Free-of-Charge (FOC) P/O

Hi,
would like to check, whether for all FOC P/O, will the accou

Hi
FOC items as far as PO is concerned will not have any accounting documents generated during GR that is no value postings during GR.
But for sales yu have the price of the material in master and also you would most likely add other expenses required for the sale. So you will have accounting documents once you carryu out the sales process and do a PGI.
Regards
Edited by: samuel mendis on Jun 8, 2009 10:45 AM

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Free of Charge (FOC) items Should not be posted to Cost of sales

Hi all,
We are in ECC 6.
SD Requirement: In sales order, we create line items. Once DO is created , we post PGI. At this point
Cr Stock A/C 19000 Dr Cost of sales 45000. We do not Dr GL 45000 for FOC items. We want to use another GL for this.
How can I set up this?
Thanks in advance

Hi all, Tks for the solution. Issue is resolved now.
I have done following config to get the desired outcome.
Config Steps:
MM Config:
1.New mvt type 901 created by copying std mvt 601.
2.In account grouping account modifier VAX was replaced by ZAX for WA01 -2 -GBB & WA03 -2 -GBB
3.In OBYC Copy GBB-0001-VAX 3100 Old GL to GBB-0001-ZAX 3100 NewGL
SD Config
4.In VOV6 Maintain Sch line cat. Cretate Z2 by Copying CN   and change mvt type from 601 to 901
No separate item cat or delivery type is created .
Transaction Steps:
1. VA01:Create Sales order with Two line items one with item cat TAN and second with item cat TANN.
   For line item 2, Change Sch line cat to Z2
2. VL01N :Create delivery with std type LF > TO>Confirm-->PGI.
     Accounting entries, for first line item       Cr: Stock A/C Dr: cost of sales
                                     for second line item Cr: Stock A/c Dr: New GL
3.VF01: Billing doc created. Accounting entries Dr Trade Debtors Cr Sales Revenue

PO with FREE of charge position - goods receipt change the average price

Hi Experts,
in our SAP system we have a special situation concerning the PO with free of charge (FOC) items.
We set the flag "Free" in the PO position for all FOC items. When we book the good receipt for these FOC items SAP creates no accounting document and the average price is changing.
for example: 1 pce is on stock with the value 100; we receive 1 pce for FOC
new average price: (100 + 0) / (1 + 1) = 50
this is a big problem for us.
for us - the goods receipt for the FOC articles must be with the actual average price (table MBEW) similar to a return goods booking in the SD Module - movement type 653 !
this means for our example: 1 pce is on stock with the value 100; we receive 1 pce for FOC
new average price: (100 + 100 (acutal average price)) / (1 + 1) = 100
I read a lot of OSS notes and many entries in the forums and I think many other companies have the same problem.
is there any solution possibility to do that in this way?
thank you for your help
Peter Lechner

it is logical that the moving average price changes. if you dont want that, then you either have to have an extra material master for your free of charge stock, or you need to implement split valuation and can then have batches that are not valuated.
But if you have 10 on hand with a value of 20 $, then the moving average is 2$
if you then get another 10 free of charge, then you have 20 on hand with total value of 20$, which just means 20$ div by 20 quantity = 1 $ MAP.
if SAP would not change the MAP in that moment, then the goods receipt is valuated with the current MAP and the total value of your stock increases to 40. but this is then not a free of charge case.

