[sap-log-mm] Material movement - Inventory valuation based on FIFO

Posted by Sap Land Wednesday 15 June 2011 17:12

Posted by Hasbullah_Bachik
on Jun 15 at 8:16 PM

I would like to know on the inventory valuation from moving average price (MAP)/ average the inventory value to First In First Out (FIFO) basis.

FIFO basis is where assumption made that inventory being sold is based on first come first serve basis i.e.
For example you have 1 pc of pen valued at RM 1 and then you buy another pen valued at RM 1.50, your total inventory value would be RM 2.50.

In FIFO basis, if you sold 1 pc of pen then the product cost will be RM 1.00 (i.e. purchase price) as it deemed that the first pen make a way first.
However, in MAP basis, if you sold 1 pc of pen, the product cost would be RM 1.25 as it average cost of both pen.

I have tried using the FIFO rules but it will only take the purchase price if the issuance/sales were done within the same posting period as the GR. If I were to make a GI in the current period, it will not take the purchase price but instead it will be MAP. And then there will be concern if the stocks were available across periods.

Really appreciate any ideas that you may be it standard customizing or enhancements required.

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