Free goods cost

Hello experts,
If the cost of free goods is not transferred to ordered goods (i.e. saleable goods), how to settle the cost of free goods?
For e.g. buy 10 pc of A then get extra 1 pc of A. This extra 1 pc of A is free of charge. When post goods issue in delivery, material doc & FI doc is generated for 11 pc of A. When billing, FI doc is generated for 10 pc of A only because the extra 1 pc is free of charge.
For this case, how to settle the cost for the extra 1 pc of A?

Hi Cat
There can be multiple ways of handling this.. You would need to collaborate with your SD consultant
1. Add Sales Order item in your Sales order, where you enter 11 PC of the Product as the Qty
In the Pricing procedure, enter Base Price for 11 PC and Discount worth of 1 PC..
Remember that, in COPA, the COGS will be transferred only when you do billing.. So, if you do billing of 10 PC, the COGS of only 10 PC will go to COPA
2. Add 2 Sales order items as below
10 - Product A - 10 PC - Item Category  -  TAN
20 - Product A - 1 PC - Item Category - ZTAN
For the ZTAN you can call up a different pricing procedure which will have the discount condition type
May be there are few more ways of doing this.. I suggest you touch base with your SD guy
Br. Ajay M

Similar Messages

  • Cost of free goods in header

    dear all
    i have configured free goods,in the order the cost is coming for free goods at item level and it is not adding  to the header cost total.
    for eg:i have 2 items and 1 free item.costs r 300,400,500 respectively.
    in the header it is showing only 700 as cost.
    i observed the inventory doc is posting correctly with 1200(which includes free goods cost). 
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    thanks
    reddy

    Dear Yugandhar
    Check
    SPRO->Sales and Distribution->Basic Functions->Free Goods->Control Free Goods Pricing->
    Control Pricing For Free Goods Item Category you will find statistical value
    or in VOV7 below pricing you find statistical value
    Statistical values                                                                               
    Indicates whether the system takes the value of an item into account 
        when it determines the total value of a document.                    
    There are three options                                                              
          System will copy item to header totals                  
    X     No cumulation - Values cannot be used statistically     
    Y     No cumulation - Values can be used statistically                                                         
    Check if it is initial for your item category
    Standard for TANN is initial and pricing is B     Pricing for free goods (100% discount)             
    Do give your feedback
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  • Free Goods Query.

    Hi friends,
    If i want to give cost of free good as discount what should i do? my requirement is Free Good Line Item should be displyed along with the Main Line Item (In Output also).But I dont require this item delivery instead i need cash discount.
    Advance thanks

    Hi
    I am not sure whether i have understood your requirement correctly
    Why dont you try with condition type NRAB
    NRAB works like this inclusive without item generation
    Suppose if you have 10% free offer for a material x which is priced at Rs 10 each
    When you create a sales order then in the material x if 10 nos is ordered then there wont be any free item displyed in the line item but the nett value of the doc will be Rs90 only instead of Rs 100
    That is the cost of the free item is spread as cash discount among the othe items
    Now coming to NARB
    Means free goods inclusive without item generation
    Means in your sales order there will be only 1 items with qty 10 the free goode cost will be distributed among the 1 item of qty 10
    Means the order value will be RS 90 only
    There will not be any extra item generated with TANN
    we use condition type NRAB with requirement 59 and alternate base value 29
    Business scenario
    You bought One Laptop, and got Carry Bag Free here you will Use NRAB Conditiopn Type. and Only one line item will be there. No Separate Line item for Carry bag will be there,
    Regards
    Raja
    Edited by: ramanathan raja on Nov 13, 2008 12:50 PM

  • Re: Free Goods Determination

    Hi all
    I am currently trying the work on Inclusive free goods determination.
    Currently if a customer orders 4 items he gets billed only for 3.
    So i have setup a condition as:
    Material/Min q/from/unit/are free goods/unit for free good/calc. rule/free goods category/FGDelvCond/
    Mat.A/--1/4/-EA/1/EA/2---/1/ -blank/
    I have 2 questions:
    1) when i keep the free goods category as 1 - (inclusive with item generation), another item getss added with item category tann. this seems quite logical. But when I keep it as 3 - (inclusive rebate without item generation: only for sales). In this case no item is added & also all the 4 items are priced.
    Can anyone explain what is the result of using free goods category = 3, & when is it used.
    (Note: the pricing procedure is having R100 with req=55,Bastyp=28)
    2) I wanted to know if what i think is correct. the item category determination for free goods is happening due to the following assignment present in the system:
    Order typ/Itm Cat. Grp/Usage/H.Lvl. Itm Cat./Default. Itm. cat
    -OR/NORM/-blank-/--blank--/TAN--
    -OR/NORM/-blank-/--TAN--/--TANN--
    Finally my actual motive is to use free goods determination for a configurable item. So does the same concept apply for configurable items(0002 - item cat grp & item category - TAC) ?
    Thanks
    Vinit

