Free Goods Without Sales Order

Dear Gents
We have a scenario where goods are issued for free without a sales order,it's not considered sales,they just give some materials out from the stock as gifts&issue it on a cost center , there is no sales order,invoice,etc..is it normal then that the accounting entry passed would be Dr Cost Of Goods Sold Cr Inventory or what should be the correct scenario , Thanks.

Dear Expert,
When Goods are Given as gifts or Samples it becomes an expense for the company. So in my view it has to be shown as an expense.
The Accounting Entry would be :
Advertising A/c ....Dr
        To Purchases A/c ....Cr
Regards,
Shankar K B

Similar Messages

  • 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

  • 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 ?
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    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.
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    Thanks,
    Jignesh Mehta

  • Display Free Goods in Sales Orders

    Dear All,
    Is their a way to display the free goods scales of product on CRM Web UI, for example if Agent enters product, the system displays the free goods conditions so that the agent offers the scales to the customer.
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    Hi KishorThanks for replying..
    i have done the determination correctly. please find the below screens for free goods condition and sales order.

  • Free goods in Sale order

    Hi All
    We have invoiced few materials but the accounting entries are not generated due to price error. Here the product hierarchy is missing for the main item and the sub item(free goods). I am not able to edit the sub item product hierarchy in invoice or in sale order. Please give me the solution for this so that I will be able to update the product hierarchy for the sub item.

    Hi
    I just tested it and it seems standard behavior. When there is a sub item in sale order in free goods system is doesn't allow to change any material group, material description, condition group and some other fields. This is logical because this material is now linked to main item and during order processing user shouldn't be able to make changes in order for sub item which is free.
    Now what you can do is that if this is only for this one order you can delete the line items from sale order and enter product hierarchy in free good's material master data. System will fetch this information from there and it will be automatically filled.
    Another work around is that delete line item of free goods and add that material again. Now in Hl Itm (Higher Level Item) field give item number of main item which probably in your case will be 10. System will make this item free based on your item category determination settings and you will be able to make changes in product hierarchy field.
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  • Free Goods for sales order

    There are two sales order type standard(A) and promotion(C) defined in our business.
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    Dear Yadav
    There are two order type ZAA1 - standard  ZAA2 - promotion
              two item cateogry ZDC0 - standard  ZDC1 - free of charge.
    I made a test to change the item category assignment as ZAA1 with ZDC1 and ZAA2 with ZDC0.
    Still the free goods can automatically captured with standard order but promotion failed.
    So I think the difinition of item category is no problem and it may related to sales order type.
    My colleague told me it is unable to use free goods for the sales order which SD document category is not "C".
    I try to change the SD document categ from I to C for promotion order and the free goods appear.
    So the result is if i define the SD document category as I that I can't use function of free goods?
    Please advice
    Many thanks,
    Yang
    Edited by: Jun Yang on Nov 26, 2009 9:34 AM

  • TANN is not determining for free goods in sales order

    Hi All,
    i am using the free good scenario.i have done all the necessary below settings
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    2.added condition type R100 in the pricing procedure.with requirment 55 and base value 28.
    3.Item category assignment for free goods(i am using standard)
    4.free good condition record in VBN1 for inclusive and exclusive.
    5.in sales order i am giving correct quantity.
    But in sales order the second line item for free goods (TANN) is not determining.
    Kindly suggest where it went wrong ?
    Regards
    santosh

    Hi KishorThanks for replying..
    i have done the determination correctly. please find the below screens for free goods condition and sales order.

  • Goods issue without sales order

    Hello experts,
                       1)  Goods issue without sales order (movt type 251) in T.code "MB1A"*
                               Accounting entry:- Change in stock of Fin. Goods A/c    Dr.
                                                                          To Stock of Fin. Goods A/c
                       2) Customer Invoice through T.code "FB70"
                             Accounting entry:-     Customer A/c   Dr.
                                                                 To Sales of Fin. Goods A/c.
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    Ashwin

    Thanks a lot, but if you could please tell me what impact will on the balance sheet? will the stock be reduced after goods issue
    For eg;
             Change in stock of F.G A/c Dr.    200
                           To Stock of F.G A/c               200
             Customer A/c Dr.     200
                     To Sales of F.G       200.
    Is this correct? and i have assigned cost center to "Change in stock of Fin. Goods.
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  • How to realize the scenario of Inclusive Free Goods without Item Generation

    I include the condition type NRAB in my pricing procedure, but it shows me that this condition ignored(requirement 059 not fulfilled).
    why?

