Definition of a FIFO Method

Use

In the system, FIFO valuation is based on a set of parameters, which are described as the FIFO method in all relevant transactions. The method is a six-character alphanumeric field that you can define in Customizing or from any initial screen during processing in the application. Some attributes of a FIFO method can be freely combined, while others may only be used in certain combinations. These combinations are referred to as models . Model 01 is currently the only one defined for FIFO valuation.

The part of a FIFO method that you can freely define consists of the following aspects:

  • Is the value to be determined on the basis of receipts aggregated on a monthly basis or on the basis of single receipts?

    The differences are explained in an example . If you are determining values on the basis of single receipts, you must generate a document extract prior to FIFO valuation.

  • Which stock do you want to valuate using the FIFO method? You have the following options:

    GJE – End of the last fiscal year

    VVM – End of the posting period before last

    VOM – End of the last posting period

    CUR – Present