FIFO Valuation with Material Ledger !

Question

Hi, 
How do we accomplish FIFO Valuation using Material Ledger ?
We have activated the Material Ledger, with Single - Level Determination; Standard Price S.  On execution of Single-Level Price Determination, we get the Periodic Unit Price -- which is the Weighted Average Price for the Receipts for the period involved.
I came across SAP Forums, which claim that Material Ledger is the FIFO Valuation on real-time basis. However, this doesn't seem to be true. The Goods Issued are assigned the Periodic Unit Price (calculated above -- i.e the Weighted Average Price ).
In addition, we have Configured the FIFO Balance Sheet Valuation Procedure, through the MM menu. The FIFO Value for the Material is giving weird results. Adding the total Inventory for all the Receipts till date and over-riding the period selection for Single Receipts.  For monthly receipts, the system just gives the Weighted Average Price again.
The Business is expecting the FIFO valution for the Inventory Balance on Monthly Basis. ( We are using Material Ledger, so that we can roll-up this FIFO Valuation  of the Raw Material ito Gross up into the Finished Product
-- Thanks

Answer 1

Hi Kenny ,
BASIC STEPS THAT CAN BE FOLLOWED FOR  ENDING INVENTORY VALUATION :
Ending Inventory is valued  as per FIFO calculated through following steps:
     Run the price calculation (Txn: KSII) u2013 check that all      auxiliary Cost centers are zero
     Run Txn:MRF3 (summarization of documents for the      FIFO calculation.)
     Run MRF1 (calculation of FIFO)
     Check if the FIFO calc. is correct via MR35
After ML run the ending inventory value should be equal to the value in MR35 and so balance amount not yet loaded to ending inventory through FIFO valuation is posted to consumption
Exception: If total receipts for a period is less than ending inventory quantity .In this case the EI is valued at weighted average
Please check wether the steps have been properly followed and the execption doesnot exists..
Also, hope your Price Determination is "3" and price control is "S" in Material Master..
Regards
Sarada