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.

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Fifo method inventory valuation sql query.

Dear all,
I want to stock valuation by FIFO method. if some one have any solution please give me advise.
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You won't get any answers with a question like that...
What is "to stock valuation by FIFO method"?
Give us an example.

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

Error in "Inventory Valuation Method using Moving Average"

Dear Sir,
Here I am using moving average as inventory valuation method at one of my client. I want to know that in SAP Business One, in case of F.G. valuation we can only get the valuation of Raw Material and not the direct expenses cost.
Can you please tell me how should i put the Direct Expense Cost (e.g. Labor Rate) in F.G. inventory Valuation?
Please reply ASAP.
Thanks & Regards
SS

Hi,
Only the raw material cost will be added to the Cost of the FG based on the Quantity and price in the BOM.
Ex:
To make Parent Item FG 1 nos , you required 2 nos of Child Item of Rs 10 each,
Create Bom for the same and refresh the cost of the FG (will find a refresh arrow in the Bottom of the BOM -Screen)
Once you Issue child parts to the respective production order and make a receipt for the Parent Item the cost of the FG will be posted as RS 20
If you want to add the labor cost to the FG there is no direct provision to add the cost in SBO, we have give a work around only as follows.
Create a Service Item ex.Labor Cost and give the Standard cost for that Item in inventory tab For example for Rs 200/Hr
Now add the Service item (Labor Cost) in the Bill of material and in the Quantity field give the Time for the labor required is if the Labor Time taken is 30 min to make 1 FG give 0.5 ie (convert the cycle time to Hours and give the decimal value)
then refresh the BOM,
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The above method can be used only if you have determined a standard time of labor to manufacture,
With regards,
G.Eshvanth Singh

Inventory Valuation Method

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My client has the requirement like comparison of Item with different valuation method in a single report.
Is there any provision to do this.
Please suggest
Regards,
Vikram

Dear Vikram,
Inventory Valuation Method is inteneded as a managerial report to check what-if scenarios. For instance, you can see what happens if you value an item based on a different costing method. This report is not intended to be used as report for auditing. For audititng purposes use the Inventory Audit Report.
You can use any standard method for the inventory valuation. You can also define various criteria to restrict the selection for inventory valuation.
Goto Inventory->Inventory Report->Inventory Valuation Report.
You will have to export to excel and consolidate the results.
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SAP Business One Forums Team

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

DRQ: Specific Identification Method for Inventory Valuation

This is a request to incorporate the features of Specific Identification Method (or Actual Cost) of Inventory Valuation for Serial Number / Batch Number controlled items.
Found lots of threads in the Forum regarding this topic, but could not able find out any answer from SAP.
Sometimes back, myself posted the same thread, but got reply that Navision has this features please use that.
Hope SAP Team has enough knowledge about this method of valuation, that is why I am not giving any example.
If require I can provide enough example on this topic.
Thanks & Regards
Anjan Bhowmick

Hi Peter,
This is the same requirement we need in mexico. What do you mean with "Next major releases"?
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Waiting for your response.
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Inventory valuation simulation report

Hi,
I'm having trouble understanding this report. I have attached an image of the selection criteria. Current inventory is valuated using FIFO. How do i interpret the outcome of this report when i choose Moving Average as the valuation method for the two inventory items chosen(DT1L0001 & DTL10002)?
Thanks & Regards
Aziz

Hi,
Your cumulative quantity and same way cumulative values calculated
First transaction quantity = 15        Cumulative quantity = 15
Second transaction          = 10        Cumulative quantity = 25 (15+10)
Third transaction              = -1         Cumulative quantity = 24 (25-1)
Fourth transaction            =   1        Cumulative quantity = 25 (24 +1)
Fifth transaction            =   -1         Cumulative quantity = 24 (25 -1)
Last transaction            =   -1        Cumulative quantity = 23 (24 -1)
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Inventory Write Down FIFO

Hi
Our business is in the Fashion Industry and we need to regularly write down the value of our stock. We wish to write down the value of our stock for our year end accounts to 31/12/2014 and then each month using a fixed percentage. We use FIFO as the valuation method for inventory.
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Hi Robert,
As manual process is not favorable by you so only option left is to build a small add on to fulfill your requirement.
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Chintan

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)
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Still looking for more information on any constraints of using LIFO FIFO for SAP Retail.