    Hi,
    Prerequisites
    In the free goods master record in the Free goods category field, select free goods category 3 (inclusive free goods without item generation).
    Follow the foll. procedure:
    In free goods master data maintenance, this new free goods type is dealt with in the same way as the inclusive free goods procedure described above.
    In order processing, you can not create order sub-items.
    For pricing in the main item, you need to create a discount. The standard system provides pricing procedure RVAA01 and condition type NRAB.
    Condition type NRAV is set up as follows:
    It does not determine a discount from a condition record. It uses condition basis formula 029 in the pricing procedure to determine a discount from the free goods factor.
    The condition receives the new pricing requirement 059 in the pricing procedure. This requirement checks whether free goods have already been determined.
    The condition type receives condition category f. This condition category ensures that the condition is redetermined every time the quantity is changed, since this can also mean a change to the free goods quantity.
    regards,
    Siddharth.

  • Without sale order Delivery creation

    Hi,
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    ->>>Two RAW material(ROH) then make the PO and GRN.
    ->>>Then Created the Finished Material(FERT)
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    ->>>Delivery type(LO-Delivery w/o ref)
    ->>>Ship to party(Here only we are mentioned the Customer)
    ->>> save the delivery
    When i make the POST GOODS ISSUE (PGI) the following error appear
    Message no. NA  KI235
    Account 315002   requires an assignment to a CO object
    You have not defined a CO account assignment for an account that is relevant to cost accounting.
    System Response
    Account 315002  is defined as a cost element.
    This means that you must always specify a CO account assignment.
    Procedure
    Enter one of the following CO account assignments
    Order
    Cost center / cost center/ activity type
    Sales order item (for a project or cost relevant)
    Project / WBS element
    Cost object (Process manufacturing)
    Network/ Network activities
    Business process
    Profitability segment
    Real estate object
    The posting row affected is 000, account 315002
    Kindly help in getting resolve of this error.
    Regards,
    T.Murugu

    Hi Murugu,
    Please go through the link given below. Hope it helps,
    http://www.sap-img.com/financial/requires-an-assignment-to-a-co-object.htm
    Regards
    MT

  • Inclusive Free Goods without Item Generation

    Can anbody explain 'Inclusive Free Goods without Item Generation' with an example.
    Thanks in advance
    Sunit

    hi,
    Prerequisites
    In the free goods master record in the Free goods category field, select free goods category 3 (inclusive free goods without item generation).
    Features
    In free goods master data maintenance, this new free goods type is dealt with in the same way as the inclusive free goods procedure described above.
    In order processing, you can not create order sub-items.
    For pricing in the main item, you need to create a discount. The standard system provides pricing procedure RVAA01 and condition type NRAB.
    Condition type NRAB is set up as follows:
    It does not determine a discount from a condition record. It uses condition basis formula 029 in the pricing procedure to determine a discount from the free goods factor.
    The condition receives the new pricing requirement 059 in the pricing procedure. This requirement checks whether free goods have already been determined.
    The condition type receives condition category f. This condition category ensures that the condition is redetermined every time the quantity is changed, since this can also mean a change to the free goods quantity.
    regards
    sadhu kishore

