What is LIFO/FIFO indicator in SAP MM-IV - Invoice Verification?

SAP Term: LIFO/FIFO indicator

• Component: MM-IV

• Component Name: Invoice Verification

• Description: A field in a material master record indicating whether the material is LIFO- or FIFO-relevant.

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• Key Concepts: 
  The LIFO/FIFO indicator is a feature of the SAP MM-IV Invoice Verification component. It is used to determine the order in which goods are received and invoiced. The indicator can be set to either “LIFO” (Last In First Out) or “FIFO” (First In First Out). When set to LIFO, the last goods received are invoiced first, while when set to FIFO, the first goods received are invoiced first. 
  
  How to use it: 
  The LIFO/FIFO indicator can be set in the SAP MM-IV Invoice Verification component. To do this, go to the “Settings” tab and select “LIFO” or “FIFO” from the drop-down menu. Once selected, this setting will be applied to all goods received and invoiced through the component. 
  
  Tips & Tricks: 
  It is important to consider the implications of setting the LIFO/FIFO indicator before doing so. Depending on the type of goods being received and invoiced, one setting may be more beneficial than another. For example, if goods are perishable, it may be more beneficial to set the indicator to LIFO so that the oldest goods are invoiced first. 
  
  Related Information: 
  For more information on using the LIFO/FIFO indicator in SAP MM-IV Invoice Verification, please refer to SAP Help documentation or contact your local SAP support team.