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

Similar Messages

Cost Center association with the free goods Material

If you are issuing free goods (Material) to your customers or reps could you have the transactions recorded to cost centers. If so how?
Thanks,
Marga

Hi Marga,
Below link would be helpful in answering your question.
http://www.sapfans.com/forums/viewtopic.php?t=145395
pls assign points as way to say thanks

Upload free goods material from existing material

HI MM Gurus,
Please teach me how to upload free goods material. MAterial already existing.
For example i bought a 3 box of ballpen and I got 1 box for free. HOw will I upload 1 box of ballpen without cost?
I want to upload a different material one with cost and other is for the free goods.
Hereu2019s the scenario:
Example material: Material A
Cost:
actual cost example is P100.00
free goods (P.00- zero cost) - buy one take 1
Please help thanks!

hi
create PO for 2 line items of pens say its material A
material A qty 2
material A qty 1
for 2 qty give value
now for the 1 qty tick for free item (tick available in same item line in PO )
then do gr for all this items
the 2nd line item will be not valuated
so no need to do the invoice for item 2
regards
KI

P.O and GR for Free goods material

Hi,
I want to know how to create PO and GR for some material which we are receiving from vendor as free sample but that qty. we want to add in stock to issue that material with B.OM.
So how to set indicator in PO for free goods but we are paying the freight amount for that material.
regards,
zafar

Hi
Materials recived as free sample.
Example : Material :ABCD123456 you are reciveing 2 qty as free along with the 10 Qty of the material
You need to create two line item for material ABCD123456 - first with 10 qty and second with 2 qty ( free )
for the second line item tick Free Item once you tick this indicator in item overview.
Other way is PO Item detail go to Invoice tab *untick the Invoice reciepti.e no invoice* for the second line item . then system will not ask for invoice .that means that you need not to pay to supplier for this much amount .
Edited by: sunny on Dec 8, 2009 9:22 AM
Edited by: sunny on Dec 8, 2009 9:23 AM
Edited by: sunny on Dec 8, 2009 9:23 AM

BOM+Free Goods+Material Determination

Hi,
My company want to give free goods in Bill of materials.But system is not accepting that.How can we do that?
I am getting the same problem with Material Determination and Free Goods combination.When i configure material determination for a material which is having free goods system is not showing...any idea?
Points for sure.

Hi,
The constraints for free goods in SAP are as follow
Constraints
Free goods is currently only supported on a 1:1 basis. This means that an order item can only be
the source of one free goods item. This means that agreements involving relationships such as
'Buy material 1 and get material 2 and material 3 free of charge' or 'Order material 1 and material
2 together and get material 3 free of charge' are not supported.
Free goods is not currently supported in combination with material structures (e.g. product
selection, bills of material, variants with BOM explosion).
Free goods is currently only supported for sales orders with document category C (not for
quotations, for example).
Free goods is not currently supported for deliveries without reference to a sales order.
Free goods is not currently supported for make-to-order production, third-party order processing
and scheduling agreements.
Hope it helps you.
Regards,
Sarosh

Sales BOM & Free Goods Material

Hi There are 2 materials X & Y
For few distributors it goes as Sales BOM
1) if you enter 5 qty of X , it picks 2 Qty of Y also in Sales Order
i have Created Sales Order BOM for same.
item category group of X is ERLA
item category group of Y is NORM
For few distributors it goes as Free Of Charge materials
2) if you enter 5 qty of X , it picks 2 Qty of Y also in Sales Order
both are Free
Now in both cases material code X is same & i cannot change item category group of X as ERLA
How to achieve this?
Reg,
Antaa21

Hi,
Std functionality does not suppoort this . Pls refer SAP note 796926
Regards
Sanjay

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,

Giving BOM material as free good in Sales Order

Hi,
I have a business requirement.
I want to give a free good in Sales Oreder which is a BOM material.This should be possible by manually changing Item category for the line item in the Sales Order just like how we can change TAN to TANN in normal circumsatnces when we add free good material for any NON BOM material.
In standard functionality,the item category determined for this BOM material is TAQ but this item category field in Sales Order is non editable because of which I can not include the BOM material as free good in my sales order.
I have already defined one z Item category for free goods for this BOM material & want to use it in Sales Order.
Can you please suggest how this can be handled ?
Or is there any other work around by which will allow me to include BOM material as free good in my Sales Order ?
Thanks in advance
Regards,
BM

Hi,
Thanks everyone for the feedback.I agree with Samir Danish.It is a standard functionality of SAP which does not allow free goods for BOM material.
However, can someone suggest work around to deal with this issue.I mean if any one has been doing any work around for this issue then please let me know.It s becoming critical for me.
Regards,
BM

Free goods with material type = ROH

Hello,
i would like to give free-goods for a particular finished goods sales.
the free-goods' material type is equal to ROH.
when i maintain the free goods from VBN1, system tells me that "xxx Material is not defined for sales org xxxx with dist. channel xxx".
the pb is for material type ROH, i can't select sales view,
is there any work around except
1. changing material type
2. customizing and add view for ROH
Thanks

hi,
You have to extend the ROH material to the sales area of fineshed products
Goto to mm01 & extended teh material
then try with VBN1
regards,
Arun prasad

