FIFO using batch mgmt

[Former Member]

Dear All,

If I used batch mgmt using sort rule how it will be helpful for FIFO valuation.

In MRF4 i am getting one report saying net value ,book value & difference.

How that will achieve purpose of FIFO.

Please clear me the above things.

Thanks in advance.

Regards

Gitesh

[Former Member · Accepted solution]

Hi,

If you want to use FIFO with batch management you obviously need to setup batch management in customizing (explained many times on this forum). You further need to setup selection classes and sorting rule. Your selection class will select all batches matching your selection criteria; i.e. shelf life >100 days. The sort rule will allow you to sort the batches from oldest to youngest will assign the oldest to your delivery.

You need to activate shelf life check, you also need to assign a class whcih has the shelf life characteristics and you need to enter thje production date during GR. You also need to enter the shelf life parameters in material master.

MdZ

[Former Member · Accepted solution]

Dear Mdz,

I want to know about FIFO valuation not about batch mgmt.

Pls tell me how FIFO purpose will be achieved in SAP? or in short u explain me abt through process of FIFO valuation.

Regards

Gitesh

[JL23 · Accepted solution]

batch determination using FIFO strategy has nothing to do with FIFO valuation.

FIFO (first in, first out) stands for the assumption that the first stocks of a material to be received are the first to be consumed. This may not necessarily fit with the real good movements.

http://help.sap.com/saphelp_erp2005/helpdata/en/47/6106df49f011d1894c0000e829fbbd/frameset.htm

[Former Member · Accepted solution]

Thanks Jurgen Sir,

for ur as usual fast reply.

Just tell me whether system will take value for (ending) balance inventory after sales, as per calculation expected from FIFO method in actual scenario.

Where is that comparision of COGS to raw material value in case there is some material (ending inventory) at the end of the financial year?

This compaision is to calculate the profit.

If I am right,where is these settings in SAP?

Regards

Gitesh