Moving Average price, Std price and FIFO

[Former Member]

Hi folks,

It seems our client wants to use FIFO valuation for its items rather than Moving Average because FIFO gives them an actual price for their Finished Goods (the client does not have any manufacturing).

I beleive the question the client wants answered is: <b>Can they can use the FIFO valuation within COPA-AB (account based) instead of costing based</b>.

The client manager seems extremely sure that this can be done in COPA. Can it be done? If so, how would we go about it? My understanding is that COPA only captures the cost with the revenue. It captures the cost the moment you ship a product.

I think CO-PC handles this, however I think you need PP implemented as well and the client is not implementing PP at this time. I could also be totally wrong about all of this.

Hopefully this all makes sense. Unfortunately I cannot upload an example of what I mean.

Appreciate any thoughts on this.

Thanks!

[Former Member · Accepted solution]

You are absolutely correct.

COPA is used for reporting cost & revenues for internal use. It has nothing do with inventory valuation.

It is product costing which is used for material valuation in manufacturing scenario. As you mentioned, that products are not manufactured. there is no need to implement PP & product costing.

In SAP material is valuated either at moving average price or standard price a sper price control in material master. However, there are functionality in SAP where materials can be re valuated at period end for legal reporting. Explore the functionality in MM -> balance sheet valuation (do not remember the exact path). In this materials can be re-valuated as per various principles or can be done via user exits.

Hope it helps.

[Former Member]

Thanks for your reply. I really appreciate it. Does anyone else have any thoughts on this issue?