FIFO Valuation

[Former Member]

Hi Friends,

We have configured the FIFO inventory valuation and performed business process activities as mentioned below but Moving Average Price (MAP) is being updated in Tax Price 1 of Accounting View-2 tab instead of FIFO Value.

Configuration:

1. Activate/Deactivate LIFO/FIFO Valuation
2. Define LIFO/FIFO Valuation Level
3. Define LIFO/FIFO relevant movement types (Selected all movement types)
4. Define LIFO/FIFO methods
5. Define FIFO Valuation Areas

Business Process:

1. MRF4 – To set the FIFO Option in Material Master
2. MRF3 – To extract all the GR documents
3. MRF1 – Valuate the Goods receipts in order to arrive with total stock quantity and its value
4. MRN9 – to post the accounting entry with diff. amount (FIFO and MAP).

In MRF1 system shows the closing stock at MAP, no impact of FIFO and MAP is updated in Tax Price 1 of Accounting View 2 Tab.

In MRN9 system does not generate accounting entry for diff. amount.

Please help us on it to resolve, and is there any configuration step and business process activity missed out.

Thanks in Advance.

Regards,

Venkat

[rajneesh_saxena]

Hi All

I am interested in this thread. Client used to ask for this valuation but we always struggle for this. I would like to have views of Sir, Former Member, Sir on the issue.

Rajneesh

[former_member198650]

Hi Venkat,

When you click on material master price check box, then system will show change material prices option. You have to click on it, then either you have to select direct update or generate batch input option, then only it posts accounting document.

Regards,

Mukthar

[Former Member]

Hi Mukthar,

Thanks for quick reply.

I have selected direct update check box and specified date as well but accounting entry is not generated rather moving average price is updated in tax price 1.

Regards,

Venkat

[former_member198650]

Hi Venkat,

Do not select any check boxes in update prices, then only it generates accounting document.

Regards,

Mukthar

[Former Member]

Hi,

I tried several times by selecting all options but I could not get the result.

Can any one help me to resolve this issue.

Regards,

Venkat

[former_member198650]

Hi Venkat,

Do not select any check boxes as shown below screen shot.

Regards,

Mukthar

[Former Member]

Hi,

Good Morning.

After your reply yesterday I have run one more cycle without selecting these check boxes but did not generate any accounting document.

Can you please provide me the process steps,if possible, it would be more help to solve the issue.

Regards,

Venkat

[former_member198650]

Hi Venkat,

I have attached step by step process, please check it.

Step by step process is:

1. MRF4

2. MRF3

3. MRF1

4. Moving avg price of the material before and after the valuation and its accounting entry.

Regards,

Mukthar

[Former Member]

Hi Sir,

I followed your steps even system is not revaluated and generated any accounting document.

Please find below screen shots and suggest me.

Regards,

Venkat

[former_member198650]

Hi Venkat,

In your case there is no difference. Due to this it is not generating any document. If you check my attachment, there is difference and it has generated accounting document. Try to create GRs with different rates and do valuation.

Regards,

Mukthar

[Former Member]

Hi Sir,

Thanks for Quick reply.

GR 1: 100 Qty * Rs.100 = 10000 (03.06.2015)

GR 2: 100 Qty * Rs.200 = 20000  (03.06.2015)

Goods Issue 150 Qty * 150 (MAP) = Rs. 22500  (03.06.2015)

Now, my closing stock, would be 50qty * 150 = Rs. 7500 according to MAP.

According FIFO valuation it would be 50qty * 200 = 10000 (with Diff amount revaluation gain/loss, if entry generated)

But system is not being valuated with FIFO and no change in MAP after MRF1.

Please suggest and correct me, if I am wrong.

Regards,

Venkat

[former_member198650]

Hi Venkat,

Yes, you are right. But you do not select 201 movement type for FIFO valuation and do valuation now.

Regards,

Mukthar

[Former Member]

Hi Sir,

I have deselected Mov. type 201 and run the entire cycle by creating new material but there is no result.

Could you please share the document on this scenario, if you have any or take my system control.

I have been working on it for last one week but I could not get the expected result.

Please help me on it.

Regards,

Venkat

.

[former_member198650]

Hi Venkat,

What is the method you are using in MRF3 & MRF1?

Regards,

Mukthar

[Former Member]

Hi Sir,

Please find below screen for FIFO method, what I am using.

Regards,

Venkat

[former_member198650]

Hi,

You have to take the FIFO method which has selected "Single Receipts" check box with the same parameters. So select that method, if not copy it and create a new method and select it while MRF3 & MRF1.

Regards,

Mukthar

[former_member198650]

Hi Venkat,

Any update?

Regards,

Mukthar

[Former Member]

Hi Sir,

Sorry for delayed reply..

Can you please explain what type of movement types need to be selected.

What is the impact If I select single receipt instead of periodic receipts.

Regards,

Venkat

[former_member198650]

Hi Venkat,

You have to select only goods receipts movement types and if you select periodic receipts system wont do revaluation.

Regards,

Mukthar

[Former Member]

Hi Sir,

Thank you for gave the inputs.

Closing the thread.

Regards,

Venkat

[Former Member]

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