Accounting Entry IN Free Goods Scenario
Hi Gurus,
Could you please tell me , what is the accounting entry in Free Goods scenario ?
Advance Thanks to All .
Regards,
Aditya Kumar Patra
Hello Aditya,
For Free goods we use R100 condition type for 100% discount.
when invoice is posted system post credit entry to Revenue account for price condition PR00 and other components in pricing as we post for normal sales invoice.
For R100 condition type system debit the account for free goods account which can be expenses account .
At the end customer will not be debited so there will be no receivables against customer.
accounting entry will look like as below
Revenue account Cr
Free goods account Dr.
Hope it will help.
ATP
Similar Messages
-
How to map free goods scenario
how to map free goods scenario?
Hi
Two types of free goods
1.with excise free sample goods
2.With out excise free sample goods
with out excise free sample goods
step1 create a purchase order and tick free goods column
step2 GRN against free goods Po
step3 No a/c entry Generated.
with excise free sample goods
step1 J1iex
step2. Part1 created
step3. Part11 created
rds
Kavi -
Complicated Free goods scenario for Beverage
Hi
These are scenario for F&B business - mostly they have complicated promotion on free gifts which I think SAP standard cannot cover it. If any of you has the similar cases, please share how you handle it, thanks.
1. Buy soda water size 10 oz regardless of soda taste for 1 pack (1 pack consist of 24 bottles) then get 1 bottle free.
2. Buy soda water size 10 oz regardless of soda taste for 1 pack, then get 1 bottle free - maximum at 2 sets.
3. Buy soda water either size 10 oz or 15 oz for 1 pack, get 1 bottle of 10 oz free
4. Buy soda water regardless of soda taste as set i.e. for every 36 packs of combine size 10 oz, 15 oz and 1 lt - get free items of 10 oz/15 oz for 2 bottles per pack and free item of 1lt for 1 bottle per pack
5. Similar to 4 with additional condition that 1 soda taste must be more than 50% - for example, it must be coke at least 50%
6. Sales quota - Buy 1 pack, get 1 bottle free - maximum 100 bottles for each customer
Please kindly share your experience or ideas. Thank you
ChanchanaHI Chanchana,
I had a similar problem while configuring Free goods in Ceramic Industry(Sanitaryware division).
For Eg: In the case of wash-basins, basins of different colors are defined as different materials, an the requirement was to
2 Black & 2 red = 1 tap free
or
1 red, 1 white & 1 black = 2 taps free.
We did a lot of R&D considering std SAP free goods scenario, out of which I can conclude the following:
1) Std SAP allows only 1 + 1(Same material, inclusive) or 1 + 1(different material, exclusive) to be configured as free goods.
In your case if the main material and the free goods are defined as two different materials and there is no 3rd material coming into picture only then free goods config will work.
For Eg: For 10qty Material A, 1 qty of material A free - possible
For 10qty of material A, 1qty of material B free - possible
For 10qty of Material A, 5 qty of Material B, 1qty of Material C free- not possible in std SAP.
You can convince this to your client, but if they still insist on having the same, you will have to develop a custom 'Z' application which will control the same. However, the same might turn out to be very complex, since pricing, COGS of the free material has to be taken care of along with a lot of other factors. Also the delivery and billing has to go through std SAP, mapping of which will be complex again.
All the best.
Regards,
Amit
Edited by: Amit Iyer on Sep 20, 2010 10:17 AM -
Free Goods Scenario..
Hello everyone,
I am testing one scenario..
please guide me..
in xk02 i have activated "Grand Discount in Kind"
in MM02 purchasing view i have entered Qual for Free good dis as "1".
i have maintained the purchasing info record also in MBN1/MBN2.
and I have done spro settings also..SPRO...Materials Management...Purchasing...Discount in Kind (Discount in Form of Bonus Goods)....Define And Assign Discount-in-Kind Schema....Determine Free Goods Schema.
and when I am creating the PO Free goods are not coming..
