Free goods related

Hi ,
        This is regardsing Free goods related issue
       " i have 3 types of materials(A,B,C)
           1.If A sells quantity of 10, C will come as free(zero price)
           2.And if B sells quantity of 10 again C will come as free (zero price)
           3.And also if A(5) & B(5) together sells quantity of 10 C will come as free.
Please provide the suggestive solution.

hi,
1 & 2 case will work, but the 3rd Case will not work. Please note the following
"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: With material 1, material 2 and material 3 are free of charge or If material 1 and material 2 are ordered at the same time, then material 3 is free of charge.
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."
CHAN

Similar Messages

Free Goods related Condition Types

Hi All,
I actually searched Google and the SDN forums if this was already asked but could not locate. Therefore, I am asking this now.
1. Does someone have a Category-wise list of Condition types such as Condition types that fall under Discounts, Freight, Taxes, Surcharges, etc.,
OR
2. Does someone have a list of FREE GOODS related Condition types?
Some that I can think of are:
R100
NRAB
TIA,
Raj (SAP SD_Newbie)

HI Raj,
You can get all this details from Table: T685A
retireve the cond types wrt: COndition class & condition category based on your choice.
Please provide your requirement, if you are looking other than this.
Regards,
Reazuddin MD

Free goods related requirement

When free goods are determined in sales order, the free good line item data is uneditable. We have a requirement to change the inco terms & tax classification for free goods line item in sales order... Please suggest if any one has worked on such scenario... Or how this can be achieved

Hi,
If the free goods are determined automatically using the condiiton recors from VBN1 ( either inclusive or exclusive) then you cannot change the free good item
May be you have to go with exit modification, if it is really required
If you want to change the item of free goods, you have to manually force using the high level item cateogy
regrds
santosh

Free goods vs financial realated issues -?

Hi experts
Please some one can help me to understand free goods related financial issues.
Ex:
If I am giving for materil 1 quantity 10 ---> materil 1(Inclussive) quatity 2 free.
so how the financial accounts will be adjusted for the material 1(in my case quatity 2) --?
Thanks
Kris

Hi,
Free goods has the following limitations:
- 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: With material 1, material 2 and material 3 are free of charge or If material 1 and material 2 are ordered at the same time, then material 3 is free of charge.
- 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.
4.6x
Not all Sales Order can be used for free goods determination. You have to check the SD document category if it does not work. Only category 'C' are supported. Check transaction VOV8.
Assume that you want to configure an inclusive FREE goods routine. Customers must order a minumum quantity of 5 before any free goods can be assign. For every quantity of 3, the customer will be given 1 free goods.
WC07 - Maintain Number Range Intervals
e.g.
No   From number       To number
01    0000010000         0000099999
IMG -> Sales and Distribution -> Basic Functions -> Free Goods ->
Maintain Access Sequences
New Entries
Acsq
NA00
Save
Maintain Condition Types
New Entries
Ctyp   Name             AcSq
FREE Free Goods    NA00
Save
Maintain Pricing Procedures
Procedures
New Entries
Procedure   Description
FREE           Free Goods
Select Procedure FREE then click Control data
Step   Cntr   Ctyp
10       10      FREE
V/N6 - Activate Free Goods Determination
Assign Order Type OR with Document Procedure A with Procedure FREE
VBN1 - Create free goods determination
e.g. FREE inclusive
Material Min qty   From   are free good   Calc Rule   Free Goods
                       5           3                1                      1                1
In this example, if you create a Sales Order for a quantity of 10, SAP will prompt you 7 as the customer order qty and 3 will be free. Customer only pay for the 7 quantity.
Hope this may help
Reward if it helps
Regards
Prasanna R

Related to Free goods with Excise Duties

Saogurus,
In my client place some time they get a sample from the Vendor in which he never sends invoice for that sample but sends excise invoice along with this sample, for whch we never take credit for such excise duties but it suppose to be add to tthe Material cost.
in SAP :- Where i created Purchase order and marked as free goods and in the inovice Tab i mentioned tax code which are no credit in nature,at the time of GRN, wtere enter the value maually at excise item level but after saving the GRN, why the system posting the value in the register(which suppose to be not). the condtion types which are used in the tax code are
JMIP,JMX2
JEC2,JEX2
JSEI,JHX2.
Thanks
Praveer

Hai,
Maintan the material as a non cenvatable in J1ID - Mateiral & Chapter ID combination & try again.