Pricing: Special Free-Of-Charge processing for Portugal

Hello,
First I will explain a legal portuguese requirement regarding VAT in free-of-charge (FOC) items:
01 - If the internal value of an FOC item is < 50 EUR, there is no VAT determined.
02 - If the internal value of an FOC item >= 50 EUR, then VAT has to be determined.
Now the reason for this post:
03 - When VAT is determined it is NOT due by the customer, so it should not to be posted to A/R . The VAT determined is due by the company that offers the goods, so only a G/L posting is required for this VAT amount. This amount is a cost for the company.
To my knowlegde, conditions types of class D (Tax) are posted to A/R (like the standard MWST ). So if VAT is determined, I need a way to override this behaviour, by making the sum of the Net Amount + VAT equal to ZERO . So, if my VAT condition type determines value X, I need a condition type of value -X:
ZWS3 (VAT for FOC Items) = X
ZWSA (Symmetrical) = -X
So far I've been using condition type ZWSA (Class A) with a formula to ensure that no VAT is posted to A/R. By using a custom accounting key in the ZWSA position of the pricing procedure, I determine the G/L account that will receive the cost. The problem with this solution is that the net value of the item becomes (-X). So far it has made no difference since this solution is not used along with the SIS (Sales Information System). Now I need to ensure that the solution works with SIS, so I need the net amount to be ZERO. Can this be achieved in any way? I'm open to solutions involving both customizing and ABAP "tricks".
I hope you understood the context and my requirement.
Regards,
Joã

Dear João,
As per your post it is understood that you have a VAT condition type ZWS3 and also a -ve condition type ZWSA which will be 100% of the ZWS3.
And since you have assigned to a/c key to ZWSA, not the negative value is getting posted to accounting.
My suggestion is to Add one more line in your pricing procedure
Current procedure
ZWS3 (VAT for FOC Items) = X
ZWSA (Symmetrical) = -X                                             A/C KEY
Proposed Procedure
STEP
100   ZWS3 (VAT for FOC Items) = X
110   ZWSA (Symmetrical) = -X
120 TOTAL VAT VALUE   FROM 100 TO 119
130 ZWFL (VAT FINAL) MAINTAIN CONDITION RECORD FOR 100% FROM 120 TO 120                 GIVE THE A/C KEY HERE.
HENCE IF ZWS3 = 10 , ZWSA WILL BE -(100% of 10) = -10
Total vat value = 10 +(-10) = 0
ZWFL = 100% of 0 = 0
Check and revert back.
Thanks & Regards,
Hegal K Charles

Import FOC(Free of Charge) PO (Manufacturing) with claimable duties

Dear SAP guru,
We're currently on 4.6C and implementing a project for India. We have a scenario for Import FOC(Free of Charge) PO (Manufacturing) with claimable duties.
Material price in Material Master = 10(Basic) + 5.00(Un claimable duties) + 3.00 (Freight)
The user would like to see the accounting postings below. Is it even possible to do that in MIGO? I am unable to save my PO when Net Value is Zero. Can you help?
MIGO
Raw Mat: 18.00 (Dr)
GR/IR Clearing: 0.00 (Cr)
Clearing of Duties: 5.00 (Cr) *unclaimable
Clearing of Freight: 3.00 (Cr)
Price Difference: 10.00 (Cr)
MIRO (No vendor invoice)
MIRO (Clearing invoice)
Clearing Agent: 3.00 (Cr)
Clearing of Freight: 3.00 (Dr)
MIRO (Customs invoice)
Customs: 10.00 (Cr)
Clearing of duties: 5.00 (Dr) *unclaimable
Clearing of duties: 10.00 (Dr) *claimable
regards,
Jules

Hi,
"Please check to :
SPRO - Materials Management - Purchasing - Purchase Order - Define Screen Layout at Document Level "
Think here we can maintain the fields for mandatory/display/optional w.r.to each transaction....but my question is why the error message in popping up...even though there is no invoice update indicator is marked.
BR,
Krishna

Re: FOC- FREE OF CHARGE MATERIAL IN CONSIGNMENT

Dear Experts,
Good Morning to you,
When i am doing fixing the stock code for a (FOC-FREE OF CHARGE) material in Consignment when raising Sales order till end of key-in all fields there was no errors but when i was saving the Sales order it was saying an error of SRS AMOUNT HAS NOT BEEN SPECIFIED IN CONSIGNMENT FILL-UP.
Awaiting for your golden replies & points will be assign for useful answers.
Thanks in advance,
KUMAR.B