I m not able to figure out..how this process run..whether the free goods come in 2 line item or how are they managed and at what stage they are displayed...?
has anybody run this scenario....?
thanks in advance..Hi,
Free goods can be worked in two ways:
1.With Free Goods indicator set in PO ,all PO quantities will be free of cost.
2.With some discount like if you place PO for 100nos, 10nos are free.Ok,.
For this you need to do customisation:
Set discount in kind indicator in MMR in purchasing view.and in vendor master record.
Maintain customisation...MM-->Purchasing->Discount in kind----> same as pricing procedure..Maintain it.
Maintain inforecord.For conditions enter the values ..or quantities that vendor gives free of cost.
Then create PO. just c the difference.
Work out this one..
Hope this will help and clear .
Regrds,
Udaya. -
Unable to cancel Billing due to cleared accounting document for Free Goods
Hi,
I have a case as described below:
I. SALES ORDER CREATION
Transaction VA01 à Sales order is created for the following details:
1. Material Normal (TAN) : 100 CAR
2. Free Goods (TANN) : 10 CAR
II. Subsequent processing of sales order
a. Delivery(1) and Billing (1) creation for the SO with the following details :
Material Normal (TAN) : 100 CAR
Free Goods (TANN) : 5 CAR
Status of accounting document after releasing billing document to Accounting: Not cleared
Accounting Journal:
A/R xxxx
Sales discount xxxx
General Domestic Sales xxxx
VAT u2013 Out(TAX) xxxx
b. Delivery (2) and Billing (2) is then being made for the leftover item of the Sales Order:
Free Goods (TANN) = 5 CAR
Status of Accounting document after releasing billing document to Accounting: CLEARED
Accounting Journal
Dr. Sales Discount xxxx
Cr. General Domestic Sales xxxx
III. Reversal of Billing (2) needs to be done
Activities conducted:
a. Go to VF11 and enter Billing (2) document number
b. Execute!
System response:
Error Log:
1) Data inconsistency during processing of document xxxxxxx
2) The Billing Document xxxxxxx is already cleared
From the error found, we tried to reverse the cleared accounting document by using t-code FBRA:
System response:
Document xxxxxx IS NOT a clearing document
Question:
We have to reverse the clearing document first in order to cancel the related billing document but we keep finding this error, do Anyone have any advice to solve this issue?
We have simulated similar transaction in IDES and no problem is found, is there any specific setting in customizing that can allow cancellation of billing document regardless of its accounting document status (Cleared or Not Cleared) ?
Thanks in Advance,
IndroThanks a lot for the reply,
It answers my question, I found the copying requirement using routine 029 was defined in the cancellation document section of the Billing type to be cancelled
After removing, the billing document can be cancelled
Thanks,
Indro -
During goods returns same accounting entry as when good issue
Hi,
In our project we have a condition that charge on a provision account during goods receipt of a purchase document. Hers the accounting entries generated is ok. However we also create purchase order with return item. During goods issue (mvt 161) the accounting entries created is same as the goods receipt instead of being the inverse.
I do not understand how this is determine and will be grateful if you could help me. Thanks.hi,
Check the details and TE key which is hit while 161..
If its correct then go to OBYC and check the G/L account which is getting hit in the inverse for your transaction...whether it is properly set or not...
it may be possible that instead of deibt it would be getting credit n visa versa....
Regards
Priyanka.P -
Free goods ( scenarios )
Hi all
Q. Free goods
Can u giv free goods to a customer only if he order Material A & Material B , then only he will be able to get material C as free
Thanks
Pradeephi friend!!!!
yes u can do it
only u have to maintain condition record in t-code VBN1 and with condition type NA00
in first screen u maintain the material on which freegoods provide e.g.
u r material A &B mention there
material---minimum quantity-- from -
unit---are free goods
A -
10 -
10---- EA----1
THEN SELECT above line then click on scale
now here different window
min quantity---- from -
unit-are free goods add mat free good
10 -
10---- EA----1 -
HERE MATERIAL" C"
HOPE IT WILL HELP
POINTS IF SOLVE -
Free Good scenario for a standalone CRM
Hello Experts
We are on CRM 7.0.
