Free goods in lieu of Rebate Credit Note

Hi Gurus,
Can we have the option of Free Goods Settlement instead of Rebate Credit Note at the time of Rebate Settlement.
Your reply is highly appreciated.
Sadanandam Kasarla

Hi Sadanandam kasarla
Generally if you want to issue free goods then you need to create a sales order and you have to deliver the stock from the storage location also. The inventory level will come down
But if you are doing the rebate settlement. then you will be using a Dummy material to create the sales order and then you will be doing billing . Finally only the rebate value will be settled to the customer .
Regards
Srinath

Similar Messages

Derivation of pricing procedure in rebate credit note

Hi friends!
We have unique issue related to settlement of rebate credit note for a rebate agreement document. The rebate condition records are not populating with correct condition types and there is different pricing procedure being derived in credit note document. My query is that where do we maintain pricing procedure for rebate credit note (VF03) and how do the pricing procedure determine for rebate credit note.
Thanks & regards,
Praveen.

Dear Praveen
In rebates once you settle the amount from rebate agreement the credit memo request will be generated automatically.
With reference to the credit memo request number you go to the VF01 and raise the credit memo (g2).
Make sure that document pricing procedure should be same for credit memo req and credit memo and respective pricing procedure should be assigned in u201COVKKu201D .
Please try and let me know the status
Thanks&Regards
Raghu.k

Posting date for rebate credit note document

Hi friends,
This is with reference to settlement of rebate agreement. There is a background job executed say today, but the posting date was backdated to 31/08/2011. The financial posting period for current month starts from 27th of Aug and the posting was done in current period only. The validity of the Rebate agreement ends on 31/08/2011.
My query is what is the reason behind the system posted the document on 31/08/2011.
Is it because the validity ends on 31/08/2011.
Quick responses are appreciated.
Thanks & regards,
Praveen.

Hi Praveen,
You are correct. The final settlement credit memo request uses the last day of the agreement validity period as the billing date.
Please refer to the 29th Page first and second lines of the Matthias white paper of Rebate management. Below is the link.
http://www.erpgenie.com/publications/saptips/052005.pdf
Hope this helps

Goods receipt corresponding to credit note

Hi,
How can we post a credit goods receipt corresponding to a credit note assigned to a purchase order.
Thanks and regards
Aparna

Hi,
Can we use the movement type 102 and do the posting for the return of a certain quantity of the material from the customer?
Thanks and regards
Aparna

Free Goods recalculation.

I experts,
I have a problem, I need to use 'BAPI_SALESORDER_CHANGE' in a away that when I call the function the system recalculate the free good of the items.
The standard system have validation that when the quantity does not change the free goods are not recalculated, so if when you create de SD order you do not have u201Cbonusu201D and then you create a new u201Cbonusu201D condition, the only way to recalculate the u201Cbonusu201D for the order items is to change the quantity.
Anyone knows a way to u201Cforceu201D the recalc without changing the quantity order, using the BAPI or costumizing the system.
Best regards
Nuno Rodrigues

Hello,
Thank you for your response.
My Discount Type of Free Goods determination is set to:
Calculation Rule: "2 - Unit reference"
Free Goods Category: "1 - Inclusive rebate (with item generation)"
Free Goods delivery control: "C - Delivery of main item is part. delivered, only with main item"
However, whatever the calculation rule is, if I change the quantity in the main item, subitem does not work.
I read about SAP Note 573598 that describes perfectly my problem, but is valid in 4.6 to 4.7 version and I have ERP version.
Thank for your help,
Andrea Figueroa

Free goods concept - Quantity evaluation

Hi Experts,
Can you please tell me, what I have missed out for the following:
This is with regarding free goods concept (VBN1). I have configured a Material X in VBN1 in such a way that, for every 10 quantities, 3 quantities of same material X is given free.
Configuration defined has follows:
Inclusive
Material: X
Min qty: 1
From: 10
Are free: 3
Cal. rule: 1 (Pro rata)
Free goods category: 1 (Inclusive rebate - with Item generation)
While entering 10 quantities in the 1st line of Sale order, automatically 2nd line is getting created with the quantity 3. But, the 1st line item quantity is being changed from 10 to 7.
I want the system to generate as 10 quantities in 1st line item and 3 quantities in 2nd line item. What I have missed out here.?
Please help me..
Thanks in advance.