    Hi
    Suppose for e.g take a pen if it is priced Rs 10 and if you apply Free for that take10%
    Exclusive means 10 +1 free
    means in your sales order ther will be 2 line items one with TAN for 10 units and another one with TANN with one unit
    first it will be 10 qty which will be priced each Rs 10 and total will be 100
    second will be 1 qty which is free
    By paying Rs 100 we will get 11 pieces here
    Inclusive means 9 + 1free ( free item is included in the order qty)
    means in your sales order ther will be 2 line items first it will be 9 qty which will be priced each Rs 10 and total will be 90 second will be 1 qty which is free
    In both these cases there will be two line items will get generated in sales document
    first will be chargeable item with item category TAN
    The second will be item category TANN
    By paying Rs 90 we will get 10 pieces here
    Both this inclusive and exclusive are picked by R100 condition type
    Now coming to NARB
    Means free goods inclusive without item generation
    Means in your sales order there will be only 1 items with qty 10 the free goode cost will be distributed among the whole of qty 10
    Means the order value will be RS 90 only
    There will not be any extra item generated with TANN
    Here also by paying Rs 90 we will get 10 pieces
    But  there will be only one line item in sales order
    Ultimately inclusive and inclusive without item generation the nett effect is the same_Hope this answers your point_
    For first two cases we use condition type R 100 with requirement 55 and alternate base value 28
    Inclusive and exclusive are picked by R100
    For the third case we use condition type NRAB with requirement 59 and alternate base value 29
    Inclusive without item generation is picked by NRAB
    The basic difference between R100 (inclusive or exclusive) and NRAB (inclusive without item generation) is with R100 you will find 2 line items in a sales order TAN and TANN and with NRAB you will find only one line item in sales order that is TAN and there wont be TANN
    While creating condition record in VBN1 there is a control on left top which tells inclusive or exclusive
    Actually you have to choose exclusive here to do NRAB
    In the line item while creating condition records you need to specify whether inclusive/exclusive/inclusive without item generation at a column
    Here you need to specify inclusive without item generation
    Actually what you specify here that is in the line item inclusive or exclusive or inclusive without item generation takes the control in the sales order
    If in the left top if it is exclusive you have to choose inclusive or inclusive without item generation in the line item
    If in the left top if it is inclusive you have to choose exclusive in the line item
    If you understand and practise the concept will be clear to you
    I have tried to explain you to the best of my ability and if you reply after understanding this will give a lot of satisfaction to me
    For your qn no 2
    One way of determining free goods is thro item cat determination as you mentioned
    Another way is thro maintaining condition records in VBN1 and doing the entire free goods customization in spro
    Constraints in free goods in R3 taken from SAP library
    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: u2018With material 1, material 2 and material 3 are free of chargeu2018 or u2018If material 1 and material 2 are ordered at the same time, then material 3 is free of chargeu2018.
    Free goods are not supported in combinations with material structures (for example, product selection, BOM, variants with BOM explosion).
    Free goods are only supported for sales orders with document category C (for example, not quotations).
    Free goods are not supported for deliveries without reference to a sales order.
    Free goods cannot be used in make-to-order production, third-party order processing and scheduling agreements.
    If you defined a free goods for variants in a generic article (only SAP Retail), you can only process the variants in the purchase order and goods receipt individually (as single articles). In other words, you cannot process them using the generic article matrix.
    Regards
    Raja

  • Configuring requirement : ordered item to absorb cost of free goods

    Hello Friends,
    I need to configure this in SAP SD.
    The main item should accumulate the cost of the free goods.
    I have  set the cumulative indicator and deactivated pring for this item.
    Do i still need to configure the stock value for the free goods as cost free item? Or is this step only applicable for
    another scenario, like,
    If I were to activate Pricing such that free goods is displayed as subitem and VPRS configured as cost and discount set to 100%
    1. Set  Item category to TANN using FREE usage   AND
    2. use condition type RL00 with requirement 55.
    3. use pricing type B.
    regards
    Ravi

    Read this SAP help at http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fa4e545a11d1a7020000e829fd11/frameset.htm and the topic Free Goods in Sales and Distribution Processing for details.
    Also go through each step of the configuration of the path at SPRO->Sales and distribution->basic functions->free goods.
    Regards,

