FIFO across inventory organizations
The allocation of inventory by FIFO works well within the inventory organization based on the ORIG_DATE_RECEIVED from MTL_ONHAND_QUANTITIES. But when the material is transferred from one org to another, the ORIG_DATE_RECEIVED resets to the transaction date. Thus in the new org, the allocation does not happen by true FIFO.
e.g. In the new org, if following are the receiving transactions:
Receipt Date Source Original Receipt Date in the first org
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01-Jun-2012 Supplier
10-Jun-2012 Supplier
10-Jun-2012 Internal Org 15-May-2012
15-Jun-2012 Internal Org 31-May-2012
Thus allocation of material at Pick Release first allocates the shipment received on 01-Jun-2012(Supplier) followed by 10-Jun-2012(Supplier). Then it allocates 10-Jun-2012(Internal Org) followed by 15-Jun-2012(Internal Org).