FIFO Valuation with Material Ledger !
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