Accounting 2 Tab LIFO FIFO Relevant

What is the use of the field in Material Master, Accounting 2 tab, LIFO/FIFO relevant? 

Does this mean if material is Batch managed and when issuing the material, system will suggest which batch based on FIFO concept? 
 

LIFO means LAST IN FIRST OUT 

FIFO means FIRST IN FIRST OUT 

LIFO/FIFO-relevant Determines whether the material or the movement type is relevant to LIFO and FIFO valuation. 

Determines whether the material or the movement type is relevant to LIFO and FIFO valuation which that means: 
 

In Inventory Management (MM-IM) 

Classification key indicating the type of material movement (for example, goods receipt, goods issue, physical stock transfer etc...). 

The movement type enables the system to find predefined posting rules determining how the accounts of the financial accounting system (stock and 

consumption accounts) are to be posted and how the stock fields in the material master record are to be updated.
 

In Invoice Verification (MM-IV) 

Valuation of a company's assets for balance sheet purposes using the LIFO procedure. 
 

Within the framework of LIFO and FIFO valuation, following the new features: 

1. The results of LIFO valuation can be adopted as material prices via batch input. The results of LIFO and FIFO valuation can also be adopted as material prices via direct update or be transferred to the material ledger if this is active. 

2. Lowest value comparison for LIFO valuation - the following configuration options have been enhanced: 

a) Interpretation of valuation area prices for LIFO valuation at company code level; 

b) Interpretation of single material prices for LIFO valuation in pools; 

c) Lowest value comparison of individual layers or layer total (different international requirements). 

3. You can now load the data from LIFO / FIFO valuation directly from a workstation into the R/3 System as a workstation upload. The interface has been revised. 

4. Using a new program, you can check and, if required, match quantities and units of measure of existing layers. 

5. A new program enables you to reassign material layers to a different material number or valuation area. 

6. A user exit has been developed for assigning pool numbers to materials automatically. The previous solution (standard include, to modify) is no longer supported. 

LIFO/FIFO relevant only means that the movements for this material (if the respective movement types have been set up as relevant) will be stored in the LIFO tables. This is just a valuation topic and has, as far as I know, nothing to do with the real order in which you issue your stock. The LIFO / FIFO-reports will tell you what the stock value based on LIFO or FIFO is, but this has nothing to do with the actual order of goods movements. 

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