Hi Vijay,
Its SAP Standard Behavior.
It is showing 2 line items because of Free goods category: 1 (Inclusive rebate - with Item generation)
If you want only one line item you should select Free goods category: 3 (Inclusive rebate- Without item Generation)
System to cannot generate as 10 quantities in 1st line item and 3 quantities in 2nd line item. Its not in SAP standard process.
Hope this will helps you
Dasaradha

Inclusive free goods sale without item generation

Dear All,
I have done successfully free goods sale exclusive with item generation but facing problems with inclusive & inclusive without item generation, in VBN1 for NA00 I have maintained following.
material code - Min Qty - 5 - from - 10 PC - are free goods 1 PC- calc rule - 1
for inclusive and exclusive both in VA01 showing extra lines for freee goods (sale as exclusive)
I have searched at http://help.sap.com/saphelp_470/helpdata/en/06/629ee9fb9c11d199ee0000e8a5bd28/content.htm
here it is mentioned that -"In the free goods master record in the Free goods category field, select free goods category 3 (inclusive free goods without item generation)."
But I have not seeing any field in VBN1 t code where I can maintained free goods category as 3. Can anyone revert how I can maintained this free goods category for inclusive free goods without item generation.
regards,
sp shukla

In VBN2 Maintain (scroll right to get all field)
- calc. rule (Calculation type for determining free goods quantity) as 2(Unit reference).
FYI, Others are 1 - Pro rata & 3 - Whole units
- free goods category 3 - Inclusive rebate (w/o item generation; only for sales).
And coorespondingly maintain Free Goods delivery control.
Regards
JP

Recalculation of quantity in free goods for return order wrf to invoice

Hello everyone,
I want to recalculate quantity of free goods category in a return order created with reference to an invoice, if the quantity in the High Level Item Category has changed.
For example, a customer bought 100 boxes of product "A " and received 10 of these for free. Then he wants to return 60 boxes. When I create a return order with reference to the invoice and change these quantity from 100 to 60, free goods item category still shows 10 boxes instead of 6.
Recalculation must be take place acording to the pricing date determination in order to apply free goods in a valid date.
Customized features reviewing:
1. There's not Item Category Proposal for Target Sales Doc type of the Return order, but item category of source bill type has one an is set to Pricing Type "D".
2. High Level Item category of free goods category is relevant for billing and is set to M "Delivery - related invoices-no zero qtys (in main bath items)"
3. Free goods category assigment has NORM as item Category Group, FREE ussage, High Level Item category is determinated for return order document type and Item category by default is the free goods category.
I will appreciate your support to solve this issue.
Best Regards,
Andrea Figueroa

Hello,
Thank you for your response.
My Discount Type of Free Goods determination is set to:
Calculation Rule: "2 - Unit reference"
Free Goods Category: "1 - Inclusive rebate (with item generation)"
Free Goods delivery control: "C - Delivery of main item is part. delivered, only with main item"
However, whatever the calculation rule is, if I change the quantity in the main item, subitem does not work.
I read about SAP Note 573598 that describes perfectly my problem, but is valid in 4.6 to 4.7 version and I have ERP version.
Thank for your help,
Andrea Figueroa

Free goods , contract, creating order

Hello SAP Prof,
1. what is the diff b/w Free goods and Bonus buy?
2. What is Rental Contract and service contract?
3. How can we create our own order ,
( we can copy std order.) But plz tell me how to create order with copy controls in detail.

