FIFO Valuation

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

uu

Similar Messages

  • 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

  • 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.

  • 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

  • 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 within MM (without WM)

    Hello SAP-Experts,
    I want to ask you how to customize the system with t.c. spro and how to setup material master
    to establish the FIFO valuation for some specific materials (e.g. for one or more material type(s)) without any WM functionalities.
    What I read in this forums were the following, but I miss a thin red line or rather a guide, and I miss complete information on this:
    1. Batch Management has to be enabled in customizing and material master.
    => customizing: logistics general - batch management - ???
    => material master: set indicator for batch management to active (is that all?)
    ... and how to make sure that when using MIGO for goods movement, the batches will be found automatically without inputing anything manually?
    2. Classification has to be enabled for those material types which do need the FIFO. A class must be assigned which includes characteristics (e.g. shelf life expiration date, sth. else?)
    3. Condition records have to be maintained (why, which?)
    4. Sorting rules have to be defined for FIFO (where, how?)
    5. Then there are also LIFO/FIFO settings within SPRO-MM-Valuationetc.-Balance Sheet Valuation Procecdure-Configure LIFO/FIFO Methods.
    Has this also to be used? Why, why not?
    6. For what is then the indicator in material master, Accounting view 2: "LIFO/FIFO relevant" - only for cost balance sheet?
    What I need is something like a guide showing the steps which have to be done.
    Then an example booking for FIFO in the system should be done as follows:
    01.01.2000: GR of material A: 2 pieces a 10 EUR = 20 EUR in sum
    05.01.2000: GR of material A: 2 pieces a 15 EUR = 30 EUR in sum
    10.01.2000: GI of material A: 3 pieces (2x10 + 1x15) = 35 EUR in sum, 15 EUR still on stock
    Thank you in advance for your help!
    Gernot

    Dear,
    I am also concentrating on this and 2,3 days back posted a question regarding FIFO valution without any answers.
    Basing on the study, what I understood is FIFO VALUATION and FIFO picking is two different configurations to be done.
    FIFO valuation is only relevant for Balance sheet valuation of material.
    FIFO picking used for inventory management.
    For FIFO balance sheet valaution :
    1. Activate balance sheet valuation (Trans: OMWE) - as LIFO not relevant, FIFO active.
    2. Defined LIFO/FIFO valuation levels (Trans: OMWL) - set as Plant (valuationa rea).
    3. Configured FIFO Valuation areas for year 2008.
    4. Define LIFO/FIFO method (Trans: OMWP) - as CUR - current.
    5. No changes made to movements relevant to FIFO (Trans: OMW4) no changes
    6. Selection of Material to FIFO (Trans: MRF4), in this getting error
    Selected material, entered plant and selected SET indicator executing. The system giving message as 'VALUATION AREA NOT DEFINED FOR FIFO' (M8885). Here i stopped and working on it. Looking like something related FI/CO configuration required.
    For FIFO inventory picking:
    You need to have a bacthmanagement activate
    Step - 1 Create Characteristics
    ZLASTGRDATE - Date of last goods receipt
    Transaction code CT04
    Step - 2 Create Characteristics
    ZBATCH - Batch Number
    Transaction code CT04
    Step - 3 Create a class MRO_BATCH_FIFO_CLS
    Transaction code CL02
    Step - 4 Add Characteristics ZLASTGRDATE
    and
    ZBATCH
    Step - 5 Create a Condition Record Batch search Strategy
    Step - 6 Select Plant and Material Key combination
    - Enter the Material code
    -Select selection Criteria save and come back
    - Select Sort rule as Ascending and Enter the validity rule
    Step - 7 Assign this class to the material in Classification view
    Step 8
    Create the PO for the Material and post the Goods Receipts MIGO.
    System will assign a batch number and also updates the Batch number and
    GR Date. Post thre four GRs with different dates. first with
    the current date , then some with the old dates. Sytem will captures the
    batch
    number and the Gr date. This is only to study how the system
    proposes the GR dates
    Step - 9 Post a Goods Issue for the material, and when you enter batchnumber
    enter * and press enter. then you will observe how system propses the
    quantities based on the batches and GR dates in FIFO order
    This I didnt try, coz our first preference is FIFO Valuation in Balance sheet.
    If you have any information regarding this point, please share with me for better results.
    Regards,
    Syed Hussain.

  • FIFO valuation with stock transfer

    Hello
    I would like to include stock transfer movements between 2 plants within the same company code in my FIFO valuation. The price to be used in the receiving plant shall be the std price from the delivering plant. Unfortunately I don't have success with the marking of movement types in MRF3... Can any of you help me?
    Best regards
    Søren Kirch
    LOGSTOR
    Edited by: Søren Kirch Jensen on Dec 22, 2008 3:38 PM

    xxx

  • Fifo valuation in retail

    Hi there,
    I want to now if FIFO valuation is support in retail solution, and if someone have information about it.
    Thanks in advance for your help and regards
    Mariana
    Message was edited by:
            Mariana Cuencio

    Hi Mariana,
    In retailing it is common practice to record the retail price of inventory (retail method). Since it is extremely time-consuming to determine all the costs associated with the procurement of an article without the use of modern IT systems, it is all the more difficult to determine the delivered cost of merchandise. In view of this, the delivered cost of an article is usually taken as an average price calculated on the basis of the retail value.
    <b>(a) Valuating inventory at delivered prices (cost inventory method)</b>
    You can only apply this method if you can ensure that all changes involving an article can be accurately recorded. What is known in the trade as the “cost inventory method” or the “cost method” involves valuating stocks at delivered prices and assigning costs to individual articles.
    <b>(b) Valuating inventory at retail (retail inventory method)</b>
    What is known in the trade as the “retail inventory method” or the “retail method” involves valuating stocks at retail, often aggregated at merchandise category or departmental level. Stock is updated at retail for every merchandise category and department. For balance sheet valuation purposes on the balance sheet key date, the delivered cost of the stock is worked out based on a gross margin between cost and retail. (<i>You can only use the retail method for inventory managed on a value-only basis)</i>
    Bye,
    Muralidhara

  • FIFO Valuation with Material Ledger !

    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

    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

  • FIFO Valuation - Benefit

    Hi Gurus,
    May I know what's the benefit of running FIFO Valuation? How will SAP calculate the material cost by FIFO Valuation? Any example of the calculation?
    Also, what are the diff of running FIFO valuation compared to Moving Average Price?
    Appreciate feedback from the FIFO valuation gurus....
    Thanks!
    Regards,
    Michelle Low

    Hi,
    I don't know a way ro set MYMP1-XTERN for some records to avoid deletion durign FIFO extract-preparation.
    What I made once is assigning the FIFO-value in one material master valuation price field (accounting 2) and used this value as one of the sources in MRN0 valuation.
    So if you add your external value to one of the valuation fields in material master, you can create FIFO-extracts without affecting your external data source and store the FIFO-value in another valuation field in mat. master.
    Valuate your materials using MRN0 comparing your FIFO-value and your external source value.
    Best regards, Christian

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