What is periodic FIFO cost in SAP (SRD-FIN-INV - FIN-Inventory)?

SAP Term: periodic FIFO cost

• Component: SRD-FIN-INV

• Component Name: FIN-Inventory

• Description: A cost type that enables valuation of material inventories in the balance sheet using the FIFO First In, First Out method.

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• Key Concepts: 
  Periodic FIFO cost is a method of inventory valuation used in SAP. It is based on the First-In-First-Out (FIFO) principle, which states that the first items purchased are the first items sold. This method is used to calculate the cost of goods sold (COGS) and the value of inventory on hand. 
  
  How to use it: 
  In SAP, periodic FIFO cost is used in the SRD-FIN-INV FIN-Inventory Accounting component. This component allows users to track and manage inventory costs and values. The periodic FIFO cost method is used to calculate the cost of goods sold and the value of inventory on hand. The system will automatically calculate the cost of goods sold based on the FIFO principle. 
  
  Tips & Tricks: 
  When using periodic FIFO cost in SAP, it is important to ensure that all inventory transactions are accurately recorded. This will ensure that the system calculates accurate costs and values for inventory items. Additionally, it is important to regularly review and update inventory records to ensure accuracy. 
  
  Related Information: 
  For more information about periodic FIFO cost in SAP, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SRD_FIN_INV/latest/en-US. Additionally, there are many online resources available that provide detailed information about this method of inventory valuation.