  • Cost(vprs) of free goods with batch managment

    Dear Gurus,
    I have a problem ahout free goods with batch management.
    Cost(VPRS) is not accumulated in billing(free goods is not relevant for billing).
    My configurations are shown as below:
    Ordered goods (and batch) item category :zta1(copied from tan)
    Free goods (and batch) item category :zann (copied from tann) pricing:B ;not relevant for billing;dermination cost:X
    copy control(from delivery to billing):
    ztan: accumulation cost :X
    If I use the material without batch management,Cost of free goods(without batch) is accumulated to main item(ordered goods).
    So, what can I do?
    Thanks and Best Regards,
    Lykin Kan

    Hi,
    These notes are useful:
    SAP Note 1365939 - VPRS logic and Customizing settings in SD
    SAP Note 547570 - FAQ: VPRS in pricing
    If you have the problem in the transfer from SD conditions to CO-PA, check if you transfer only invoices to COPA, if you don't invoice the deliveries of free goods, then you don't transfer this 'sales' or costs of 'gifts' to COPA. You can check the customizing of COPA in tcode ORKE (IMG for COPA). SAP Note 74486 - INFO: Overview of consulting notes for CO-PA is a good summary about this issue.
    I hope this helps you
    Regards,
    Eduardo
    PD: I forgot SAP Note Number 33968 SD/CO-PA: Characteristics from sales doc tables
    Edited by: E_Hinojosa on Sep 10, 2010 9:44 AM

  • Free goods but want to freight cost updation upon GR

    Hi,
    Scenario:
    I have a PO with 20 line items and header freight cost.
    There are few more items in PO which are ticked as free goods.
    There is a stock of those materials with certain MAP.
    Freight condition has been configured as vendor GR so that it gets loaded on materials upon GR.
    Requirement is that
    Upon GR of this PO,MAPshould get updated with the freight cost for those materials also which have been marked as free goods.
    How this can be achieved ?
    Regards,
    manOO

    Hi Rang,
    Thanks for the feedback.However service PO is out of scope as client do not want to go for servicees.
    I could not understand your suggestion
    <u>you give PO to frieght vendor for freight value & in remarks you mention reciving as FREE GOODS from vendor xxxxx & do GR load cost to material & pay to freight vendor. (this is not advisible, but one solution for your problem).</u>
    I have to receive one material via purchase order as a free item but I need to pay vendor for the freight charges that will be incurred to ship this item along with all the other items in the same PO.
    Can you please explain me further as what you mean to say in your post.
    I should be able to load these freight cost on all the materials in PO including the material with 'free' indiactor.
    In short upon GR MAP should affect with freight cost as there will not be value addition of the material since received as free.
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    Regards,
    manOO

  • Delivery Cost for Free Goods

    Dear SAP Guru,
    I need some advice how to do the following scenario.
    In My Purchase Order there will be 2 material A dan B. And B is a free goods (no invoice receipt).
    And in this Purchase Order there will be added some type of Delivery Cost.
    How can I make this Delivery Cost to be distributed propotional to material A and B since in line item B no condition type are allowed to be added.
    Please help.
    Thanks in Advanced
    Best Regards,
    Sugiharto

    Hi ,
    free goods Delivery charge
    If it is imported free goods..please go through the following link
    PO for goods free of charge
    Regards,
    Nani.

  • Ordered item to absorb the cost of the free goods

    We have created an exclusive free goods agreement and we would like the ordered item to absorb the cost of the free goods.  In order to transfer the correct information to CO-PA from SD billing, what should we do? Can anybody explain briefly?

    Hi Yasar,
    we do the setting for this in copy controls from delivery to billing.
    pl go to t.code VTFL, select the item which is required to abasorb the cost.
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    regards
    sadhu kishore

  • Report for the cost for replacing the defective goods free of cost

    hi guru's,
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    Edited by: joe mm on May 13, 2008 3:35 PM

    Dear joe
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  • Cost Center association with the free goods Material

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    Marga

    Hi Marga,
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    pls assign points as way to say thanks

  • Free of goods cost center...

    Hi Experts-
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  • Free Goods Material Cost

    Hi SD Gurus
    I hade a interview question?
    What will happen to the cost of the material that given as free good
    Thanks & Regards
    Hari

    Hi
    Cost of material will never change for free good for a company which gives it free. Free goods means revenue are zero but the Cost of goods sold will always be same as if it would have sold at some sales price.
    Reward pts if helps
    Kind Regards
    Sandeep

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    Hi gurus,
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