I'm trying to configure Free goods determination in CRM sales order TSA. We have
done all the relevant customizing under CRM -> Basic Functions -> Free Goods.
Free Goods Procedure: 0NA001
Condition Type: 0NA0
Access Seq.: 0NA0
Table: SAP010
We have created the condition master data under transaction /SAPCND/GCM
with the following parameters:
Application: PRT
Maintenance Grp: PRT_FGOODS
When we create a sales order which uses the free goods procedure 0NA001 the system doesn't determine the right product. I would expect a sub item being added automatically under the main item which is part of the offer but nothing happens.
Please revert if anyone knows the settings in CRM
Thanks
DJHI,
In Transactions -> Basic Settings> Define Item Category Determination, you need to assign item category TANN e.g
1. Your Transaction Type
2. Item Category Group
3. Item Usage = FREE Free Goods
4. Your Main item category group
5. Item Category = TANN, YTNN
Hope this will resolve your query.
Regards,
Ankush -
Accounting document for free goods.
Hi All,
When the item category is is changed from "TAN" to "TANN" in the standard sales order, the net value of the order becomes zero. Create delivery and billing dicument for the same. Now if the billing document is released to accounting, the system prompts a message "No accouting documents required for this billing document".And I agree that the system response is correct,because the net value of the order is zero.
But the requirement is, the client wants the accouting document to be created for the cost price of the material which will be given free of cost to the customer.Can somebody give me a clue to achieve this?
Regards,
RaghavDear Raghav,
In the standard system Item Category TANN is marked - not relevant for BIlling. You need to change this.
For that use T-Code - VOV7 (Maintain Item Categories)
Select TANN & under Business Data there is box for Billing Relevance.
Currently this box would be marked as Blank (Not relevant for billing).
All you need to do is mention "A" in this Box. (which means Delivery related BIlling)
Hope this helps...
Give points if useful...
Thanks,
Jignesh Mehta
Mumbai -
How to enable multiple entries for bundling free goods in vbn1?
Hi SAP Gurus,
How can I enable bundling of free goods in SAP using vbn1?
In creating an entry, I place the material number, qty and other required fields then assign the material number of the item that I want to bundle with the 1st product. My problem is that I can only assign 1 material number to a product.
Scenario:
Mat. No. 1 is the main item, then I assign matNo.2 to be budled with matNo.1. I also wanted to assign matNo.3 to be bundled with matNo.1. But unfortunately, When I place another entry using matNo.1. Error says that it is currently being processed. It seems I can only assign a single free goods. How can I set this to multiple?
Thanks in advance!Hi Colleague,
No. This function is not provided in the R/3 System. Only one record is taken into account during the free goods determination with the existence of several valid condition records. This record is the one with the largest minimum quantity. For this record the system only generates one free goods subitem.
Free goods can only be supported on a 1:1 ratio. This means that an order item can lead to a free goods item. Agreements in the following form are not supported: #eWith material 1, material 2 and material 3 are free of charge#e or #eIf material 1 and material 2 are ordered at the same time, then material 3 is free of charge#e.
You can refer FAQ note 549963 which clarifies this point.
I hope it can be helpful.
Regards
Ruy Castro -
Hi.
Friends,
I am doing Free goods Scenario. In this i am not charging any thing to customer.
But company has to pay excise duty on that so what accounting entry should be pass on to accounting at tha time of invoicing &how to configure it. pls send the solution immidiately.
thanks & regards
rikhabHi rikhab,
1.define free of charge sales document
2.define new pricing procedure for free of charge as per your requirement
and in that procedure select statistical check box for price condition type
3.determine your pricing procedure for your document customer and sales area
try this
regards
bvdv -
Regarding free goods issue scenario
Hi all,
I am working on free goods scenario . I have done all configuration steps as mentioned below
maintain condition type
maintain pricing procedure
Activate free goods determination
Q.Now here i have one question, apart from above configuration any other configuration required
Continue..then i have created condition record for free goods condition type and then i have created sales order with taking all relevant data...here free goods concept working like system automatically taking free goods from main item in case of inclusive and reducing qty from main item...
