Exicse for free of Cost Material

Hello,
I have a question regarding Excise on Free of cost Material. When we are sending material to Customer as a sample or free of cost then we do not pass any accounting entry for the same during VF01.
In the above scenario how do we capture the excise in our system..Please guide me.
Br,Vivek

Hi taurian,
This is very simple.
in the Pricing Procedure for FOC, shall I maintain the Excise Condition Type as Statistical?
for this no need to Specify statistical for condition types because after delivery subsequent billing is proforma.because this value should not post to accounts,that's why we create proforma invoice.So even without specifying statistical accounting document will not be generated.
but as per central department of excise we should pay the duty while goods leaving from factory.So that we should post this excise conditions amount to the accounts.
So create subsequent excise invoice then accounting document will be generated.system will calculate the excise condition amounts based on basic price you maintained in V/08,system does not bother whether basic price condition type is statistical or not.
For your understanding:
Configuration:
order type FD,Item category-KLN,Schedule line-CP
Delivery type LF
Billing type F8 (delivery related proforma)
Sales cycle:
Va01>vl01n>vf01>j1iin
Let me know for further clarifications.
Thank you,

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Invoices for free of cost material

Hi All,
We are creating a delivery for free of cost material. while creating a billing document using T. Code VF01 with reference to delivery, i can create multiple invoices with reference to same delivery.
How cani block creating the multiple invoices wrt same delivery in this case.
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Prashant

Hi,
You have options to restrict to have only one invoice:
1. User exit
2. Develope a routine in copy control- Delivery to Billing.
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Vamsi P

Free of cost Material

Hello,
We have a scenario in which their exists a material ( finished trading goods ) having moving average price as price control indicator is V.
Suppose stock of material is 1 now with moving average price as V, hence total stock value is 100.
Now we receive the same material from the group company as free of cost i.e without any value.
Is it possible in standard SAP that moving average price should remain at 100 with stock qty as 2 when GR for free of cost material is done ( I think this could be achieve by defining the new movement type and settings in customization with only qty update and no value update ).
Even if we achive the above thing stock value would be 200 as stock qty 2 and moving average price as 100.
Is it possible in standard SAP to keep the stock qty as 2, MAP as 100 and stock value as 100 after receipt of material as free of cost.

first of all free goods tick is available in PO line item.
second scenario
if you have 2 quantity with moving average price 100 so total value will be 200
if you did GR of 2 quantity free of cost then no value will be added. the total stock value will remain 200 for quantity 4. but MAP per piece will change to 50. so stock 4 total value 200 MAP will be 50.
regards,
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Problem regarding Purchase Order with Free of Cost Material

Dear Xperts,
I am facing problems while doing Goods Receipt of a Purchase Order having all the materials we are going to receive Free of Cost from the Vendor.
This case is happening with Doemstic and as well as Importer Vendors also.
Problems to be solved:
1. If we are using Tax Code(with excise conditions) ,excise duty calculation does not take pace automatically at Goods Receipt as the Material Value is Zero on which the duties will be calculated for a Manufactuing Plant.
2. This case seems very problammatic if that Purchase Order is having almost thousand line items.The user has to enter all the Excise duties manually for each & every line item during Goods receipt in a manufacturing Plant.
3. In case of Importer Purchase Order also, the CVD portion & CESS on CVD portion user has to enter manually.
4. To solve this problem we are not using Free Goods Indicator in PO, we are entering 0.01 paisa , but during the MIRO of Planned Delivery Costs , the system is not showing or providing POP-ups of those relevant condition types to the user to enter the actual amount.
Please advice, how can we proceed in this case.
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Soumick

First you are putting 0.01 value . So the planned delivery cost is not showing coz if say tax is 8% then 0.01 x 0.08 will be 0.0008. It will take first two digit after decimal and hence its 0.00 and hence plannded delivery cost is not showing.
If you put 0.5 you will be able to put planned delivery cost in MIRO
Now regarding value is zero and how will the import duty be calculated. May be make a pricing routine where in the custom duty is not calculated on this base price 0.5 or 0.01 but on the actual value if it was not free of cost and that value you can maintain through MEK1 transaction code.
And while posting MIRO or MIGO you need to identify that these are free of cost material and use BADI fi_ac_document
and may be replace the actual GL with some other GL so that 0.5 or 0.01 does not add to your inventory cost and you could knock off later.
Regards
Sangeeta
Edited by: Sangeeta Khurana on Feb 6, 2012 1:37 PM

