Free Good Revenue Allocations

If the Free Good and Actual Sales of Regular Goods have different Profit Center. There seems to be an issue that one profit center (A) gets all the revenue (6,750) while the other profit center (B) do not receive any revenue ( 0) for the sales.
What options do we have so that we can allocate a % of Revenue from the Regular Good Profit Center (A) to the Free Good Profit Center (B). (i.e. (310/(6750+310)) * 6750) so both profit center are being credit for revenue on the sales?
For Example:
                                                  Amount      Profit Center
Customer Account                       7,327.80
Sales                                         6,750.00-     A    Ship&Handl                                     29.17-     A
Tax                                               271.40-
Tax                                               271.40-
Sales (Free Good)                          310.00-     B
Sales Discount 100% (Free Good)   310.00      B
Ship&Handl (Fre Good)                      5.83       B

Hi Anda20,
just double click on the line item where you enter the free goods in vbn1 system will take you to different screen where you can do so .
also you can manually in sales order given any item for free , provided that the item category determination is done for that item
Revert if possible
Mohit Singh

Similar Messages

Return of Free goods item - Problem in item category

I am trying to create return order of Free sample billing
(ZFDP). The return order type for the free sample is ZFDR.
We have specified Item category for the ZFDR is RENN (Free good item) in IMG Activity -> Assign Item categories.
When I create order and save it, it prompts me to enter G/L Account.
This material is free. It should not prompt G/L Account for it. There is no revenue recognition specified for the item category. I tried changing item category to ZKLN i.e Free of charge item. This item category does not prompt for G/L Account while creating order. but I can not use this item category because it prompts me for Avialability. I can not remove the Avaialabilty check for it because the same item category is used in the Free sample order where availability check is required
In ZFDP order type, we are issuing 100% discount by using R100
discount condition. Please let me know how can I solve this problem.
I think there is some problem in my item category itself. .
My setting for Item category in IMG - Define item category is
same for both ZKLN and RENN. Only difference is RENN has returns
tick and pricing field is blank. In ZKLN pricing is defined as B- 100%
discount. I also tried changing the pricing option of RENN to B.
But still it is asking for G/L Account.
I can not use ZKLN instead of RENN because my ZKLN is used in the
Free item Sales order.
Please help.
Regards
Saurabh Gothivrekar

Hi
I got answer to my query. YOu need to specify the bill type while defining sales document type. This bill type should not have account assignment mentioned in it.
I changed the bill type, which does not have Account assignment procedure attached to it.
It has solved my problem

Free goods sub item not geting generated in credit memo.

Dear All,
Example;
Sales order for free goods    10+1
Delivery                                   10+1
Invoice                                     10+1
Customer has not accepted the goods by some reason.
We have ceated credit memo request 10+1
Return Delivery                                     10+1
Credit memo with reference to return delivery   ;Only 10 qunatity are copying in the billing document.Free goods quantity is not getting copied.Please guide what could be the reason.
Sap std says credit memo should be reference to credit memo request bu out client requrement is ,it should be on return delivery based.we have done all settings but free goods qty is not geting copied.
Regards,
deepti

Hi
KIndly check the copy control configuration in the VTFL
                                                                                Target Bill. Type RE                    From Delivery Type LR
                    Credit for Returns                       Returns Delivery
Copying requirements   003 Header/dlv.-related
Determ.export data
Allocation number
Reference number
Copy item number
Copying requirements   004 Deliv-related item          Billing quantity     B
Data VBRK/VBRP         000                              Pos./neg. quantity   +
                                                         Pricing type         G
                                                         PricingExchRate type
                                                         Cumulate cost
                                                         Price source
REgards
Damu

Free Goods - Not showing in sales order as subsequent item

Dear Gurus,
I have created a Free Goods procedure determination and maintained it at Customer/ Material level in VBN01.
The procedure is inclusive as follow:
For every 100 units purchased, the customer gets 10 units free
However at sales order level there is no indication at all that the Free Goods are being triggered.
When I check the pricing procedure, the condition record NA00 that I have used doesn't show-up.
There is no subsequent item in the sales order under the main item showing the Free-Goods discount.
Could you please help me go through the customizing process to correct the error?
Many thanks for your help
Chris

