What is FIFO reevaluation in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: FIFO reevaluation

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: The assignment of assets managed in separate nonregulated portfolios to one consolidated portfolio, and the reevaluation of the assets in the consolidated portfolio using the first in first out FIFO consumption procedure. The consolidated portfolio is used for tax accounting only and exists in parallel to the nonregulated portfolios, which are used for financial accounting.

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• Key Concepts: 
  FIFO reevaluation is a feature of the Transaction Manager component of SAP's Financial Supply Chain Management (FSCM) module. It allows users to reevaluate the FIFO (First In, First Out) method of inventory valuation. This method is based on the assumption that the oldest items in inventory are sold first, and that the cost of goods sold is based on the cost of the oldest items in inventory. 
  
  How to use it: 
  The FIFO reevaluation feature can be used to adjust the cost of goods sold and inventory values when the FIFO method is used. It can be used to adjust for changes in inventory costs due to price fluctuations or other factors. The feature can also be used to adjust for changes in inventory quantities due to sales or other transactions. 
  
  Tips & Tricks: 
  When using the FIFO reevaluation feature, it is important to ensure that all relevant data is up-to-date and accurate. This includes ensuring that all inventory costs and quantities are correct before running the reevaluation process. Additionally, it is important to ensure that all relevant transactions are accounted for when running the reevaluation process. 
  
  Related Information: 
  The FIFO reevaluation feature is part of SAP's Financial Supply Chain Management (FSCM) module. Other features of this module include Accounts Receivable Management, Credit Management, and Cash Management. Additionally, SAP offers a variety of other modules and tools that can be used to manage financial processes and operations.