Different routes in free goods

Dear Experts,
Is it possble to have different routes in the items with free goods..?
Material B is given as free goods with material A. Both are from same plant and shipping point is also same. Both materials have different transportaion groups. In the sales order if I enter parent material (A) then it's free goods material (B) also get the same route. moreover this field for the B material is grayed out and i can not change it.
If i enter B material then it takes the route as per the customization done i.e. as per the transportaion group maintianed in the material master.
Is there any way to solve this..? or is there any enhancement point i can look out for..??
thanks in advance for your valuable inputs..
Regards,
Vaishali...

HI,
As my per assumption through Free goods, it is not possible either to determine or customize diffrent routes.
If It is essential business scenario try the following option, it will definitly work.
1. Instead of Free Goods please incoropoarte SD BOM in CS01 transaction.
2. Do the Item category determination accordingly and propose TANN for the second item i.e free goods. So that the price will not be charged and cost can accumulated at header BOM level.
3. During BOM explosion in the sales order system will determine the header route to line item routes. But the route proposed at BOM item level is in editiable mode.
4. You can incorporate the check in user exit MV45AFZZ at line item and propose the new route for the BOM line items.
Thanks & regards

Fields in Creation of free goods VBN1

hi everybody,
Can somebody expalin in detail the fields in creation of free goods(T-vbn1) like free goods quantity,additional quantity,documnet quantity and calculation rule....
Please dont copy paste anything form SAP help....I read that one......
I would appreciate if u explain with your sentence..
Will reward point if it helps.
Ghassan

Hi Gafoor,
Material
Material, for which free goods is to be
granted
Minimum quantity
Minimum quantity for which free
goods can be granted
From
Quantity of sales material
FGQ--- Quantity unit of free goods material
Free goods -- Quantity of free goods with reference to the quantity and quantity unit of the sales material.
AQU - Quantity unit of the free goods additional quantity
Rule - Calculation rule
Prorata
whole units
unit related
D -- Delivery controlling - it tells how you can manage the delivery of free goods with respect to the main item ordered.
Additional material - Additional material (only available for entry in exclusive free goods)
Hope it helps. Please reward if helpful.
Thanks & Regards
Sadhu Kishore

Free Goods Automatically triggered in PO

Dear all SAP experts,
I want to handle the free goods in PO. First, I have set the exclusive free goods through MBN1 for specified vendor & material and its normal gross price condition.
Just say BUY every 10 pc of Material A can get 1 pc of material B. And the min. purchasing qty for material A is 10 pc.
However, during PO creation, there is no new item(material B) pop up when I input the material A in 10 pc. ? WHY?
Do I miss some configuration steps??
Do I need to create a new condition type NR00 and assign it to calculation schema RM0002? I have tried but it is not working...
Thanks in advance for any reply.

Hello Boris,
You can achieve this with Inforeord maintainence (ME12).
Follow the steps:
- Go to ME12
- Give the Vendor and material combination'
- Go for condition data
- Select the validity range
- Click on "Gift box" icon, and execute the transaction
- it will give you the list where you can maintain the base material and the free goods material number in "Free goods" column
Hope this helps.
Regards
Arif Mansuri

Free Goods Determination - Exclusive

Hi All,
Am trying to enable Free Goods determination (exclusive). I have set up the free goods determination procedure and the condition record. However, when I create my sales Order for the original material, a new line is generated with the material that should be given away for free however the quantity field is not populated. Any idea as to what I may be doing wrong ?
Condition Record is as follows (VBN1)
Material - Material A (This is the material for which the SO is raised)
Min Qty - 2
From - 2
UnitFG - EA
add FG - 1
AddQtyUnit - 1
in % = 33 % (this is an auto field that is calculated)
Calc Rule - 3
Free Goods - 2
AddMatFrGd - Material B (This is the material that should be provided for free)
FGDelyCont - B
Your help is immensely appreciated.
Thanks in advance,
Imran

Hi Ramesh,
Thanks for your input. I did try your suggestion out, Calculation Rule 2, but it still does not work. I have attached the procedure to my document type.
When the SO is being created, an additional line item is generated with the free good material but without a quantity. how do i get it such that the quantity is also proposed on the new line item generated for the free good based on what has been defined in the condition record.
Regards,
Imran

Problem with posting free goods delivery

I need some help,
when I'm posting the goods issue in VL02N I'm receiving following error:
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
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

Posting in Free Goods

Hi all
Could you please tell me what and how to Account Posting Standard for Free Goods.
I want to Post Account for Billing Free goods to Cost of Sales. Please tell me how to configure.
Thank and Best regards,

Hi,
Have you configured the Cost of Sales Accounting by defining functional areas etc? If yes you must have defined cost center categories for functional area. Based on the cost center category or cost center you can create a substitution rule.
Thanks
Krish.

Free Goods Material Cost

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