Hi,
FYI
Free goods can be configured in SAP by following two methods.
(1) Manually
(2) Automatically
Manually: By specifying higher level item category for a line item we can determine free goods as a free of charge
items during sales order processing.
Automatically: System proposes free of goods automatically in the sales order. In automatic free goods
configuration system follows two methods.
(1) Exclusive
(2) Inclusive
Exclusive: System configures free goods in exclusive option like free goods quantity is going to be excluded in
order quantity. Ex: For 10 items 1 item is free. Then system configures free goods as 10 + 1.
Inclusive: System configures free goods in inclusive option like free goods quantity is going to be included in order
quantity. Ex: For 10 items 1 item is free. Then system configures free goods as 9 + 1.
NOTE: In exclusive method other items also can be given as a free of charge items for order item.
Configuration steps: INCLUSIVE
SAP follows condition technique to configure free goods automatically.
Maintain pricing procedure
Path:
IMG
Sales and distribution
Basic functions
Free goods
Condition technique for free goods
Maintain pricing procedures
Choose free goods procedure NA0001 and select it
Click on copy icon on application tool bar and rename it Ex: SRI001
Condition type is NA00 and Access sequence also NA00
Save it and Exit
Activate free goods determination
Path:
IMG
Sales and distribution
Basic functions
Free goods
Condition technique for free goods
Activate free goods determination
Go to new entries
Specify our sales area, document pricing procedure, customer pricing procedure and specify our free goods
procedure Ex: SRI001
Save and Exit
Control free goods pricing
Path:
IMG
Sales and distribution
Basic functions
Free goods
Control free goods pricing
Control pricing for free goods item category
Choose item category TAN from position button
Specify the pricing as X = Pricing standard
Choose item category TANN from position button
Specify pricing as B = Pricing for free goods (100% discount)
Save and Exit
Maintain condition type for 100% discount
Path:
IMG
Sales and distribution
Basic functions
Free goods
Control free goods pricing
Maintain condition type for 100% discount
Check whether condition type R100 is available or not (R100 = is 100% discount)
Exit
Maintain pricing procedure for pricing
Path:
IMG
Sales and distribution
Basic functions
Free goods
Control free goods pricing
Maintain pricing procedure for pricing
Choose our pricing procedure form position button and select it
Click on control data icon under dialog structure
Include condition type R100 between the steps of discounts.
Specify requirement = 55 and Routine No: 28 (100% discount) in Alt. CBV.
Save and Exit
Requirement 55: The Routine No. 55 is assigned to condition type R100. If the user wants to look both revenues
and sales deductions for the free items since the product that we are going to give as a free of charge item can be
sold separately in the same sales order. Then the item category of free goods TANN has the pricing value as B.
Then the system calculates value of the free goods as 100% discount as we discussed above the same material [that
is going to be given as a free of charge item]. Some times the same item is going to be given as a normal item.
Then system calculates price for normal item and system should not calculate price for same item [free of charge
item]. So as to perform this calculation we have to assign Requirement/Routine 55 is to assign condition type
R100.
Alt CBV = 28: [100% Discount] Condition type R100 should be taken as a ZERO value. The formula 28
calculates condition type R100 value as a ZERO.
Set Transfer of cost to Main item: [Copy control]: Transaction code: VTFL
Copy control is a concept by which the system copies the data from source document to target document.
Path:
IMG
Sales and Distribution
Basic functions
Pricing
Free goods
Control free goods pricing
Set transfer of cost to main item [copy control]
Choose Billing type F2 Delivery document type LF from position button
Select it and click on itemicon under dialog structure
Choose item category Ex: TAN
Click on details icon
Click on display or change icon
Choose item category as TAN again
Select it and click on details icon
Check cumulative cost
Save and Exit
Cumulative cost controls whether the cost value (VPRS) is to be copied from relevant sub items into main items.
Sub items cost are not relevant for billing.
Maintain copying control: Transaction code: VTAA
Path:
IMG
Sales and Distribution
Basic functions
Free goods
Control free goods pricing
Maintain copying control
We maintain copy control at item level category for free goods. In this field we can control whether the
free goods should also be transferred when we copy from one document to another document.
Choose source document type as QT and target document type as OR from position button
Select it and click on item control button under dialog structure
Choose AGN item category from position button
Click on display or change button
Again click on AGN
Click on details icon
Check Re u2013 explode structure/Free goods
Save and Exit
This indicator controls whether the free goods are copied from source document to target document or redetermined
again.
Maintain condition records for Free goods [INCLUSIVE]: Transaction code: VBN1
Path:
