FREE GOODS INDICATOR IN PO

Hi,
Whenever i am creating PO, free goods indicator is coming by default, how to remove this.
In inforecord condition screen free goods indicator is there, but i am not clear with the settings.
In vendor master where is the free goods indicator?
Regards,
Prabu

Hi Prabu,
First you have to uncheck the free goods indicator in info record in Tcode ME12.
Now try PO, if still free goods indicator is coming then you have to go to the following path:
Spro - MM- Purchasing-PO - Define Screen Layout at Document Level-click on ME21N
Here check.
Cheers!!
Utsav

Similar Messages

Where is Free Goods Indicator Stored?

Hi All,
Looking at the PO screen, Free Goods Indicator, Free Item Indicator is stored in UMSON, but I can't find that in any table.
Does anybody know what table this is in?
Please help
Thanks,
Thang

Hi Prabu,
First you have to uncheck the free goods indicator in info record in Tcode ME12.
Now try PO, if still free goods indicator is coming then you have to go to the following path:
Spro - MM- Purchasing-PO - Define Screen Layout at Document Level-click on ME21N
Here check.
Cheers!!
Utsav

Free Good indicator Tick in PO

Dear Experts,
My user want one material in Free from vendor and tick the Free indicator in Po but when user tick the free indicator , system ask for Gr based IV and IR indictor tick, when we tick the same system ask for Rate..
Neeru

Hi,
For free item no need of item category and material code and IR. Please check all these settings are in proper place. Have you maintained planned delivery costs prior to this free indicator setting. Hence might ask for rate. In general for free item no price is required. If planned delivery costs are there remove condition records for this condition types. Thanking you.

Handling of free goods in PO

Dear ALL,
Our vendor has agreed that he will give us one drum of oil free if we buy 100 drums from him.
how can we bifurcate this in the system that 100 drums we have purchased and one is as a free good.
1) what we have to do when raising a PO ?
shall we make PO with 101 drums and select <i><b>FREE indicator</b></i> in PO.In this case all 101 drums will become as free goods.
2) or if we raise a PO for 100 drums without selecting free goods indicator how shall we handle at the time of GR of 101 drums. in this case GR of 101 drums will be treated by system as overdelivery.
3)how can we maintain free goods information in PIR( Purchase info records)
Request to suggest steps in dealing with this scenario.
regards
ajay

Hi Ajay,
One way is create 2 line items in PO, one line item with 100 no's and 2nd line item with 1 number which should be checked with free goods.
At the time of GR do the GR for both the line items.
Hope this helps.
Thanks,
Viswanath

Free Goods Scenario..

Hello everyone,
I am testing one scenario..
please guide me..
in xk02 i have activated "Grand Discount in Kind"
in MM02 purchasing view i have entered Qual for Free good dis as "1".
i have maintained the purchasing info record also in MBN1/MBN2.
and I have done spro settings also..SPRO...Materials Management...Purchasing...Discount in Kind (Discount in Form of Bonus Goods)....Define And Assign Discount-in-Kind Schema....Determine Free Goods Schema.
and when I am creating the PO Free goods are not coming..
I m not able to figure out..how this process run..whether the free goods come in 2 line item or how are they managed and at what stage they are displayed...?
has anybody run this scenario....?
thanks in advance..

Hi,
Free goods can be worked in two ways:
1.With Free Goods indicator set in PO ,all PO quantities will be free of cost.
2.With some discount like if you place PO for 100nos, 10nos are free.Ok,.
For this you need to do customisation:
Set discount in kind indicator in MMR in purchasing view.and in vendor master record.
Maintain customisation...MM-->Purchasing->Discount in kind----> same as pricing procedure..Maintain it.
Maintain inforecord.For conditions enter the values ..or quantities that vendor gives free of cost.
Then create PO. just c the difference.
Work out this one..
Hope this will help and clear .
Regrds,
Udaya.

