Skip to Content
avatar image
Former Member

FIFO Valuation within MM (without WM)

Hello SAP-Experts,

I want to ask you how to customize the system with t.c. spro and how to setup material master

to establish the FIFO valuation for some specific materials (e.g. for one or more material type(s)) without any WM functionalities.

What I read in this forums were the following, but I miss a thin red line or rather a guide, and I miss complete information on this:

1. Batch Management has to be enabled in customizing and material master.

=> customizing: logistics general - batch management - ???

=> material master: set indicator for batch management to active (is that all?)

... and how to make sure that when using MIGO for goods movement, the batches will be found automatically without inputing anything manually?

2. Classification has to be enabled for those material types which do need the FIFO. A class must be assigned which includes characteristics (e.g. shelf life expiration date, sth. else?)

3. Condition records have to be maintained (why, which?)

4. Sorting rules have to be defined for FIFO (where, how?)

5. Then there are also LIFO/FIFO settings within SPRO-MM-Valuationetc.-Balance Sheet Valuation Procecdure-Configure LIFO/FIFO Methods.

Has this also to be used? Why, why not?

6. For what is then the indicator in material master, Accounting view 2: "LIFO/FIFO relevant" - only for cost balance sheet?

What I need is something like a guide showing the steps which have to be done.

Then an example booking for FIFO in the system should be done as follows:

01.01.2000: GR of material A: 2 pieces a 10 EUR = 20 EUR in sum

05.01.2000: GR of material A: 2 pieces a 15 EUR = 30 EUR in sum

10.01.2000: GI of material A: 3 pieces (2x10 + 1x15) = 35 EUR in sum, 15 EUR still on stock

Thank you in advance for your help!


Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • avatar image
    Former Member
    Sep 04, 2008 at 12:51 PM


    I am also concentrating on this and 2,3 days back posted a question regarding FIFO valution without any answers.

    Basing on the study, what I understood is FIFO VALUATION and FIFO picking is two different configurations to be done.

    FIFO valuation is only relevant for Balance sheet valuation of material.

    FIFO picking used for inventory management.

    For FIFO balance sheet valaution :

    1. Activate balance sheet valuation (Trans: OMWE) - as LIFO not relevant, FIFO active.

    2. Defined LIFO/FIFO valuation levels (Trans: OMWL) - set as Plant (valuationa rea).

    3. Configured FIFO Valuation areas for year 2008.

    4. Define LIFO/FIFO method (Trans: OMWP) - as CUR - current.

    5. No changes made to movements relevant to FIFO (Trans: OMW4) no changes

    6. Selection of Material to FIFO (Trans: MRF4), in this getting error

    Selected material, entered plant and selected SET indicator executing. The system giving message as 'VALUATION AREA NOT DEFINED FOR FIFO' (M8885). Here i stopped and working on it. Looking like something related FI/CO configuration required.

    For FIFO inventory picking:

    You need to have a bacthmanagement activate

    Step - 1 Create Characteristics

    ZLASTGRDATE - Date of last goods receipt

    Transaction code CT04

    Step - 2 Create Characteristics

    ZBATCH - Batch Number

    Transaction code CT04

    Step - 3 Create a class MRO_BATCH_FIFO_CLS

    Transaction code CL02

    Step - 4 Add Characteristics ZLASTGRDATE



    Step - 5 Create a Condition Record Batch search Strategy

    Step - 6 Select Plant and Material Key combination

    - Enter the Material code

    -Select selection Criteria save and come back

    - Select Sort rule as Ascending and Enter the validity rule

    Step - 7 Assign this class to the material in Classification view

    Step 8

    Create the PO for the Material and post the Goods Receipts MIGO.

    System will assign a batch number and also updates the Batch number and

    GR Date. Post thre four GRs with different dates. first with

    the current date , then some with the old dates. Sytem will captures the


    number and the Gr date. This is only to study how the system

    proposes the GR dates

    Step - 9 Post a Goods Issue for the material, and when you enter batchnumber

    enter * and press enter. then you will observe how system propses the

    quantities based on the batches and GR dates in FIFO order

    This I didnt try, coz our first preference is FIFO Valuation in Balance sheet.

    If you have any information regarding this point, please share with me for better results.


    Syed Hussain.

    Add comment
    10|10000 characters needed characters exceeded