Logistics
Sales and Distribution
Master data
Conditions
Free goods
VBN1 u2013 Create
Specify condition type NA00
Click on key combination
Specify all the data
Choose inclusive by clicking the INCLUSIVE/EXCLUSIVE push button
Specify the Material No., Minimum order quantity (Ex: 10), Specify [from] the free goods quantity (Ex:
10), Unit of measure u201CEAu201D (Each), Free goods (are free goods) as u201C1u201D.
Calculation procedure: We can specify the Routines for calculation procedure as 1 or 2 or 3
1 = Pro u2013 Rata (Proportionate): Ex: If the customer places order for 100 cases of material u201CXu201D, then customer
receives 20 cases of same material as free. That means, the business can say that buy 100 and get 20. If the
customer orders for 162 cases, then system automatically grants 32 cases as a free of cost (162x20/100 = 32 Cases).
2 = Unit of reference: When customer orders for 100 cases of material u201CXu201D, then the customer receives an
additional 20 cases as a free of goods. That means business can say that buy 100 get 20 free by granting 200 free
for every full of 100 cases. The customer places order for 162, then system automatically grants only 20 cases
(100x20/100=20).
3 = Whole unit: When a customer places order for 100 cases of material u201CXu201D, then the customer receives additional
20 cases of material u201CXu201D as a free of goods item. The business can say that buy 100 and get 20 free of charge items.
If the customer orders for increment of 100 that means 200 (100 + 100) items, then he gets 40. If he placed the
order for 101 u2013 199 items he gets only ZERO.
Save and Exit
Condition record for EXCLUSIVE: Transaction code: VBN1
Path:
Logistics
Sales and Distribution
Master data
Conditions free goods
Specify the discount type u201CNA00u201D
Click on key combination
Click on Choose inclusive by clicking the INCLUSIVE/EXCLUSIVE push button
Specify the sales organization, distribution channel
Specify customer number and validity periods, material, minimum quantity, order quantity, unit of
measure, calculation procedure, free goods (3)
Specify additional material free goods (if other goods is going to be given as a free of charge item.
Save and Exit
Go to VA01 and raise the sales order for INCLUSIVE and EXCLUSIVE.
See the Free Goods effect.
Condition type NRAB = Free goods: Requirement = 59, Alt CBV = 29: [only for INCLUSIVE purpose]
Requirement 59: We have to assign requirement 59 to the condition type NRAB. If the customer buys 100 cases
of product u201CXu201D, then he receives 10 cases of the product free. If the user would not like the additional line item in
the sales order for free goods rather than the discount of the 10 cases is represent in the same line item as other 90
cases. If the free goods discount should not apply on credit for returns that do not make reference in the previous
document.
Alt CBV 29: The condition type NRAB is to be assigned with 29 formula to support inclusive free goods
agreement where the user would have to apply the discount to the order item rather than having a sub item
generated for the free quantity.
Ex: The customer orders for 100 cases of product u201CXu201D, 10 cases are free instead of having a free sub item generated
b the system to represent the free 10 cases, the user would like to have a discount applied to the 100 cases line item
equal to the value of the 10 cases.
NOTE: Free goods can only be configured on document category type u201CCu201D (OR). That means we cannot configure
free goods on Inquiry and Quotation.
Header Conditions
SAP has delivered two kinds of condition types: (1) Header conditions
(2) Item conditions
Header conditions: The value of the header condition applies to the whole items in the sales document.
Header conditions do not have any access sequence.
So that, value of the header conditions should be maintained manually.
Ex: HA00, HB00
Configuration settings:
Include condition types HA00, HB00 in V/08 in between the discount condition types.
Go to VA01 and raise the sales order
Select line item and go to Go to button
Header Conditions
Include condition type HA00 HB00 with values [HA00 is percentage discount and HB00 is absolute
discount]
If HA00 = 1%, then system applies 1% on base value on all items in the sales order.
If HB00 = 100/- Rupees, then system applies 100/- Rupees proportionately to all items in the sales order. If sales
order has two items, then system applies 50/- Rupees to each item.
Click on activate button
Go to item condition screen
Check how system applied header conditions for line items
NOTE: Make sure that sales order contains more than one item.
Condition Scales
We can maintain scales for each and every condition type. So that we can determine pricing conditions values
depending upon the range of the order quantity.
Ex: If you maintain condition record for PR00 for material one as a 100/- Rs. For 1 material, then we can maintain
scales for this material like below:
From Quantity Price
1 u2013 10 1000
11 u2013 20 999
21 u2013 30 998
31 u2013 40 997
Configuration settings:
Go to VK11
Maintain condition record for PR00
Select line item and click on scales icon on the application tool bar
Maintain scales and scale rates accordingly
Save and Exit
Go to VA01 and raise the sales order
Enter the order quantity according to the scale and see the scale effect
Regards,
Siva

