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

SAP Term: quantity LIFO procedure

• Component: MM-IV

• Component Name: Invoice Verification

• Description: An approach within the LIFO valuation procedure for valuating material stocks. LIFO stands for "last in, first out". In the quantity LIFO valuation procedure, materials are valuated periodically on the basis of actual quantities.

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• Key Concepts: 
  The quantity LIFO procedure is a feature of SAP's Materials Management (MM) Invoice Verification component. It stands for Last In First Out, and it is a method of inventory management that prioritizes the use of the most recently acquired items first. This procedure is used to ensure that the oldest items in stock are used up before newer items are used. 
  
  How to Use It: 
  The quantity LIFO procedure can be enabled in the SAP system by going to the MM-IV Invoice Verification component and selecting the “Enable Quantity LIFO” option. Once enabled, the system will automatically prioritize the use of the most recently acquired items first. 
  
  Tips & Tricks: 
  When using the quantity LIFO procedure, it is important to keep track of when items were acquired and how much stock is available. This will help ensure that the oldest items are used up before newer items are used. Additionally, it is important to regularly review inventory levels to ensure that there is enough stock available to meet customer demand. 
  
  Related Information: 
  The quantity LIFO procedure is just one of many inventory management methods available in SAP's Materials Management (MM) Invoice Verification component. Other methods include FIFO (First In First Out), FEFO (First Expired First Out), and ABC Analysis (Activity-Based Costing).