Folks,
I am currently working on a project in the commodites trading and processing (coffee, cocoa, corns, cotton, etc.) industry. My client is engaged in direct trading (i.e. buy and sell) commodity and also sells processed commodities.
I have a requirement in that the client would like to have processed commodities valuated on FIFO basis. Processed commodity here means that the client will purchase commodity from the crop producer (farmer) and process the commodity and sell to their customer for further downstream process (e.g. making chocolate, corn oil, etc.). We will use process order (SAP-PP/PI) to convert the raw commodity to processed commodity.
I would like to know if it is possible in SAP if we could have the processed commodity valuated at FIFO basis. If so, how to set this up.
From product costing perspective, the processed commodity will be valuated at standard price. The raw commodity will be valuated on FIFO basis. Even if I use Material Ledger to roll up the price differences, this does not mean that the finished goods will be automatically valuated on FIFO basis. What ML will do is spread the price difference to consumption and ending inventory on quantity basis.
Points will be rewarded for helpful and relevant answers.
Many thanks,
Teck