Related to "Free Goods"

Dear SAP Experts,
How to configure a scenario where :
1 Scene: Sales without free goods:
Earlier company was selling a shaving cream 150gms for 100 INR (MRP) and was paying some 10% tax to government.
2 Scene: Sales with free goods:
Now company wants to give 20 ml shampoo sachet along with the shaving cream pack of 150 gms.
On both the products company has to pay 10% tax to government.
Product                   MRP        Tax
Shaving cream         100           10%
150 gms.
Shampoo                 10             10%
20 ml
Earlier company was managing the same in 100 INR.
Now they have to give free goods too, so how it can be managed in SAP.
what are the configurations required to do in free goods determination procedure including pricing procedure.
Please tell some options ?
Thanks in advance.

Hi Anubhav
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 is NA0001
Copy as ZA0001
Copy all
Save
The Pricing procedure NA0001 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

The relation between free goods and taxation

Dear all;
I have a problem when i create free goods condition and it's working.
Here is the Business Scenario....
my condition if the customer purchases from material XXX 10 EA we should be given a material XXX one unit free (free goods) and when i create sales order and enter this material XXX 10 a with item category "tan" it will create automatic new line for the same material one a but with item category "tann"
and for the first material we have a net value and tax amount it's normal but in the second line with free goods zero net value and zero tax.
but i need in free goods condition zero net value and must have to value in tax amount .
Can anyone can come out with a solution.
thanks & best regard
Mohamed Helmy

Dear Rajesh;
ok if i don't use standard order OR for free goods, which one can i use.
Regarding pricing procedure for free good "NA0001" only i have one
Condition type "NA00".
I am sorry i didn't get you .
Could you give me more detail?
Thanks & Best Regard
Mohamed Helmy

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 Should not down MAP -

Hi, MM / FI Gurus!
We have a scenario where Vendor offers a Discount in Kind. For e.g. For Order Qty over 1000 Pcs vendor offers 10 Pcs free over each 100 Pcs. Assuming PO price as 10 units then for 1200 Ordered Qty vendor delivers 1200 + 120 = 1320
In PO the Free Goods are determined correctly (in either cases whether Inclusive / Exclusive). Order quantity in first line has a gross price determined. The second line tiem in PO has Free Goods Quantity determined as per procedure for Discount in Kind, with zero price.
When we do GR the Inventory is up by Order Quantity + Free Goods Quantity.
Automatic posting in MM determines the GL correctly.
Dr Inventory - Drugs and Meds: 128010 Amt 12000 Curr
Cr GR/IR Clearing:                               200060 Amt 12000- Curr
As expected MAP goes down due to Free Goods (Zero Price)
Client wants to up the inventory for by Order Qty + Free-Goods Qty but this should not down the MAP as well.
I have activated Direct Posting to G/L Accounts and Material Accounts for Incoming Invoice
Idea was to Credit Gross Price on the Free goods Quantity to Inventory - Drugs and Meds: 128010 to make up the MAP in material master and Debit the same amount to Other Income as follow:
Dr GR/IR Clearing: 200060 Amt 12000 Curr
Cr Vendor Account:                          200001 Amt 12000- Curr
Dr Inventory - Drugs and Meds: 128010 Amt 1200 Curr (Free Goods)
Cr COS-Drugs & Med:                         500100 Amt 1200- Curr (Free Goods)
However we cannot post Gross-price for Free goods Directly on the same GL(which has Automatic posting Checked) to Up the MAP (which falls down because of free goods having zero price).
Is there any way in FI to have both Automatic and Manual posting for the same GL?
Also I am not sure that after we do this if MAP will be Up.
Is there any other way may be by using Movement Type for such Movements?
Thanks
Atul Sonalkar

Hi Atul
Create PO only for the material for which you are going to pay your vendor.
ie., for 1000 units @ Rs. 12 = 12000. Post GR.
Now you are getting 100 units free. Don't enter this in your existing PO. Create a new PO for the free goods and post GR.
Your MAP related problem will be solved.
Regards
Rajesh
Do reward if this is useful.