Problem with posting free goods delivery

I need some help,
when I'm posting the goods issue in VL02N I'm receiving following error:
<i>Item   Material           Description                                   Delivery qty UoM Batch
000001 XAK 256 N50 CB P35 CN UR V35/ AUTOALARM DOG 50                             1 ST
       E KO 014
Order 2000574 cannot carry revenues</i>
First I don't know why the order no is 2000574 when the delivery was done to order 2065030645, but it's not a problem to me, the problem is why I'm getting the error 'the order cannot carry revenues' because the delivery is made to an free goods order and the order has values of 0 in pricing conditions.
Looking forward to reciving some help
regards,
Martin

Hi Marcin
Check the following:
Free Goods
Also referred as discount in kind. Business can consider to offer discount not in monetary terms but in the form of free goods, ie goods provided without any charge when a particular quantity of material is purchased by the Customer. SAP provides two methods:
a)     Inclusive
b)     Exclusive
IMGSDBasic functionsFree Goods
Condition technique for free goods
Select maintain Pricing procedure
Standard procedure
Copy as ur Pricing procedure
Copy all
Save
The Pricing procedure contains the Condition Type as NA00free goods
NA00 has the Access sequence as NA00
Select activate free goods determination
Assign the procedure to sales areas using document procedure and customer procedure
Select your sales area and assign
S002      SB     SX          A     1     ZA0001
Save
A= Document Procedure (determined based on doc)
1= Customer procedure (Determined from customer master)
We have to maintain free goods condition records
SAP menuLogisticsSDMaster dataConditionsFree GoodsVBN1 Create
Discount type: NA00
Continue
Enter sales org, distribution channel and Customer
By default the entry screen is for Inclusive, Select Exclusive button to maintain Condition Record for Exclusive
Inclusive: Continue, as it is to maintain the record
Material: Product ID
Min Qty: Minimum qty required to be ordered (10)
From: From how many units free goods are considered ie 10
Unit=Unit of measurement of ordered product
Are free Goods: quantity free
Add= The unit of measurement of free goods item
Calculation: 1 Prorata
save
What is the other requirement?
The pricing procedure should contain the Condition type R100 that is free goods condition type. This condition type in the Procedure has requirement as 55
(55 means only if the item is free goods then only value of R100 to be used in the calculation. Value= controlled by Alt condition base value 28 which states that discount should be 100%)
Check whether your pricing procedure is created from scratch then you have to maintain the Condition type R100, requirement as 55 and altcbv= 28
If you have copied from RVAA01 there is no need to maintain R100, as it is already available
Create the order
Ordered qty is split into two items
M1               30 Pcs
This will be split as
M1          27---Item cat TANregular pricing
M1          3Item cat as TANN eligible for 100% disc
How the item category is determined
Main item:
Z1OR + NORM+TAN
Sub item
Z1ORNORM Usage= Free + Higher level item cat as TAN= TANN as sub item Item category
Exclusive
VBN1
Select Exclusive
The screen fields are same as inclusive except here there is a provision to add the material number of free good material, which is different from the material ordered. If left blank system takes both as same material
Reward if useful to u