Free Goods Import Process with Customs, Freight, and Other Taxes.

hi,
I have to import free goods but have to pay for Customs, Freight, and other Taxes.
1. If I tick Free Goods Indicator in PO Line Item, Condition Tab at line item disappears. It will not to calculate other conditions at Header level also. - So I cant execute this option.
2. If i take price of material and insert Condition Type: R001:Discount/Quantity with material price/qty, then it gives Error Message - "Price Must be greater than 0".
So, Is there any way through which I can procure Free Goods and can maintain conditions for Customs, Freight, and other Taxes in Purchase Order.
Please help me in this regard.
- Jignesh

Hi,
1) Create an import PO in ME21N with material price and all custom duty conditions (as you normally create). no need to put free tick indicator.
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 LIV document
5) Check PO item history got updated with IR-L and DCIn. (IR-L will updated with zero amount)
6) Do MIGO w.r.t. IR document number.
7) GR FI document will get updated with the non-set off duty values only.
Regards
Rajesh

Free goods purchasing

hi,
when we create a PO for free goods indicator then the condition tab is not comming. so in that case if freight charge is with the free goods then how do we do that?same problem is comming for excise in case of creating MIRO for the free goods PO.
MIRO is not comming for free goods PO. then how do I create invoice for freight or excise for that free goods?
Regards,
Aniruddha

For Excise entries you can do it by Excise JV

Free goods concept in STO

hi all,
i have an issue regarding free goods for STO betn plants.
our concept is to give free goods for ex- 10 out of 100 are free goods.
when i am creating a po with item catagory U, the free goods indicator is become vanice. so i am unable to process this free goods.
so if any settings is thr , then pls let me know.
regards,
susanta

hi
ru selling ur goods to ur plant?
in sto ur not selling the material to ur plant
so the issue of free goods is not there
thats why u cant see any kind of basic cost condition in that
as the material is transfer from one plant to another the inventory changes and so the the price in material master is get updated for the another plznt
refer following docs
with delivery
http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/134_EN_IN.htm
without delivery
http://help.sap.com/bp_blv1600/V5600/BBLibrary/HTML/135_EN_IN.htm
hope it clears
regards
kunal
award if helpful

Free goods in STO & Inter company PO

Hi Friends
I have one scenario where I get article as free with other Articles, the same free article may get from with out free from some other vendor also. but this free article should be distributed to store with STO and Inter company PO.
problem in PO
I have entered free goods item in a new line item in inter company PO and tick free goods indicator & also created outbound delivery but when I am creating Invoice in VF01 I am only getting one article but not free article...
problem in STO
when I am entering article then free Item indicator is disappearing from line item & I need to do outbound delivery in VL10F
please suggest
Thanks & Regards
Sudha.

can any one help me on this
regd
sudha

Free goods in PO & STO

Hi Friends
I have one scenario where I get article as free with other Articles, the same free article may get from with out free from some other vendor also. but this free article should be distributed to store with STO and Inter company PO.
problem in PO
I have entered free goods item in a new line item in inter company PO and tick free goods indicator & also created outbound delivery but when I am creating Invoice in VF01 I am only getting one article but not free article...
problem in STO
when I am entering article then free Item indicator is disappearing from line item & I need to do outbound delivery in VL10F
please suggest
Thanks & Regards
Sudha.

hi
now suppose u have A B C amterial where C is free
then try making STO of A and B complete the cycle
and for C u can directly transfer with movement 311 movemnt on MIGO
or
try creating the free material as nonvaluated in both plants
then try doing the STO (dont tick for free as it is non val )
hope it clears
regards
kunal

Free goods master for STO or workaround to meet this requirement

Dear Gurus,
I use IS-retail and the situation we faced is we have got a deal from our vendor that if we buy article A will get article B for free. So we set a free goods master using condition type NR00. It work fine in purchase order we order to our vendor however when we create STO to distirbute product from our DC to store, there are no free goods concept in STO.
Does anyone have a solution for this issue or workaround for this?
we would like to have a subitem (Free goods item)pop up automatically when create STO from DC to store for the main article.
Is there a way to goods issue for sto with no cost for free goods article?
Regards
Mintoo