  • Freight Conditions not populating on free of charge sales order deliveries

    I need some assistance, please.  I have searched SCN, but have not been able to find a solution to my problem.
    We need to be able to charge freight charges on Free of Charge sales orders and am not able to get the charges to populate in the delivery.  We send the product for free, but sometimes need to charge the customer shipping charges.
    Below are steps I have completed:
    Created custom header condition of ZFRC
    Added to sales order pricing procedure as a manual condition
    (the charge will be updated from external system)
    Created Delivery Pricing procedure containing only my
    freight conditions (also manual condition)
    VTLA settings for item category KLN (free of charge item):Condition Order requirements – 1 Header
    VTFL settings for item category KLN:
    Pricing Type – D  Copy pricing elements unchanged
    Price Source – E  Delivery/Order
    There are times when the freight charges will be added to the sales order, but I also need to be able to add them directly on the delivery.
    When charges are added directly to the sales order, they will flow thru to the invoice without an issue, but when I try to add at the delivery level, they are not populating, which results in $0 invoice.
    I am not receiving any kind of error messages when trying to add the charges.
    We also have this situation with standard orders, but I am not having any problems with it.  I tried to mimic that set up for free of charge orders, but it is not functioning properly.
    Any assistance would be much appreciated. 
    Thanks!

    Hi Amitesh,
    Yes, the condition type used in the Sales Order is the same, ZFRC and it is also a header condition. 
    The condition analysis is not available in the invoice because there is no condition in the invoice.  Below are screen shots of the analysis from the LINE ITEM of the delivery note (there is not analysis available on the header) and the header details of the conditions from the invoice and the delivery.
    Line Item Analysis:
    Delivery Header Details:
    Invoice Header Details:
    Please let me know if you need further information.
    Thank you for your assistance!

  • COGS determination for Free of cost sales order

    Hi All,
    We have an issue regarding the COGS determination for Free of cost sales order. We created a free of cost sales order. But i need to know whether this sales order items will hit to COGS or not? If so how do i check whetehr its has been charged to COGS or not? and we have an issue raised saying thst one material in this sales order has not being charged to COGS. So please help me to solve this issue. Ihave checked the account assignment in GBB-VAX. And is there anyting to do with the settlement profile for COGS determination?.
    Thanks and regards
    Uday

    Hi,
    During PGI a material document and accounting doc gets created which would hit COGS account.
    You're talking about one specific sales order in which for one material it didn't hit COGS account or any order you're creating now with that material has an issue? If its a specific material which has an issue always..then something is wrong with that material master setup. Also you can go to the reported Sales order--doc flow to the PGI document and check the accounting doc and if its not posted..check the analysis why its not posted?
    And if its one off then I would suggest 2 options:
    1) Reverse the goods movement, cancel the delivery or if billing has already been done..cancel the billing as well. And re-do the cycle. This always ensures correct posting.--> Recommended option.
    2) Manual adjustment in FI.
    And settlement profile is Controlling concept..not sure you would get any help on this in this forum.
    Regards
    RS

  • Free Goods for QT order Types

    Can I use automatic Free goods determination for QT order types.
    however i am using it for OR right now and i have done the related configuration for QT as well but system is not detmining Free Goods for QT order types.
    I have also maintained the below entry in "Determine Item Category for Free Goods Item"
    Sa Type   ItCGr         Usg.     HLevelItCa  DfltC
    QT            NORM      FREE     AGN           AGNN

    Hi
    Std SAP itself doesnt support Free Goods at quotation level
    Standard SAP supports Free Goods at quotation level and hence the item categories AFNN and AGNN are provided in the standard SAP. But,  the Automatic determination of Free Goods is not possible for SD documents under category other than 'C'.
    In your scenario...since the automatic determination is not possible, think about handling the functionality manually or through user exits.
    Thanks,
    Ravi

  • Free goods in return order

    Dear All,
    We are creating return order with reference to billing document.Billing document has free goods as second line item .When I create return order only main item is getting referenced not the free goods .
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    Needed quick reply please... gone thru few sdn links .but all with confusing  solution .....with all setting suggested I could not achieve 
    Kindly guide.........
    Umesh Karanth

    Dear Sir,
    I have maintained  for the combination of TANN TO REN    as follows:
    copying requirement for VBAP --153
    copying requirement for business data--104
    copying requirement for VBPA---004
    copying requirement  --303
    Pricing type --D
    But with this free goods are not getting referenced to return order. Is there anything I missed ?? pls guide
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    Umesh Karanth

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