I have read help file in SAP for FIFO implementation...I have few doubts on what value the issue will happen?? will MAP change when we do FIFO valuation??
Can anybody share me any example to show difference between MAP and FIFO valuation??
i need to be clear as i need to go to colect data at client place which are now running business on FIFO basis.
The values are kept seperate. MAP is used for Material movements, while FiFO is purely for FI Valuation purposes.
GR 01/07 10 pcs @ 10 MAP = 10
GR 02/07 10 pcs @ 12 MAP = 11
Issue 03/07 5 pcs @ 11 (Current MAP Value).
No further movements
Valuation with MAP 15 @ 11 = 165
FiFo 10@12 + 5@ 10 = 170
You do not choose between FIFO and MAP, you use both.
The idea is that all movements will use and update the MAP but then you periodically run the FIFO program to recalculate the value of your stock based on the FIFO principles. This then stores the new value in a field separate from the MAP and so you are effectively able to use both.
The ONLY way to use FIFO INSTEAD of MAP is to use batch control along with split valuation, so that every receipt and issue is monitored via a batch number and valued via split valuation "valuation types".
But you don't need to do this, just use the existsing SAP functions to recalculate the value based on FIFO and use MAP for the actual valuation of each movement.