Free Of Cost Material Receipt & Issue

Dear Expert
We have received some materials free of cost from govt. , and also we have issued same material to our project/cost centre free of cost. Pl. guide us how to receipt & issue free of cost material to the cost centre/Project.
Thanks & Regards
Piyush Dave

If you receive a delivery free of charge from the vendor, you must first determine whether a purchase order was created for it or not.
A delivery free of charge increases both total valuated and unrestricted-use stock of the material.
Activities
Entering a Delivery Free of Charge with Reference to a Purchase Order
If the Purchasing component ordered a material with a price of zero and specified in the purchase order that no invoice is expected for the delivery, you post the goods receipt with reference to the purchase order.
Entering a Delivery Free of Charge Without Reference to a Purchase Order
If you receive a delivery from a vendor free of charge for which no purchase order was placed, you post the receipt of the goods as a miscellaneous (other) goods receipt.
Choose Goods movement ® Goods receipt ® Other. Enter the data as required and choose movement type 511. When you process the items, the system prompts you, for every item, to maintain a text for the delivery free of charge on the detail screen. This entry is mandatory, since without a purchase order there is no other way of entering information about the delivery

COGS determination for Free of cost sales order

Hi All,
We have an issue regarding the COGS determination for Free of cost sales order. We created a free of cost sales order. But i need to know whether this sales order items will hit to COGS or not? If so how do i check whetehr its has been charged to COGS or not? and we have an issue raised saying thst one material in this sales order has not being charged to COGS. So please help me to solve this issue. Ihave checked the account assignment in GBB-VAX. And is there anyting to do with the settlement profile for COGS determination?.
Thanks and regards
Uday

Hi,
During PGI a material document and accounting doc gets created which would hit COGS account.
You're talking about one specific sales order in which for one material it didn't hit COGS account or any order you're creating now with that material has an issue? If its a specific material which has an issue always..then something is wrong with that material master setup. Also you can go to the reported Sales order--doc flow to the PGI document and check the accounting doc and if its not posted..check the analysis why its not posted?
And if its one off then I would suggest 2 options:
1) Reverse the goods movement, cancel the delivery or if billing has already been done..cancel the billing as well. And re-do the cycle. This always ensures correct posting.--> Recommended option.
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And settlement profile is Controlling concept..not sure you would get any help on this in this forum.
Regards
RS

I'm having a brand new unopened Apple 5W USB adapter from UK. I want an Indian version USB adapter. Will Apple Store replace my USB adapter for free of cost ?

I'm having a brand new unopened Apple 5W USB adapter from UK for my iphone 5. I want an Indian version USB adapter. Will Apple Store replace my USB adapter for free of cost ?

Perhaps, but maybe not, as what can they do with one with the UK plugs? I'm just saying regional things like that often have to be returned at a store in the country you bought them.
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Free of cost material but the planned delivery cost is to be invoiced

Hi,
We are having a scenario where in we receive material free of cost but have to pay for the delivery cost to the vendor.
We are creating Purchase order with the "free item" checked and we are maintaining the freight condition at the header level as at the item level as soon as you check the free item check box, the conditions tab disappears.
Secondly if we are maintaining planned delivery at the header level it requires the Invoice check box to be checked. Which is not possible to maintain with the free check box ticked.
Have maintained the vendor master without the GR based IV tick.
Request to kindly do let us know where have we missed out.
Regards,
mahesh.

one of the way out of this issue is
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Can i get Adobe Photoshop CS2 for free of cost?

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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.
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Booking Customs Duty for Free Import Material

A standard import procurement cycle is as follows.
Customs duties are applied as planned delivery costs in the pricing procedure in PO. The vendor for the customs conditions is changed to 'customs vendor'
1. MIRO is done against PO to pay the duties to customs (planned del costs)
2. GR done against PO (referencing customs MIRO)
3. Finally, MIRO to pay the vendor.
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Now I have a PO for a free of cost material but the entire duty has been paid to the custom vendor.
I created a PO with the custom conditions but when I tick the 'Free item' indicator
the price as well as the condition tab disappear.
How do I go about booking the MIRO to pay the custom duties?
Regards
S Datar.