Dear experts,
I was waiting for ur golden replies.
Thanks you,
KUMAR.
Edited by: Kumar B. on Jun 27, 2008 10:25 AM

Free of charge Item determination in SO with cost and revenue transfer

Hi,
Please guide me on the followings.
I have a following requirement for determining the free goods in the sales order .We have two plants
1. Plant 1 is for valuated materials
2. Plant 2 is for Free of charge Items
Free of charge items which are given to the customers are supplied by the vendors and stored in the plant meant for the Free of charges items. But sometimes when free of charge items are not available in the stock then user take FOC item from the plant which is meant for the valuated materials and send it to the customers as a free of charge item.
User wants to transfer the cost of the FOC item to the main item when FOC material is taken from the valuated plant and sent to the customer.
Similarly when there is no stock of material in the valuated plant then user take the same material from the Plant2(Non-valuated) and send the material to the customer. In this case user wants to have the revenue posted in the respective G/L Account.
But it should also appear as a free of charge items in the billing document.
Regards
Rahul

hi,
transfer of cost from sub item to main item is configured in the delivery to billing copy control for the main item. go to VTFL > select the required item cateogry > here at the bottom you will find a check box Cummulate cost. Tick it.
Not really what you meant COPA purposes. But the pricing conditions are mapped to COPA value fields at KE4I transaction.
regards
sadhu kishore

Change GL account third party for Free of Charge material

Hi All,
Can you please help me with the following flow:
We have a SD order with Free of Charge item.
It is third party processing: vendor send directly to customer without
posting GR in our company.
The COS is posted to a wrong G/L account. How can I change the G/L account, but only when a FOC item is processed?
Thank you,
Eric.

Hi Eric,
Although I do not have much details about your business process requirement, I think you can try creating a new Movement type for such spl cases, create a new Transaction/Event key and assign it to this Mvt. type. If the FOC Materials are few, then you can also think of creating a separate Valuation Class for such materials and use this Valuation Class in OBYC.
With these settings when you use the new Mvt. type your desired GL accounts will be posted. Check before finalising your action plan.
Please let me know if you have any problems.
Hope this helps.
Cheers
Keshav

REG- Subsequent free of charge delivery

Dear All,
What are the steps involved for creation of Subsequent free of charge delivery from a Returns order
The problem we are facing are when we created a SD (Subsequent delivery FOC) with reference to a RE (Return order) we found the Line items are blank. But it is accepting any item code entered manually.
Kindly guide me where it would have gone wrong
Rgds

Check your copying control (VTAA) for the RE to SD.
As per, Standard
Header RE to SD
Copying requirements 001 Header-same customer
DataT 051 General header data
DataT 101 Header business data
DataT 001 Partner header
Item - I Cat - REN to KLN
Copying requirements 304
Pricing type         B
DataT 151 General item data
DataT 102 Bus.data/item compl.
DataT 002 Partner item
X Update document flow
Thanks & Regards
JP

Free of Charge PO

Hi All,
Tried creating a po-line with with acc. ***. K and activated the FOC(Free of Charge) indicator.This FOC cannot be set, please explain why.??? When I try to save the PO, it is shooting error message :
" Indicator for invoice receipt used not allowed
Message no. MEPO026 "
However I didnt marj tick for "Inv. Receipt" in Inoice tab of Item detail......further this tab is grayed out and unable to do changes...
Please let me know any settings that need to moved ???
Thanks & Regards,
Krishna

Hi,
"Please check to :
SPRO - Materials Management - Purchasing - Purchase Order - Define Screen Layout at Document Level "
Think here we can maintain the fields for mandatory/display/optional w.r.to each transaction....but my question is why the error message in popping up...even though there is no invoice update indicator is marked.
BR,
Krishna

Free of Charge Items on Returns POs

Hi,
Our company frequently returns Materials to suppliers either because they are faulty or are being returned as unsold "rotation allowance".
Current Process is as follows;
Create ZRE PO
Create Delivery w/ref to ZRE PO
Create F8 Billing Doc
Generate Customs Declaration from GTS
The issue we have is that a ZRE PO may contain items which are Free of Charge (No credit or replacement due from supplier).
The items are flagged FOC in the ZRE PO but then these do not appear on the F8 Billing DOC and therefore do not appear on the GTS Customs Declaration.
Does anyone have experience with this issue and know of a resoltion?
Many thanks

Hi,
Check the transaction type of the FoC items.
Ashish

Exclude free of charge in available stock.

