FIFO Valuation with Material Ledger !

[Former Member]

Hi,

How do we accomplish FIFO Valuation using Material Ledger ?

We have activated the Material Ledger, with Single - Level Determination; Standard Price S. On execution of Single-Level Price Determination, we get the Periodic Unit Price -- which is the Weighted Average Price for the Receipts for the period involved.

I came across SAP Forums, which claim that Material Ledger is the FIFO Valuation on real-time basis. However, this doesn't seem to be true. The Goods Issued are assigned the Periodic Unit Price (calculated above -- i.e the Weighted Average Price ).

In addition, we have Configured the FIFO Balance Sheet Valuation Procedure, through the MM menu. The FIFO Value for the Material is giving weird results. Adding the total Inventory for all the Receipts till date and over-riding the period selection for Single Receipts. For monthly receipts, the system just gives the Weighted Average Price again.

The Business is expecting the FIFO valution for the Inventory Balance on Monthly Basis. ( We are using Material Ledger, so that we can roll-up this FIFO Valuation of the Raw Material ito Gross up into the Finished Product

-- Thanks

[Former Member]

Hi Kenny ,

BASIC STEPS THAT CAN BE FOLLOWED FOR ENDING INVENTORY VALUATION :

Ending Inventory is valued as per FIFO calculated through following steps:

Run the price calculation (Txn: KSII) u2013 check that all auxiliary Cost centers are zero

Run Txn:MRF3 (summarization of documents for the FIFO calculation.)

Run MRF1 (calculation of FIFO)

Check if the FIFO calc. is correct via MR35

After ML run the ending inventory value should be equal to the value in MR35 and so balance amount not yet loaded to ending inventory through FIFO valuation is posted to consumption

Exception: If total receipts for a period is less than ending inventory quantity .In this case the EI is valued at weighted average

Please check wether the steps have been properly followed and the execption doesnot exists..

Also, hope your Price Determination is "3" and price control is "S" in Material Master..

Regards

Sarada

[Former Member]

Hi Sarada,

Non ML FIFO calculation transactions MRF3,MRF1 calculate FIFO in company code currency only.

We also need FIFO in group currency for materials defined with price determination "3"? Is there a way to accomplish the same in that currency?

I thought of adding another line per material to table CKMLPR_EB with manual calculation of FIFO price in group currency through ABAP. Is there a simpler way you know of?

Thanks

David