Free Goods and Excise

Hi Friends,
I have a scenario as
My client gives some free goods as free items in order. But these free items are excisable....so how do configure this scenario.
Where for customer it is free goods, but for company point of view, company has to pay the excise duty to authorities.
Kindly guide on the same.
Thanks in advance
Shailesh

Dear Shailesh,
You can do like this,
1.You can define different pricing procedure for the FREE goods.(T.code V/08)
->In the Free goods pricing procedure you maintain Excise related condition types(T.code V/06)
-->You maintain R100 condition type for 100% discount after the total value.(T.code V/08).
-->Maintain seperate Account key for R100-Condition type, also assign same account key to the Price condition type (in Free goods pricing procedure only)
Maintain same account key for the Price condition type and R100 - condition type.(T.code V/08)
2.You define Different sales document type for FREE goods processing. (T.code VOV8)
-->You assign document pricing procedure C-Free of charge to this sales document.(T.code VOV8)
3.You determine the Free goods pricing procedure in OVKK transaction for this combination.
Sales areaFree goods Document pricing procedure(i.e C)Customer pricing procedure--->free goods pricing procedure.
4.When you do the Free goods process customer account should not get effet to avoid this ,you ask FI people to create seperate G/L account to post the Free Goods process values.
In VKOA transaction you assign free goods G/L account for R100 -->Condition type account key with other key fields(same G/L account For sales revenue and 100% discount).
Maintain the Condition record for R100 condition type with 100% in VK11 transaction
Now when you create Free goods sales order system will pick the Free Goods pricing procedure in that pricing Excise values and Price will come but Total value will zero due to 100% discount.
When you release to accounting
Excise values will posted to the respective G/L accounts.
Price and 100% discount will posted to the respective Free goods G/L account.
Note:- Make sure that you have done the CIN configuration settings regarding Excise duty.
I hope this will help you,
Regards,
Murali.

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

Free Goods -Sales tax

Hi,
I am working on Free Goods determination.
The ultimate aim is to capture excise duty and sales tax for materials which is sold as free to customer.
I could able to capture excise duties,whereas it is not charged on customer.
I could able to sales tax,whereas it is t charged on customer.
Only problem i face is for item category TANN ,tax value should be zero (o) means at the time revenue account determination it should not post to customer account .How can i configure it.
I tried with various options but i could not make it.
I thought of generating report keeping in the mind that where ever the condition type R100 >0.01,system should find out the value for sales tax VAT /CST.
Based on that value credit note have to raised for customer.
Here in our case Rs 2.93/- should be issued as credit note.Is there any other alternative option available.
Thanks,
Pradeep M

We are using the below one.
IF komp-PSTYV = 'TANN' OR komp-PSTYV = 'RENN' .
     IF XKOMV-KSCHL = 'JIVP' OR XKOMV-KSCHL = 'ZCES' OR XKOMV-KSCHL = 'JIVC'.
       XKWERT = 0.
     ENDIF.
     IF XKOMV-KSCHL = 'ZBPF' OR XKOMV-KSCHL = 'R100'.
       XKOMV-KSTAT = 'X'.
     ENDIF.
ENDIF.
ZBPF is our basic price
Regards
Jobi

Free Goods price

I copied item category TANN to ZTAN ... everything is the same in item category details.. But when I created invoice, price is required for ZTAN.. when i use TANN, pricing is not required in the invoice.
Let me know what else is missing in my configuration for ZTAN? It should not require pricing in invoice since these are free goods.
thank you

