Definition

Movements relevant to FIFO are movements that are taken into account during FIFO valuation.

Use

The system calculates the FIFO value based on the quantities and values of goods receipts. However, there is no point in including all goods receipts for a particular material in FIFO valuation, as a stock transfer from one material to another, for example, is not necessarily valuated at market prices and therefore should not be relevant for FIFO valuation.

This is why your system administrator has to flag all goods movement types that should be included in FIFO valuation in Customizing for Material Valuation.

Integration

These settings are valid for both FIFO and LIFO valuation.