What is LIFO procedure in SAP MM-IV - Invoice Verification?

SAP Term: LIFO procedure

• Component: MM-IV

• Component Name: Invoice Verification

• Description: A stock valuation procedure for balance sheet purposes. LIFO stands for "last in, first out". With the LIFO procedure, stocks are valuated separately for an accounting period. As a rule, the accounting period is a fiscal year or a posting period. If the stock level at the end of an accounting period is higher than at the start of that period, a separate valuation layer is created for the difference. If the stock level at the end of the accounting period is lower than at the start of the period, existing layers are partly or completely dissolved, starting with the last layer to be created.

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• Key Concepts: 
  The LIFO (Last In First Out) procedure is a method of invoice verification used in SAP's Materials Management (MM) module. It is used to ensure that the most recent invoices are processed first, and that the oldest invoices are processed last. This helps to ensure that the most up-to-date information is used when verifying invoices.
  
  How to use it: 
  The LIFO procedure is used in SAP's Materials Management (MM) module for invoice verification. When an invoice is received, it is entered into the system and assigned a unique number. The system then checks to see if the invoice has already been processed. If it has not, the system will process the invoice according to the LIFO procedure. This means that the most recent invoices will be processed first, and the oldest invoices will be processed last. 
  
  Tips & Tricks: 
  When using the LIFO procedure for invoice verification, it is important to remember that the most recent invoices should be processed first. This ensures that the most up-to-date information is used when verifying invoices. Additionally, it is important to ensure that all invoices are entered into the system correctly and assigned a unique number before they are processed. 
  
  Related Information: 
  The LIFO procedure is just one of many methods of invoice verification used in SAP's Materials Management (MM) module. Other methods include FIFO (First In First Out), Average Price, and Standard Price. Additionally, there are several other modules within SAP that use invoice verification, such as Financial Accounting (FI) and Controlling (CO).