We are planning to maintain inventory valuation on FIFO basis.
As per process steps we have to perform following steps to determine FIFO per unit cost.
As per help document - Cost Types for Inventory Valuation
Cost types enable you to assign different costs to a material for different purposes.
The following cost types for materials are available:
Values inventories and goods movements.
Can be calculated in material cost estimates or maintained manually. This cost type is for informational purposes only.
Intended for internal planning of anticipated future material costs. This cost type is for informational purposes only.
Book value is based on legal requirements and may be calculated externally by applying a cost flow assumption such as LIFO. This cost type is for informational purposes only.
I would like to understand the meaning of "cost type is for informational purposes only".
Also, i like to know where i can locate the change of unit cost of material and impact on financial statements.