Q. Now here I have question...in sales order, should net value of free goods show 0.00? If not, then what net value should show...
because in my sales order, net value of free goods is showing value not 0.00...
Q...shall i have to update condition type RA01 with 100%(-) in sales order itself? If not then where we can update or how will show 0.00 price for free goods in sales order automatically....
Because as per my process..once i have done pgi against o/B delivery of SO..and then creating and posting billing document of generated invoice or billing document....for both main as well free goods price is taking and updating sale revenue account..
Q...please guide me where i am doing wrong...because free goods price should not be update sales revenue G/L account....Hi
have you did the free goods item catogory detemination
Doc Typ it.c grp Usage H.Lvl.Itc Dflt.itc
OR NORM FREE TAN TANN
and check in your pricing procedure cond.type R100 has maintained with Req 55 and Base type 28.
activate free goods detemination(t.code V/N6)
s.org D.chnl Div Do.pri proc Cus.Pri.proc Free goods procedure
0001 01 01 A 1 NA0001
Create condition record for free goods (inclusive or exclisive)
Thanks
siva.k -
dear all,
We are facing one problem in free goods scenario.
i.e: higher level line item is a sale and values are passing to accounts.but free goods for the higher level line item is not a sale it s issued as free.
now question is whether free good item value should pass to accounts or not????????
In billing ,free good line item is showing zero value. but it is posting values to accounts.
but our client wants free goods not to be posted to accounts as it is not a sale item.
is there any documentation on this if any?
thanks
shankarHi,
Free goods also will have pricing as performed for the normal (higher level item) and all the sales revenues and sales deductions like discounts will be updated in the respective GL accounts. You can observe this in the item conditions of that particular free goods line item. After calculating all the values finally the R100 condition types determines 100% discount.
Again as per my understanding Do Inclusive Free Goods so that the value for the items which are having calulated will only post into accounting.
Thanks,
raja -
COGS update on other GL Account at the time of Free goods or Sample goods
Hello,
In sales process, Usually the at the time of Delivery, material document is created as
DR COGS
CR INVENTORY
But in the case of free goods or bonus goods or samples: the account should not determines COGS instead it should determine another GL Account called as Free good -COGS expense A/c.
How can we solve the issue.
Regards,
SKHi Yasar,
You need to create a new routine for calculate type.
Do as below:
1. Go to VOFM>Formulas>calc.rule Rebate InKd to create a new routine for calculate type. for example 601.
2. add the following code in this routine 601 and then save.
USING L_FRM STRUCTURE KONDN_FRM.
DATA: VORKOMMA LIKE KONDN-KNRMM,
NACHKOMMA LIKE KONDN-KNRMM.
L_FRM-NRMENGE = 0.
L_FRM-NRRUND = 0.
L_FRM-NRMENGE = ( L_FRM-MGLME / L_FRM-KNRNM * L_FRM-KNRZM ).
business rounding
VORKOMMA = FLOOR( L_FRM-NRMENGE ).
L_FRM-NRRUND = L_FRM-NRMENGE - VORKOMMA.
L_FRM-NRMENGE = VORKOMMA.
3. Select routine 601 in field "Calc.Rule" when you create free goods condition record.
Hope it helps. -
Accounting entries in PRA under various business scenarios
Can anybody send me the detailed data flow chart in PRA (IS oil and Gas) alongwith the accounting entries under various business scenarios explaining the financial impact so as to understand the production and revenue accounting recorded through PRA module?
Thanks,For quick and correct response. Please post your question in the following forum -
SAP Community Network Forums » SAP Solutions » ERP Financials
Thanks,
Shambhu.
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