SAP MM - DEMO Automatic Batch Determination FIFO / FEFO
Today, I would like to post a video that clearly demonstrates how SAP behaves, or rather as the Automatic Batch Determination works, using the FIFO mode or FEFO.
But first of all, for those who are not familiar with the FIFO or FEFO, need to understand that they are modalities, or ways to administer the stock of a company.
FIFO means First In First Out, meaning the first batch of a material that has been bought and stored, will be the first to leave the stock, either by consumption or resale.
In this scenario, the first batches that entered the stock are considered at the time of consumption.
FEFO means: First Expires First Out. The way to deal with is very similar to the previous one, however it prioritizes the consumption or low material that will have your deadlines closer to their maturity date.
Both strategies are very interesting, even if they are automatic. The proposed system, depending on the strategy adopted by the Company which should be consumed Lot.
Just the fact that the user does not have to go looking for the balance in MMBE transaction code the stock available by copying and pasting the name of the batch to make their consumption already represents great performance gain. Better yet if this automation is complemented with a "pinch" of discretion that would be really the case the most appropriate choice of the lot to be consumed.
Best of all, this implementation and system behavior are based on standard SAP settings, ie, depending on the scenario of the Company, it is not necessary complex developments.