What is FIFO cost determination run in SAP SRD-FIN-INV - FIN-Inventory?

SAP Term: FIFO cost determination run

• Component: SRD-FIN-INV

• Component Name: FIN-Inventory

• Description: A periodic run that calculates the FIFO cost for selected materials.

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• Key Concepts: 
  FIFO cost determination run is a process in SAP that allows users to determine the cost of goods sold (COGS) based on the first-in, first-out (FIFO) method. This process is used in inventory accounting and is part of the SRD-FIN-INV FIN-Inventory Accounting component. The FIFO cost determination run calculates the cost of goods sold based on the oldest inventory items first. 
  
  How to use it: 
  To use the FIFO cost determination run, users must first set up the FIFO valuation method in the system. This can be done by going to the IMG menu and selecting Financial Accounting > Financial Accounting Global Settings > Valuation > Valuation Methods > Define Valuation Methods. Once this is done, users can then go to Logistics > Materials Management > Inventory Management > Valuation > Cost Determination > FIFO Cost Determination Run. Here, users can enter the selection criteria for the run and execute it. 
  
  Tips & Tricks: 
  When running a FIFO cost determination run, it is important to ensure that all inventory items are correctly valued. This can be done by checking the stock overview report before running the FIFO cost determination run. Additionally, it is important to ensure that all inventory items have been correctly posted in order for the FIFO cost determination run to be accurate. 
  
  Related Information: 
  For more information on how to use the FIFO cost determination run, please refer to SAP Help Portal article “How to Use FIFO Cost Determination Run” (https://help.sap.com/viewer/f9f3d7a8b2e14c6c9f3d7a8b2e14c6c9/1909/en-US/f9f3d7a8b2e14c6c9f3d7a8b2e14c6c9.html).