HI
Kindly check the below settings
In the item category configuration VOV7
Item Type                                        tick   Business Item
Completion Rule                               tick   Sched.Line Allowed
Special Stock                                            Item Relev.for Dlv
Billing Relevance    A                                Returns
Billing plan type                               tick    Wght/Vol.Relevant
Billing Block                                     tick   Credit active
Pricing                                             tick    Determine Cost
Statistical value
Revenue Recognition
Delimit. Start Date
IN Copy control configuration VTFL
                                                                                Target Bill. Type F2                    From Delivery Type LF
                    Invoice                                  Outbound Delivery
Item Category      ZTAN
                                                             Free of Charge Item
Copying requirements   004 Deliv-related item          Billing quantity     B
Data VBRK/VBRP         000                                        Pos./neg. quantity   +
Pricing type         G
PricingExchRate type
Cumulate cost
Price source
check the above settings in your system
REgards
Damu

Free goods accounting

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
shankar

Hi,
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

Free Goods Quota

Hi SAP Expert,
Does SAP Free Goods functionality supports allocated quantity?
We are using SAP ECC 6.0 EHP 3.0
Let me take an example.
We are running a promotion of Buy 1+ Get 1. We have a budget of 100 Free Quantities.
It should work on First come first serve basis
For every free quantity system should check the avaialble quota of free quantity. Once it reaches 100 Free Qty system should not include free line item in sales order.
I would appreciate your reply.
Thanks,

Hi,
1. First create a new material for free goods. By copying the existing material u201CXXXXu201D and add u201CXXXX-Free Issuesu201D in the description
2. Create a schedule line category u201CZPu201D by copying u201CCPu201D and remove tick for TOR. Assign u201CZPu201D to TANN in VOV5 (Do not use CP since TOR is activated in CP)
3. In SPRO> SD> Basic Functions> Availability Check & TOR> Availability Check> Availability check with ATP logic> carry out control for availability check
Make sure that Check box u201CIncl. Sales Requirementsu201D is checked (To address Available quota)
4. Create a new access sequence with a table Sales Org/Dist. Ch/Sales Document type and assign it to the condition type NA00 (To address First Come First serve condition)
5. Using T.Code:MB1B and Movement type 309= Transfer posting material to material post the required quantity to free goods stock.
6. Maintain free goods records in VBN1 by pressing u201Cexclusiveu201D button. Maintain record with Actual material and free issue material.
Once the free goods quantity is exhausted, system will not confirm the schedule lines for free goods item. You have to manually close the condition validity end date in VBN2.
Check this and revert back in case of any clarifications.
Hope this helps.
Regards,
Sharan

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

Tax in Free Goods Pricing

Dear Gurus,
Need ur help to resolve the problem i'm facing in my Free Goods Pricing.
I have used r100 condition type before the tax calculation with 55 and 28. I'm able to bring the net value to 0 but the tax is still calculated and the same is posted to the customers account. As the deal is free of charge the customer is just issued the goods and is not entitled to pay a single penny.
My Pricing
PR00
Freight
BP+Frgt
Excise
BPFrgtExcise
r100
Net Price
VAT
Net Price
Awaiting your recommendations
Rgds
Suresh

i'm calculating the exicse in my procedure. In the SO the net value is shown as 0 but the tax is calculated. In the accounting document following are the entries...
Posting Key   Description                       Value
01     Customer                          701.76
50     Revenue                    5,000.00-
50     Freight Recovery     230.00-
50     BED recovered sales     600.00-
50     ECes recovered sales     12.00-
50     SHECerecovered sales     6.00-
40     Deduction                5,848.00
50     AR VAT Payable - And     701.76-
What i require is that the customer payables should be Zero and that amount needs to the added to the total deduction amount.
Awaiting your valuable suggestions
Rgds
Suresh

Inclusive Free Goods Determination ?

