Refer below points regarding FIFO Valuations..
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.
Hope it clears.
It is a one of the Stock Removal Strategies.
During stock removal, While cretaing the TO the system searches for a Storage type. Storage will decide the Quants in Bins for any kind of Removal of stock. Stock removal Strategy can be applied to any storage Type for the bun search
With FIFO, the System propses the Qldest Quant to be removed first
Note:- If FIFO is used , the oldest Quant GR date is used during the Addition of Stock while Putaway.