Dear Varun,
I already tried and found that In STO , The free goods indicator is disable (suppress) unlike in normal PO. There might be a reason for this. Do you any workaround on this?
Dear Venkat,
is there a way to use free goods master instead of using BOM. Our SD told that they need to change configuration to serve the sales set???
Best Reagrds
Mintoo

Free Goods - FI & Inventory valuation Impact

Dear All,
I would like to know what will be the FI & Inventory valuation impacts in the below 2 cases
1. When free goods indicator is flagged for an item in PO.
2. When free goods indicator is not flagged, but GR-IV and Invoice receipt indicator is unchecked.
I understand what free goods are, but what i need to know is, how will the inventory be valued in both the cases & what will be the FI impact.
I hope my question is clear, await inputs.
Regards,
Vivek

Hi,
First of all, if you activate "Free" indicator then "GR based IV" and "Invoice Receipt" indicators get deactivated automatically or when you deactivate "Invoice Receipt" indicator then "Free" indicator gets activated automatically. It's viceversa.
Now It depends upon the Price Control you have maintained in the material master.
Once you activate "Free" item indicator OR deactivate "Invoice Receipt" indicator in PO then at the time of GR if;
Price Control is "V" (MAP)
Goods Receipt happens on zero value and inturn reduces the MAP of the material which affects the material valuation. And No FI Entry will get generated.
For e.g. Current Stock of Material = 100 KG and MAP = 110 INR so Material Value = 11000 INR
After GR of 10 KG on FOC basis, Current Stock of Material = 110 KG, Material Value = 11000 INR so MAP = 100 INR
Price Control "S" (Standard Price)
After GR, there is not any effect on the Standard price of the material or material valuation.
For e.g. Current Stock of Material = 100 KG and SP = 110 INR so Material Value = 11000 INR
After GR of 10 KG on FOC basis, Current Stock of Material = 110 KG, Material Value = 11000 INR and SP = 110 INR
Here At the time of GR following A/c entry get generated;
Price Difference A/c - Dr - 1100 INR
GR/IR Clearing A/c - Cr - 1100 INR

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,

Concept of Free Goods in Scheduling Agreement ?

There are two line items with same material but different quantities.
The user has given a price for both and created a SA.
Then the user comes to know the line item 2. is free goods.
So then he/she wants the net price of line item 2. to be zero.
In order to do so, the user went to item conditions and entered PB00 condition type as Zero value.
This was saved but the user was unable to do GR.
I tried to use Net discount condition type and gave 100%, it din't help to do GR.
I tried to create a condition record with free goods, it din't flow in SA, but it works with PO.
So guys, help me with this !!
Warm Regards-
Bharath Anandan

Hi AKPT,
Its true, removal of IR indicator will lead the price to be zero.
But in configuration, account assignment takes care of indicator IR & GR.
In my project, there is no account assignment which has GR & IR without check.
But Thanks for your info.
It was v.helpful

PO Creation of free goods for intrastat reporting

All,
Due to intrastat reporting restrictions, when we are creating a PO with a free good we need to mark the item as "Free Good" on the item overview, and set the "Business Transaction type" to 41 on the "Origin / Destination / Business" tab of the "Import" tab.
However, we also need to set the "Statistical value" on the "Decleration Values" tab but this field is greyed out.
The help message says:
The system determines statistical values on the basis of condition records with condition types GRWR and GWLB (subcontracting).
However it does not say where I can set this value. Does anyone know where I can set this value per material?
Many Thanks,
Colm