Hi,
   Can someone dend me the config. steps for inclusive free goods determination .
Regrds,
Binayak

dear B B
please gothough this
FREE GOODS:
     It can be configure in SAP by following two methods
A)     Manually          B)     Automatically
A) Manually:
By specifying higher level item category for a line item, we can determine free goods as a free of charge items during sale order processing.
B) Automatically:
System proposes free of goods items automatically in the sale order. In automatic free goods configuration system follows two methods
     a) Exclusive          b) Inclusive
Exclusive:
System configures free goods in exclusive option by free goods quantity is going to be excluded in order quantity ex: 10 items, line item is free, then system configures free goods as a ten plus one.
Inclusive:
System configures free goods in inclusive option by free goods quantity is going to be included in order quantity ex: for 10 items, one item is free, and then system configures free goods as Nine plus one
Note: In exclusive method, other items can be given as a free of charge items for order item
Configuration steps:
Inclusive:
SAP follows condition techniques to configure free goods automatically
Maintain pricing procedure:
IMG  SD  Basic functions  Free goods  Condition technique for free goods  maintain pricing procedure
Choose standard pricing procedure NA0001-   free goods (SD) and click on copy as button and re-name it.
Condition type NA00; access sequence -- NA00
Step 2:     Activate free goods determination:
IMG  SD  Basic functions  Free goods  Condition technique for free goods  Activate free goods determination
Go to new entries and specify our sales area, specify document PP- as A, customer PP as one and assign free goods procedure ex: NA0001.
Step 3:     control free goods pricing:
Control pricing for free goods item category
Choose item category TAN and specify the pricing as a X (pricing standard)
Choose item category TANN and specify the pricing as B (100% discount)
Step 4: Maintain condition type for 100 % discount:
     Choose condition type R100 (100% discount)
Step 5: Maintain pricing procedure for pricing:
Choose our PP from position button , select it and click on control data icon and include condition type R100 between steps of discounts & specify requirement = 5 and specify item no: 28 as a 100% discount in alternative formula for condition base value (AltcBV)
The requirement = 55 can be assign to condition type R100. If the user wants to look both
Revenues and sales deductions for the free item since the product that we are going to give as a free of charge item can be sold separately in same sales order the item category of free goods (TANN) has the pricing value as a B then the system calculate value of free goods as 100 % discounts . As we discussed above the same material (that is going to be given as a free of charge item). Some times the same item is going to be given as a normal item, then system calculate price for normal item, system item ( free of charge item ) so here to perform this calculation we have to assign requirement = 55 for condition type R100
Alternative Condition Base Value   = (100% discount)
Condition type R100 should be taken as 0 value the formula 28 calculate condition type R100 values as a 0
Set Transfer of cost to maintain (copy and control)
IMG  SD  Basic functions  Free goods  Control free goods pricing  Set transfer of cost to maintain (copy control)
Copy control is a concept by which the system copies the data from source document to target document.
Choose billing type as F2 and delivery document type LF,
Select it & click on item icon & choose item category TAN, click on details icon and
Click on display-change icon and choose item category TAN again select it & click on details icon and check cumulate cost.
Cumulate cost controls whether the cost value (VPRS) is to be copied from relevant for sub-item into main items sub-item cost are not relevant for billing. Save & exit
Maintain copying control:
IMG  SD  Basic functions  Free goods Control free goods pricing  Maintain copy control
We maintain copying control at item level category for free goods. In this field, we can control whether the free goods should also be transferred when we copy from one document to another document.
Choose source document type as   a QT & target document type as a OR &
Select it & click on item control button under dialogue structure
Choose AGN item category from position button & click on display or change button, again click on AGN & click on details icon and
Checks re-explode structure/ free goods (this indicator controls whether the free goods are coped from source document to target documents or determined again.)
Save and exit.
Maintain condition records for free goods:
Logistics  SD  Master data  Conditions  Free goodsVBN1 (create)
--Specify condition type NA00 & specify sales org. distribution channel, customer number, valid     periods and
--Chose option as inclusive.
--Specify the material number and
--Specify the minimum order quantity,