Hi,
Currently in our system, every sales order created decreases the materials quantity available to sell (before delivery is done). On many occasions we have created free of charge sales orders, which a customer is required to collect within a specified period of time. During this time, the stock of the FOC orders can not be used.
The free of charge order type (ZFD) has been defined for this type of orders.
Is there a way to stop free of charged sales orders from consuming stock until collected (delivery/bill is completed).
Any help would be appreciated.
Nicholas

Nicholas,
Am assuming ATP check is active in your system at sales order level. for the FOC, de-activate the TOR(Transfer of requirements) at sales order level and keep in active only at delivery level. You might choose to have different item categories and schedule line categories for FOC and hence can de-activate TOR check at Sales Order level for FOC orders.
check tcode OVZ8.
Or alternatively, you can develop a custom routine in requirements for Transfer of Requirements which filters your FOC orders in tcode OVB8.
Regards,
Raghu.
Edited by: Rags on Oct 3, 2011 3:23 PM

How to add statiscal value in intrastat report for free of charge Pur Order

Hi Experts,
In Purchase Order if 'free of charge' check box is ticked then it wont allow us to have condition tab ( as there should not be any pricing for FOC) - SAP Standard functionality.
But since I want to report this purchase order in Intrastat report, I need to have some statiscal value for this purchase order.
Can somebody help me how I can add statistical Value to this PO in Intrastat Report ?
I have already tried following option :
1) I try to update through user exit but it is again coming as ZERO - Hence not allowing to update.
2) VEFU- Manually update the records - Not possible to edit Stats/Invoice Value of PO - Hence ruled out.
3) Incompletion log - It is showing/ directing me to the PO in change mode but I cannot edit this as there is no condition tab - Hence not possible.
Can somebody help me ?
Thanks
Arpit

may be you can enetr it in PO header text and extract via z program

Free of Charge Sales Order to GTS

All of our sales orders pulls over the price into GTS for license assignment; except for one sales order type. This sales order type is for FOC sales orders.
I have checked the sales order type in the R/3 and the GTS system and it is listed.
Anyone have a clue why this particular order does not work with GTS

It states the following: all green
Performance of service: legal control
Active legal regulations found for determination procedure "LELDT"
Check legal regulation "EAR"
Country "KR" determined as relevant partner country
Run Import/Export License Type Determination
Check objects for determination procedure ZCTY1 found
Determination of Import/Export License Type at Country/Control Class Lvl
Check legal regulation "ITAR"
Country "KR" determined as relevant partner country
Run Import/Export License Type Determination
Check objects for determination procedure ZCTY1 found
Determination of Import/Export License Type at Country/Control Class Lvl
This is a free of charge sales order...no charge to customer but needs the value for the customs document and needs to depreciate and it is not.

Is it possible to create invoice for Free of Charge order

Dear All,
Is it required to create a Billing document for an Free of charge order as far as Indian scenario is concerned.
We are not charging any value to the customer for Free of Charge. Free of Charge order value will be Zero only.
In this case, is it required to abide with invoice while sending the materials to the customer.
Regards,
Mullairaja

Dear Reazuddin,
But in FOC orders value will be zero.
PR00 value will be compensated with R100 condition type.
But Excise condition type will be calculated on Basic price.
When the basic price value, how the system calculates the Excise condition type values.
Could you please clarify?
Regards,
Mullairaja

Free-of-Charge (FOC) P/O

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