Free Goods with pricing condition (Urgent)

Hi MM Expert,
we have a probleme with free goods. because in PO item of free goods, there is no condition management (no Invoice entry) but we should manage some pricing condition for the item (spécifique condition relative to transport, ...).
so are the any way of managing the expenses annex condition(transport charge, customs clearance charges,) for the free goods in an item of Purchase Order ??
thank's in advance.
Said

Hi,
This is not possible to maintain the condition s for free goods because while creating the PO for free goods by selecting the free goods tad at item level, There is no Condition tab at Item detail .means you are not able to mainatin conditions.
If you want to maintain the conditions ,you have to treat as a Normal scenarios .
Regards
Sanjay L

Free goods PO query

Hi Gurus,
Sometimes we imported the goods as free. Although we did not pay anything to the vendor, we should pay custom and transportation expense to the related vendor.During PO creation in SAP, we are entering custom and transport expense as condition and we are selecting related vendor in the condition tab.
Inthis step , when we selected PO line as pay free, system deleted conditions automatically.
Can you please advise how to make payment of custom and transportation expense in case of free goods??/
Regards,
Subbu

Hai,
To my knowledge you cannot enter conditions for free goods ,but for that we can enter the customs and transportation charge
refering that PO in invoice verification as planned delivery charges are to directly to GL account.
Regards

Free Goods Problem and User Exit if needed in Sales Order

Hello All,
The problem is related to Free Goods in Sales Order which is given with an example -
We have maintained Free Goods ( T Code - VBN1) in inclusive scenario which is as follows -
For 210 PAC (Pack) of Material A 18 PAC Free.
Where 1 PAC = 20 BT (Bottle) and 20 PAC = 1 CV (Case Pack)
In the material master of Material A the Base Unit Of Measurement (UOM) = PAC and Sales UOM = Blank so that we can use any conversion factor maintained for the material.
The conversion factors maintained for Material A are as follows -
1 BT = 1BT
1 PAC = 20 BT
1 CV = 20 PAC
Now when we are raising sales order for 11 CV the free goods are not generated in the Sale Order.
Again if we maintain the Sales UOM in CV and raise the sales order it is showing :
10 CV as main item and 1 CV as Free which is wrong because in the conversion factor we have already maintained 1CV = 20 PAC , Whereas in the inclusive scenario it is given 11CV = 210 PAC and 210 PAC = 18 PAC is free.So in any case it is taking into account 2 more PACs.
Please suggest what need to be done in this case in respect of User Exit or Source Code in ABAP if needed.
Thanks & Regards
Priyanka Mitra

Hello Priyanka Mitra,
We are facing a problem same as you.
How did you solve this problem?
We are very glad if you teach it concretely.
Please advise your solution to us.
Thanks.

Free Goods Problem in Sales Order

Hello All,
The problem is related to Free Goods in Sales Order which is given with an example -
We have maintained Free Goods ( T Code - VBN1) in inclusive scenario which is as follows -
For 210 PAC (Pack) of Material A 18 PAC Free.
Where 1 PAC = 20 BT (Bottle) and 20 PAC = 1 CV (Case Pack)
In the material master of Material A the Base Unit Of Measurement (UOM) = PAC and Sales UOM = Blank so that we can use any conversion factor maintained for the material.
The conversion factors maintained for Material A are as follows -
1 BT = 1BT
1 PAC = 20 BT
1 CV = 20 PAC
Now when we are raising sales order for 11 CV the free goods are not generated in the Sale Order.
Again if we maintain the Sales UOM in CV and raise the sales order it is showing :
10 CV as main item and 1 CV as Free which is wrong because in the conversion factor we have already maintained 1CV = 20 PAC , Whereas in the inclusive scenario it is given 11CV = 210 PAC and 210 PAC = 18 PAC is free.So in any case it is taking into account 2 more PACs.
Please suggest what need to be done in this case in respect of SD / ABAP(if needed).
Thanks & Regards
Priyanka Mitra

Yes Priyanka
This is a very interesting and a challenging issue or question
I think because of the prorata calculation type the extra 2 units is coming
This logical error has happened to me too
Inclusive 210 units means we have defined as 192 + 18 in VBN1
But the system determines the free goods in sales order as 190 + 20 that means there are 2 units which are going free than what has been maintained as condition record
But system converts our logic into its own thro that calcultion type PRO RATA which is the main culprit here
So it requires ABAP help
This qn should be awarded points (unfortunately i am not able to do so)
Regards
Raja

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 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

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