What is lowest value comparison in SAP MM - Materials Management?

SAP Term: lowest value comparison

• Component: MM

• Component Name: Materials Management

• Description: A procedure in which the preliminary results of LIFO or FIFO valuation gross value are compared with a value obtained using the lowest value determination procedure. LIFO stands for "last in, first out", FIFO for "first in, first out". The lowest of the two valuations is taken as the net LIFO or FIFO value.

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• Key Concepts: 
  Lowest Value Comparison is a feature in SAP Materials Management (MM) that allows users to compare the prices of different vendors for the same material. This comparison helps users to identify the vendor with the lowest price and select them for purchase. 
  
  How to use it: 
  To use the Lowest Value Comparison feature, users must first enter the material number and quantity they wish to purchase. The system will then generate a list of vendors who can supply the material, along with their respective prices. Users can then compare the prices and select the vendor with the lowest price. 
  
  Tips & Tricks: 
  When using Lowest Value Comparison, it is important to consider other factors such as delivery time and quality of materials in addition to price. This will help ensure that users are selecting the best vendor for their needs. 
  
  Related Information: 
  For more information on Lowest Value Comparison, please refer to SAP Help documentation at https://help.sap.com/viewer/product/SAP_ERP_MM/6.0/en-US.