Hi Rajesh
Free goods are considered to be merchandise, moveable belongings or personal property. Free goods are those which economists are not interested in because in free goods doe not offer the opportunity for creating a cost for usage. The best example of free goods is air because there is no scarity of air. Economists are interested only in goods, which can be manipulated to create cost for useage. Free goods are plentiful, you have as much as you want without a chance for future cost to society.
A bonus buy refers to any product manufactured or otherwise made available for purchase at a lower cost for a certain period of time. A bonus buy can relate to food, cars, stocks, bonds, insurance, bank loans or almost any product you can think of.
Examples of Bonus buys are: Buy one and get one free, 20% original price, 15% Reduced Mortgage today.
SERVICE CONTRACT:
A service contract is an arrangement between a service provider and service recipient and is characterized by a separate lease and service contract term. The lease usually ranges from 22 to 27 years while the service contract ranges from 13 to 18 years in length. The combination of the lease and service contract terms is typically 80% of the useful life of the asset. While the equity return is based on the overall term, depreciation occurs over 125% of the lease term only which differs from a pickle structure where depreciation occurs over the entire deal term. The participants in this type of transaction are the service provider or lessor, service recipient or lessee, operator, and customer. Typically, a service contract is used with assets such as gas, water, and power distribution networks and generation facilities. However, they can also be applied to real estate and securitization transactions.
A service contract is considered a property lease under section 7701(e) of the IRS Code if certain requirements hold. These requirements are divided into general and special criteria groups. Section 7701(e) outlines six criteria in the general case which indicate when a service contract should actually be classified as a lease:
If the service recipient is in physical possession of the property
If the service recipient controls the property
If the service recipient has a significant economic interest in the property
If the service provider has no economic risk in the contract
If the service provider does not provide services to a third party
If the contract price does not substantially exceed the rental value of the property
To obtain classification as a service contract, the first two rules essentially require a management contract so that the service provider maintains control of the property. The service recipient is allowed to retain an interest in the land underlying the asset via a ground lease without being considered in physical possession of the property. However, they will not be able to mandate how the property is maintained, operated, or improved. There are five rules to consider which determine significant economic interest in a property:
If the property is utilized by a service recipient for most of its useful life
If the service recipient bears the risk of a decline in value of the property
If the service recipient shares the reward for an increase in value of the property
If the service recipient receives a portion of savings in operating costs
If the service recipient bears the risk of damage or loss of the property
To be considered a service contract, the fourth general rule requires the service provider to bear the risk of reduced receipts or increased expenses as the result of non-performance under the contract. An exception to this rule is a provision which allows for an output contract to remain in force during short shut-downs of a facility. To resemble a service contract, the fifth rule states that services must be provided to someone other than the service recipient. For example, a purchaser of power should allow sales to customers and not use all of it for themselves. The last rule states that the total contract price should substantially exceed the value of the property to be classified as a service contract. Thus, if the contract price is derived mostly from recovery of costs of the property or there is a separation between use and service charges of the property, then the contract will resemble a lease.
An important item to note is that not all six requirements need to be satisfied to be considered a service contract. Section 7701(e) does not weight any of the criteria but simply allows for a contract either resembling a lease or a service contract. This would imply that a simple majority of criteria is necessary for classification.
Section 7701(e)(3) provides special rules for determining whether a contract is a service contract. These special rules apply only to the following types of facilities: qualified solid waste disposal, cogeneration, alternative energy, and water treatment works. The following four special rules replace the general rules for the above facility types and indicate when a service contract should actually be classified as a lease:
If the service recipient operates the facility
If the service recipient risks a significant financial loss when there is non-performance under the contract
If the service recipient risks a significant financial gain when operating costs are less that the standards of performance under the contract
If the service recipient has a purchase option or is required to buy all or part of the facility at a fixed price other than the fair market value
There are three main differences between the special and general rules. The first one is that with the special rules, lower operating costs cannot be passed on to the service recipient. Secondly, the risk of temporary shut down of the facility can be shared by the service recipient. Lastly, all costs and benefits due to changes in the law can be passed on to the service recipient.
Service contracts have less tax downside and less financial risk as well as more even returns over time. Also, the contract must be carefully structured to qualify as a service contract. While it is easier to qualify under the special rules, there are many fewer available facilities. The main tax benefit for classification as a service contract is the allowance for depreciation over 125% of the lease term rather than 125% of the combined lease and service contract terms.
RENTAL CONTRACT
A rental agreement is a contract, usually written, between the owner of a property and a renter who desires to have temporary possession of the property. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. The owner of the property may be referred to as the lessor and the renter as the lessee.
COPY CONTROL
Copy Controls
The Copy controls enable a Document in SD to be created by referring to an existing document
Document referred: Source document
Document created: target document
Copy controls enable data to be copied from source to Target document
Copy controls to be maintained for Header, Item, Schedule line
QT---OR
Header                         Header
Item                         Item
Schedule line               schedule line
Copy controls have 3 controls
a)     Copying requirements
b)     Data transfer routines (a program)
c)     Switching requirements
Copying requirements: only if the requirement is met copying takes place
IMGSDsalesMaintain copy controls for Sales documents
Copying control sales document to sales document
Header
Position
Target: OR
Source: QT
Select OR+QT and then select details button
We can see Copy controls
Copying requirement: Same Customer
Only if the requirements met then only Copying possible
Data transfer routines
a)     General header data
b)     Business data
c)     Partners
Switching requirement: Copy item number
Only those items cleared for copying will be copied into target document with item numbers unchanged
Item level Copy Controls
First select combination OR+QT
Click item
Select Item category of source document and select Details button=AGN
Copy controls for item level
Requirement: item rejection reason
Only those items which are not rejected in source document will be copied into target doc
Switching requirements: Copy schedule lines
Activate document flow at item level
This automatically updates item status in the reference document and new document
+Ve/ -ve qty
Quotation 200302        AGN
10          M1          100 Pcs
Copied into order 25 pieces TAN
Completed qty= 25
2nd copy
Copied 50 nos
Completed item = 25+50=75
This means there is + ve effect on Completion qty
-ve effect exists in the case of item level copyng from credit note in the case contracts
Pricing type: Pricing type controls how the pricing to be determined in target documents
Example:
a)     Copy all pricing elements unchanged and redetermine scales
This can be overruled by update Control in the Pricing
Schedule line
Select OR+ QT
Select schedule line
Select schedule line category     BN
Select Details
Copying requirements:
Schedule line qty>0 then only copy
Note1: when we create a new document by copying standard document, copy controls also get copied
Note2. Copy controls can be seen at all different times of documents like sales, delivery and billing in customization
Reward if useful to u
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How to restrict manual changing of free goods in sales order

