaps you can explain me what the system is doing when you do a "Stock valuation report" - specially when you choose the Calculation Method: Moving Average ???
Thanks,
Vural

Initial Inventory Load - 561 mvmt type, FIFO Valuation

Hello,
We have a requirement wherein the client wants to have the Initial Inventory Load (Mvmt 561) to be valuated as FIFO.
My understanding is, Initial Inventory Load will always be valuated at Std. Price / Moving Avg. Price.
Can we have Initial Inventory Load valuated using FIFO, if so can you please explain in detail.
Note: Not every Material being loaded is Batch Managed and am not sure if Batch Mgmt is a requirement for FIFO valuation.
Thanks for your help.
Regards,
Bharat.

FIFO is a year end valuation,
you can load initial inventory with 561 and use the external value field to enter whatever value you want, SAP then updates the MAP in material master accordingly.

ECC 6.0 - FIFO Valuation - Layers - MRF3

I understand layers cannot be configured for FIFO Valuation in ECC 6.0.
I was told that by suitably completing the selection screen in SAP T.Code MRF3 we can get the details necessary to infer the layer.
I am afraid that this statement may be incorrect as it may have been made with SAP B1 in mind.
My opinion based on the SAP Library documentation in this link: http://help.sap.com/saphelp_erp60_sp/helpdata/en/3f/ce913879c8cf29e10000009b38f889/frameset.htm
Will appreciate your inputs from your experience or references.

Entry to be posted at period end
Dr-Vendor 200
Cr-Exchange gain/loss 10
Cr-Clearing Acc 190
Entry to be posted at period start
Dr-Clearing Acc 200
Cr-Vendor Acc 200
System should not consider bank account for the same....pls check

About FIFO valuation

Hi Gurus,
How to use FIFO valuation for the material with out using Batch Management. Please explain me step by step procedure.

You cannot use FIFO valuation in normal course in SAP. FIFO valuation is available only in Balance Sheet valuation.
During normal day-to-day operations, inventory valuation is based on standard price or moving average price. FIFO and LIFO are not followed.
Lakshman

How to activate FIFO Valuation?

Hi,
We need to follow the steps if we need to valuate our inventory by means of FIFO Scenario (I got the link from SDN)
1. In T-code OMWE, activate the balance sheet valuation as LIFO Valuation not active & FIFO Valuation active.
2. In T-code MRLH, FIFO Maintained at company code or plant level.
3. In T-code OMWL, set mean receipt price at valuation ares level if Plant or at company code level if at company code level.
4. Configure FIFO Valuation ares for teh respective year.
5. In T-code OMWP, Configure FIFO Method.
6. In T-code OMW4, Movemnet type settings for FIFO maintained. Generally, no chnages made.
7. Select material for FIFO in Tcode MRF4.
8. Execute FIFO Valuation- Tcode MRF1.
1. When do we need to execute T Code MRF1? Do we need to run the same on period closing or daily basis & by whom- MM or FI ?
2. What will happen in the case of Stock Transfer? Will it transfer the Material with Price of FIRST Stocks received?
3. Can we activate the LIFO/ FIFO in Material Master (in Accounting View) for all the Materials during Material creation only?
4. Is it mandatory to activate Batch Management to achieve FIFO Valuation?
Regards,
Aditi

hi Adi,
please find my answers in bold letter
1. When do we need to execute T Code MRF1? Do we need to run the same on period closing or daily basis & by whom- MM or FI ?
A- This TCode is used to set the LIFO/FIFO indicator in accounting-2 view in material master
2. What will happen in the case of Stock Transfer? Will it transfer the Material with Price of FIRST Stocks received?
3. Can we activate the LIFO/ FIFO in Material Master (in Accounting View) for all the Materials during Material creation only?
A- You can update later as well by MRF1
4. Is it mandatory to activate Batch Management to achieve FIFO Valuation?
A-No, I don't think so
regards,
Vineet

FIFO Valuation Report

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