Hi Satyajit
1) Maintain normal PO including net value and othe duty conditions
2) Process MIRO for goods and delivery costs simultaneously.
3) Maintain zero amount for goods item and actual values for the duties (Ensure selection of goods item including delivery cost items)
4) Save the IV document
5) Observe PO item history got updated with IR-L and DCIn. (IR-L will updated with zero amount)
6) Then go ahead with MIGO w.r.t. IR document
7) GR FI document will get updated with the non-set off duty values only.
warm regards
sairam akundi

Free of cost supply for Rejected item

Dear All,
Please help me in the following scenario :
a. A line item ( Imported item )rejected by quality .
b. For that rejected item foreign supplier send us the same material in free of cost . No need to pay for that item.
c. I paid the freight and customs duty for both rejected item as well as for free of cost item .
My questions :
1. How to make GR for free of cost in the same P.O ???
2. How to account the customs duty and freight that has been paid twice for the same item ???
3. Can i avail cenvat facility for both item .???
Please clear ....
Cheers,
Somu

Hi
If the PO is not taken into GR then add the item once again in the PO and chec the FREE GOODS checkbox. By this check the GR taken will not affect the cost of this item.\
For the double payment made already , you can create a credit note for the vendor in MIRO [Subsequent credit], by choosing the amount and entering the articles.
On confirmation of MIRO the value will be reduced from these articles in proportion which was actually increased due to double payment.
Hope this helps.
Regards
Govind.

Regarding Import Scenario for free goods

Hi Sapgurus,
the typical scenraio :-
1) Suppose a vendor from china has send material of A,(Quantity of 10 kg),
For that scenario, I Have done ME21N(Import PO) and i paid the Custome duties through MIRO. i did GRN wrt to Commercial invoice number and the P.O. and then i paid the payement for import vendor.
2) Now the vendor sends materials of A (Quantity of 2 kg as free goods). for these free goods we have to pay cutome duties and we have to take the existing p.o. for which we already paid MIRO (Custome Duties),MIGO(for P.O.) and MIRO(for which we have paid the payement).
in SAP, when i amendment the P.O by adding the same material in other line item and flag as free of goods, then the condtion tab at item detail is dissappearing. hecne i could not give the percentage of Custome duties(CVD etc....). so that at the time of the MIRO, there is no item displaying.
Hence Please help me with this issue.
Thanking you
Praveer

Hi
For the free item ..... dont tick free PO indicator ... put price as 0.01 or say just 1.0
Then only u can do it ...... in MIRO enter exact custom duties .... and dont do MIRO for these free items
Ask account people to clear it manually .... or may be even if u do MIRO for free items costing 1 RS ....still account people
can knock off the amount

Calculation of sales tax for free item

Dear SAP B1 Experts
I have query regarding sales tax calculation for free item .
For EG. I have two item for sales (A = 1000, B = 100)   Sales tax is VAT4%
But when i am doing sales, i am selling B for free of cost with A for Rs 1000/-
here my tax calculation is (1000 *4%) = 1040/-
but as per the govt sales tax rule, we are liable to pay the tax for free item as well
So I this case, In SAP B1 how we will calculate the tax 4% for free item .
Please help me.
Thanks

i have checked, its working okay, but
in Invoice print out unit price and line total is showing for free item. How i make the unite price 0 .
Tax only calculation is based on the Line total and the line total is based on the unit price.
in that case when i give the invoice to the customer.
It should show like this
Item A       100   * 10         1000
"    B           0   * 1              00
                                         1000
4% tax                               44
Doc Total             =           1044
thanks
Regards

Cost center valorization for free of charge item

During sales order entry I need to have some
- standard item that have to be invoiced to the customer
- free of charge items; these items have not to be invoiced and for them I need to value a specific cost center ( for the standard price stored in material master data).
I know there is a customizig setting I can use to manage the relationship between the order reason and the cost center but this value is valid at header level (VBAK-KOSTL) while I don't know how I can set different cost center at item level (VBAP-KOSTL).
Thank you in advance,
Alessandro

Hi,
in NewGL I am sure that its not possible as there is no accounting document created (which contains the PRCTR information as well) if the revenue is zero.
And I am pretty sure that its not possible too in old PCA (Ledger 8A).
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BR Christian

Exicse for free of Cost Material

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