Can you explain why subcontracting is free of charge, I have never seen somebody doing some work without charging for it.
are you talking about the delivery of the materials sent to your subcontractor or the finished materials that you get back?
Usually the statistical value field can be maintained in VEFU. But I guess it interacts with the free of charge indicator in your case.
I just like to give you some explanation from the statistical office:
u201CProcessing under contractu201D covers operations (treatment/processing, mounting, assembly, enhancement,
renovation, etc.) resulting in the production of new or really improved goods on the basis of intermediate
materials provided free of charge by the commissioning party. Depending on whether processing under
contract is done within the country or abroad, the relevant terms used are u201Cinwardu201D and u201Coutwardu201D
processing under contract.
u201CProcessing under contractu201C in the context of intra-Community trade statistics covers intra-Community
cross-border movements of goods, provided the finished products produced on the basis of the
intermediate products provided through cross-border transactions will later leave the country of
manufacture (dispatch), being either returned to the original country of consignment (arrival; nature of
transaction u201C41u201C or u201C51u201C) or moved to another country (nature of transaction u201C42u201D or u201C52u201C).
What must be declared is both the cross-border movement of the (free) intermediate materials and the
subsequent (cross-border) return of the finished products.
(Note: Processing performed by the processor on own account is not processing under contract but is
generally covered as purchase/sale (nature of transaction u201C11u201D.)
For the declaration of the intermediate products provided free of charge (nature of transaction u201C41u201D), a
statistical value has to be indicated that corresponds to a selling price customary in the market (free
German border); in case of doubt a careful estimate should be used. When declaring the finished products
(nature of transaction u201C51u201D), the invoiced amount to be indicated is the costs of wage, material, transport
and insurance as invoiced by the contractor; for the statistical value, the statistical value of the
intermediate materials (provided free of charge) must be included, too.
(Note: Intermediate products returned to the commissioning party without treatment should be declared
under nature of transaction u201C51u201D, entering the value originally indicated.)
If, however, the commissioning party provides only parts that are insignificant in terms of function or value
(e.g. labels, screws, etc.), then there is no processing under contract. In those cases, such provision of
materials that is negligible in statistical terms is exempted from declaration for intra-Community trade
statistics. For the finished product supplied on a cross-border basis, a sale or purchase (nature of
transaction u201C11u201D) is regularly assumed, with the value of the materials provided free of charge by the
commissioning party exceptionally not being included when determining the value of the finished
products.
Also, there is no processing under contract if the contract work performed at the goods provided consists
of just simple activities (e.g. simple packaging, ironing, etc.). In such cases the goods exported or
imported temporarily within that scope are not covered statistically.
Examples:
1. A sports car is moved temporarily from Italy to Germany for tuning activities (e.g. power increase,
car body modifications). What is invoiced in addition to the labour costs is some car parts
purchased by the domestic contractor.
As the sports car is u201Creally improvedu201D by the work performed, this is u201Cprocessing under contractu201D,
which has to be declared under nature of transaction u201C41u201D for arrival and u201C51u201D for (re)dispatch.
2. For the production of a car in the Czech Republic, the engine gearbox unit and some other parts are
provided free of charge by the commissioning party located in Germany. For the import of the
complete car to Germany, the foreign producer invoices the car without the value of the engine
gearbox unit.
This is u201Cprocessingu201D of important components (both in terms of value and function) in connection
with the production of a u201Cnew goodu201D (car), i.e. the transaction u2013 by definition u2013 must be declared as
u201Cprocessing under contractu201D both for dispatch and for re-arrival.
3. For the production of an off-road vehicle produced in Austria, the German commissioning party
provides the company emblem free of charge. When the complete vehicle is imported to Germany,
the foreign producer of the off-road vehicle invoices the vehicle without the value of the company
emblem mounted on the vehicle.
Although the components provided are u201Cprocessedu201D, they are insignificant parts (company
emblem) both in terms of function and value, so that this is not u201Cprocessing under contractu201D but a
purchase (nature of transaction u201C11u201D) of a vehicle.
4. An older car is temporarily moved to Poland to restore the paint (washing, polishing and
conserving).
This is not u201Cprocessing under contractu201D in the context of intra-Community trade statistics because
the work performed consists of just simple activities. As this is u201Ctemporary useu201D, the cross-border
movement of the vehicle is exempted from declaration.

FREE GOODS INDICATOR IN PO

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