Determination of the FIFO Valuation Level (SAP Library - Balance Sheet Valuation (MM-IM-VP))

Determination of the FIFO Valuation Level

Use

Function	Settings in Customizing for Valuation and Account Assignment
Define the level at which FIFO valuation is to be carried out.	Balance Sheet Valuation Procedures ® Configure LIFO/FIFO Methods ® General Information ® Define LIFO/FIFO Valuation Levels

If you carry out Material Valuation in your company at plant level (valuation area = plant), you have two options:

FIFO valuation at company code level

You valuate all the stocks of a particular material in all of the valuation areas of the company code together (joint valuation). This means that there is only one FIFO price for a material in all of the valuation areas.

FIFO valuation at valuation area level

You valuate all the stocks of a particular material separately in the individual valuation areas of the company code. This means that there can be different FIFO prices for a material in the individual valuation areas of the same company code.

If you carry out Material Valuation in your company at company code level (valuation area = company code), FIFO valuation is also carried out at company code level.

Note

If you have flagged materials as relevant for FIFO, you can no longer change the settings for the FIFO valuation level.