MM period / Year Closing Activity and inventory Valuation ??

Hallow Experts !
At the time of Period end, we close the Posting Period in Transaction Code - MMPV. So as a Result system opens Next posting period Automatically. (Please Correct if i am wrong). At a time two posting periods are open, Current and previous posting period.
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I want to understand the System logic for this inventory valuation carry forward in brief.
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Hi,
Before closing a period, you must ensure that all the transactions related to are posted( Examples: GR,IR etc).Once you close the period in MM side, its difficult to post again in that closed period. For more read the SAP notes 487381.
You can check which period is open in MMRV( you can set here back posting allowed or not) and close the period in MMPV.
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4.OMWD: Active Valuation Area,
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Regards,
Biju K

Free Goods - FI & Inventory valuation Impact

Dear All,
I would like to know what will be the FI & Inventory valuation impacts in the below 2 cases
1. When free goods indicator is flagged for an item in PO.
2. When free goods indicator is not flagged, but GR-IV and Invoice receipt indicator is unchecked.
I understand what free goods are, but what i need to know is, how will the inventory be valued in both the cases & what will be the FI impact.
I hope my question is clear, await inputs.
Regards,
Vivek

Hi,
First of all, if you activate "Free" indicator then "GR based IV" and "Invoice Receipt" indicators get deactivated automatically or when you deactivate "Invoice Receipt" indicator then "Free" indicator gets activated automatically. It's viceversa.
Now It depends upon the Price Control you have maintained in the material master.
Once you activate "Free" item indicator OR deactivate "Invoice Receipt" indicator in PO then at the time of GR if;
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Goods Receipt happens on zero value and inturn reduces the MAP of the material which affects the material valuation. And No FI Entry will get generated.
For e.g. Current Stock of Material = 100 KG and MAP = 110 INR so Material Value = 11000 INR
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Price Control "S" (Standard Price)
After GR, there is not any effect on the Standard price of the material or material valuation.
For e.g. Current Stock of Material = 100 KG and SP = 110 INR so Material Value = 11000 INR
After GR of 10 KG on FOC basis, Current Stock of Material = 110 KG, Material Value = 11000 INR and SP = 110 INR
Here At the time of GR following A/c entry get generated;
Price Difference A/c - Dr - 1100 INR
GR/IR Clearing A/c - Cr - 1100 INR

How to run "Transfer Invoice Variance to Inventory Valuation"

Hi friends,
Im using oracle 11i. we have purchasing, inventory, AP, GL. Pls give me navigation path of running Transfer Invoice Variance to Inventory Valuation concurrent program. i have created an invoice with some addition cost (freight) that is not included in Purchase order. i have run "Transfer payalbes to general ledger" and posted those journals. I need to run Transfer Invoice Variance to Inventory Valuation program so that item costs get re-averaged. how can i do that? pls provide me the exact path including responsibility name.
Thanks in advance.
LISAN

Hi,
You can also refer to:
Oracle Cost Management User's Guide
http://download.oracle.com/docs/cd/B25516_18/current/acrobat/115cstug.pdf
Thanks,
Hussein

How to pick consignment stock @ FIFO method when involved multiple vendors

Dear Guru s ,
I need some information/ logic on how to pick consignment stock @ FIFO method when involved multiple vendors (who supplies consignement goods) .
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Anil

Hi Anil
MMBE will show you total stock, your logic is correct , you can go for MSEG , but you need to add opening stock for that material for the period.
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Report with difference of prices from Inventory Valuation

Hello!
I need report with result from Inventory Valuation: Difference of prices= New price - Current Cost. Report can show last 7 documents and i should choose item code.
Can u help me?
Greetings from Poland

Hi,
Please check This
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From OMRV A INNER JOIN MRV1 B ON A.DocEntry=B.DocEntry
Where (B.ItemCode='[%3]' or '[%3]'='') Having (B.Price-isnull(B.RActPrice,'0'))='0'
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Nithi

Inventory Valuation by FIFO method.

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