Hi ,
Goodmorning ,
We have some requirement : In sales order free goods quantity determination by system should not be allowed to change manually , where can we do this ?
Looking for your inputs
Thanks and regards
Venkat

As per SAP Standard, when the main Item quantity is changed, the Free Goods are redetermined. In this case any manual changes to Free Goods Quantities are lost.
But your requirement is for restricting the Chages of the Quantity of Free Goods Correct?
I believe there is no SAP standard solution for this. You will have to apply a User Exit, which will check the Item category of each LIne item & if it is free goods (TANN) then changes are not permitted.
Hope this helps.
Thanks,
Jignesh Mehta

Free Goods Determination

Hello All,
 Can any one please explain the process of Free Goods Determination with both exclusive/inclusive and the config settings .
Thanks in advance
Regards

Hello Manoj
Please find the detailed explanation on Free goods below 
Free goods play a large role in price negotiations with your customers. As a result, free goods are determined to be placed in sales document automatically. In retail, chemical industry or consumer goods industry, it is common to provide discounts in the form of free goods.
a. Inclusive Bonus Quantities Free goods can be part of order quantity not included in the invoice (billing). This is called inclusive bonus quantity. The ordered goods and the free goods both involve the same material. The quantity units of the free goods and the ordered goods must be the same.
b. Exclusive Bonus Quantities Free goods that take the form of extra goods that are free of charge are called exclusive bonus quantities. In this case, the extra bonus quantities are not typically included in the invoice (billing). This can either be an additional quantity of the goods ordered or it can be another article. The exclusive free of goods appear in the SD document as an individual free of charge item.
Both types of free goods are treated in the same way in the sales order. The material that has been ordered is entered as a main item (TAN) and the free item (TANN) is automatically displayed as a sub item. The item category determines how the item is controlled later in the business process.
The system re-reads the free goods master record in the sales order if the quantities in the main item change or if the pricing date changes. The system then deletes the sub items and re-creates them. Any manual changes to the free goods quantity are lost.
Note: If pricing is re-run in the sales order, it does not affect the free goods determination.
The condition technique is used for free goods. Free goods are generally regarded as a supplement to the pricing agreement for a material. You can define master records for free goods at any level such as material, customer/material, price list category/currency/material or customer hierarchy/material. The transaction code is VBN1 and condition type NA00 which automatically gets converted into R100 during sales document processing.
You can restrict a free goods condition master record for one level in many ways
a. Validity period: the condition is only valid within this period
b. Lowest quantity: the condition comes into affect when this quantity has been exceeded.
c. Delivery control:
d. Calculation type:
e. Scales
You can process different master data with the same key for inclusive and exclusive bonus quantities at the same time. You only need to press a button to switch between two types of discount. When you enter an exclusive bonus quantity, an extra entry line appears where you can enter the free material if it is not the same as the ordered material.
When you specify a calculation rule, you decide how the system determines the free goods quantity in the sales order from the additional and document quantities.
a. The free goods quantity is the quantity that is calculated from the discount quantity (not the minimum quantity)
b. Additional quantity is the quantity delivered free of charge
c. Document quantity is the quantity entered by the person creating the sales order.
three calculation rules are provided by the system i.e.
a. Prorated the system calculates the free goods in right proportion to document the quantity. For example if 20 units are offered for free for 100 units in the condition record and the customer orders 162 units, then the system calculates 162 * 20/100 (rounded off) as free goods.
b. Related to units 20 units are given for free for every 100 units ordered. In the above case the customer would only get 20 units free as he placed an order for 162 units.
c. Whole units the customer would not get any free goods if he doesnt match the exact quantity proposed. That is, in the above case, the customer doesnt get any free goods as the ordered quantity did not match 100 units. Anything below or over the mark will not be qualified for a free good.
Calculation rules are stored in the system in the form of ABAP/4 code. You can also define your own rules by using transaction code VOFM (system modifications).
The free goods determination procedure contains a list of condition types for the free goods. One access sequence is assigned to each condition type and each access sequence contains one ore more accesses and each access contains exactly one table. This represents the search key that the system uses to search for valid condition records.
The free goods determination procedure is assigned to sales area + document pricing procedure + customer pricing procedure just as in the case of pricing procedure assignment as free goods are generally regarded as a supplement to the pricing agreement for a material.
If the search is successful, the system generates a sub item for free goods in the document. The item category is assigned with the item category usage FREE.
You can activate an analysis of the free goods determination in the sales document. The system then displays detailed information on how the free goods were determined.
Reward points if helpful
Regards
Sai

