FIFO Method Material Revaluation

[sanjay_ram]

Hi,

I want to confirm the following points please :-

1) Does the SAP FIFO revaluation method using MRN9 revalue my consumption accounts so that my COPA COGS will be recalculated according to FIFO price?

2) If the above is not possible then what other alternatives are available to revalue the consumption posted so far using FIFO price?

[Former Member]

Hi..

I know that FIFO valuation in SAP is a method that enables you to valuate stocks of a material as realistically as possible, not consumption.

I think that your requirement is not solved using the FIFO valuation. 

Refer to SAP help portal site : FIFO Valuation - Balance Sheet Valuation (MM-IM-VP) - SAP Library

[sanjay_ram]

Hi Choi,

How are you? We have discussed before.

Yes i know SAP FIFO will not re-valuate the consumption part, so does this mean we cannot use SAP if our business model requires FIFO valuation for our material movements?

[Former Member]

I think that you don’t use SAP’s FIFO method for material movement.

[sanjay_ram]

What do you mean by that?

Can i use FIFO for material movements in SAP?

[Former Member]

I think that you cannot use it.

[sanjay_ram]

Hi Choi,

Apparently there is something called batch valuation in MM. Can we not use that to valuate individual batches for goods receipts and issues based on FIFO method?

[Former Member]

Hi..

Although you use individual batches, it is impossible to re-valuate consumption using FIFO method.

Please, Refer to help portal site:FIFO Value Determination - Balance Sheet Valuation (MM-IM-VP) - SAP Library

You use the FIFO method to define the stock that is to be valuated again, for example, the closing stock from the previous month or previous year. Beginning with the appropriate period, the system adds up all the quantities of goods received for each period until the closing stock is reached. Then the system adds up the value of the goods received. The last value to be added is determined in relation to the last quantity added.