--Specify the quantity from which the free goods should be applied
--Specify the unit of measure and
--Specify free goods (are free goods) as a one.
Calculation procedure:
We can specify the routines for calculation procedure as a A-   (1- pro- rata- proportionate)
A) Pro-rata:
Ex: if the customer places order for 100 cases of material A, that customer receives 20 cases of same material is free. That is the business can say that buy 100 and get 20.
If customer orders for 162 cases, then the system automatically calculate 32 cases as a free of cost. 162 *20/100 = 32.
B- Unit of reference:
When customer order for 100 cases of material A , then the customer receives additional 20 cases of A as a free of goods items that is the business can sign that buy 100 and get 20 free, by inventing 20 free for every full of 100 cases.
If the customer places order for 162, then system automatically grants only 20 cases.
Formula:     100*20/100 = 20
C- Whole Units:
When customer places order for 100 cases of material of A, then customer receives additional 20 cases of material A that is business can say that buy 100 and get 20 free of charge items.
If customer order for increment of 100 that is ex: for 152 items, he get only 20 . If place the order 200 items, the he gets 40 that inclusive.
Condition records for exclusive:
--Specify the discount type NA001 &
--Click on exclusive option and
--specify the sales organization, distribution channel, customer number, validity periods and materials, minimum quantity, order quantity, unit of measure, and calculation procedure, free goods and
--Specify additional material free goods (if other goods are going to be given as free of charge item) save it and exit.
--Go to VA01 and raise the sales order for inclusive and exclusive and see the free goods effects
Condition Type: NRAB free goods; requiremet-55; AltCBV-29(only for inclusive)
When the customer doesnt want physically fee goods and the free goods price should be deducted from total price ten we can use condition type NRAB, which hides free goods line item in the sales document
Settings:
Pricing for inclusive free goods w/o item generation
--Choose our pricing procedure
-- Include condition type NRAB with requirement 59 and alternative formula for condition base value- 29 between discount condition steps.
--Go to VBN1, maintain condition record for free goods with Inclusive method and make sure that free goods category should be 3( inclusive rebate w/o item generation)
--save it
--Go to VA01, raise the sales order and check NRAB condition type effect.
Requirement 59:
We have to assign requirement 59 to the condition type NRAB. If the customer buys 100 cases of product A then we receives 10 cases of product free.
If the user would not like the additional like items in the sales order for free goods rather than he discount of 10 cases be represented in the same line item as the other 90 cases. If the free goods discount should not applied as credit for return that doesnt make reference previous discounts.
Alt formula for condition base value-29:
The condition type NRAB is to be assigned with 29 formulas to support inclusive free goods agreements where the user would have to apply the discount to the order item rather than having a sub-item generated for the free quality. Ex: the customer having a free sub-item generated by the system to represent the 10 free cases. The user could like to have a discount applied to the 100 cases like item equal to the value of the 10 cases.
Note: Free goods can only be configuring on only document type C that means. We cant configure free goods inquiries in quotations.
rewards pls
siva

Free goods procured needs to be maintained as valuated goods in inventory

Dear All,
Here the scenario is, the company procures the material free of cost from the vendor, but they need to maintain the material in inventory in the same value as they mentioned in the material master.
But if i check in T code MB52, after making the free goods receipt of the material, the value is zero. Pls suggest how to configure so that free goods remains valuated in inventory.
Rgds,
Raghavendra N N

Hi,
For the valuation of the materials delivered free of charge, you must note which price control has been defined in the material master record.
1. MAP :- If the material is valuated at moving average price, the stock figure is updated on a quantity basis only, not on a value basis. Thus the total stock quantity increases but the total value of the stock remains unchanged. This results in a reduction in the moving average price.
2. STD :- If the material is valuated at standard price, the stock figure is updated on a quantity and a value basis. The receipt is valuated on the basis of the standard price. The offsetting posting to the stock account posting is made to a revenue account for price differences.
So, Value comes only with Std Price control...but it will go to price Difference Acct.
Regards,
Pardeep Malik

Free Good Revenue Allocations

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