Free Goods Pricing Problem

In our pricing procedure we have R100 and NRAB condition types.In sales order we are giving free goods(Exclusive).Now in condition tab for the free goods line item the value is showing as followes
PR00- Rs 150
R100- Rs 150(-)
Net Value - 0
CST- 4.50
Net Value with Tax 4.50
Rounding Off   4.50(-)
Total value - 0
So for this line item Net Value is coming Rs 4.50(-) and Tax is Rs 4.50.
In header this value is adding or subtracting from the value of main line item and showing the final value.
So how can i make the net value and tax 0 for the free goods item, so that it will not affect the total value of the document.
Regards
Jyoti

Hi Jyoti,
In this scenario you can use below pricing procedure.
Step 10- PR00.......................................................................100 Rs
Step 20 Gross Price..............................................................100 Rs
Step 30 CST (calculate on Step 20) From 20 to 20....................   8 Rs
Step 40 Net Value( From 10 to 39)...........................................108 Rs
Step 50- R100 (From 40 to 40)..................................................-(108) Rs
Step 60 NRAB........................................................................
Step 70 DIFF..........................................................................
Total       .................................................................................   0 Rs.
I hope it will help. Please check and confirm
Thanks,
Raja

How to restrict free goods determination based on item category

Hi All,
We have a process where when goods for a sales order are returned , we add a line item to same sales order with a return item category.
The issue is we have free goods determination activated for this document type and it works even for the returns item added to this order latter, whereas we don't want free goods determination to work for the returns item.
Can anyone please advise how this can be achieved.

Hi,
I can think of one of the probable solution for your requirement.
Your need to create new condition table with item Category as one of the key combination. I think you need to update the item category in field catalog as well as in Doc Structures. Then maintain free goods condition record all the item categories except for the Return item category. This way you can exclude free goods activation for return items.
Note : If the number of active item categories are more then it may be difficult to maintain condition records for the item categories.
Hope this will help
Regards,
Sanjay

Check free goods in inqury (Failed)

Hi Guru:
It seemed that I failed to check the free goods via transaction va11 when creating the inquiry,I have no authorzation to use va01 since I am not CSR person,I just wanne to check the free goods which I had created before to see if it works no matter the exclusive or inclusive one,is there another method to check the accuracy of the free goods? Any solution? Thanks.

Hi,
Generally free goods activated in sales order only not in inquiry not in quotation also.
So you have to go to VA01 only to check your free goods determination.
It depend upon the sales document category.
In inquiry you will find A and in sales order C which makes all the difference.
Talk your administrator for the authority over VA01.
Regards
Raj.

Free Goods with Batch Management Activated !!!

Hi Gurus,
I have defined a free goods master data for material on which batch is activated. I have defined the it as with a min of 10 qty 1 free good will be delivered as exclusive item
Now as the batch management is active and each batch has 1 qty in it. Now in order to deliver 1 free good first i have to enter 10 line item of the same material and after the 11 th line system should generate 1 free good item. But this is not happening is there any standard configuration required for this process
Early reply will be awarded accordingly.
Thanks in advance
Edited by: Abaper Abaper on Jul 10, 2008 12:31 PM
Edited by: Abaper Abaper on Jul 10, 2008 12:32 PM

Hi Abaper,
Free Goods Determination follows the condition technique and hence you should have one condition type assigned to it one access sequence and then maintain the condition type (NA00) in a Free Goods Determination Procedure (NA0000).
Then assign this procedure to your permitted sales area and maintain the free goods determination master data (VBN1).
Also Check the settings of Item Category Assignment
It should be ORNORMFREE+TAN -
> TANN.
By this settings your free goods should work.
Reward if it helps you
Regards
Harsh

Free goods in lieu of Rebate Credit Note

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