Free of charge item processing - France business requirement

Hi,
For free of charge sales, the net value of an item is made to zero using free item category in the sales order and the billing with zero value is released to accounting.
One of the requirements for France is for Free of charge items, though the value of the product is zero, the relevant tax codes needs to be transmitted from SD to FI so that the tax value(zero) + tax code details will be available in the VAT reporting.
It looks the OSS notes 34526 - Delivery free of charge and value-added tax provides recommendation to resolve the above requirements. Have anyone implemented the solution based on this OSS note or used any other approach? The condition type Z002 provided as example in the note, reducing value of the net value instead of negating tax value.
Appreciate any feedback on this.
Regards,

Thanks for responding. Below are my responses,
How ( with which tables and fields ) you are developing VAT report in FI?.Why I am asking is,with tax code only we can track the tax amount in FI level.If the tax code related data is zero then how and what based on can we get that data in FI level to develop a report?.
I consulted the same with FI colleagues and per their response, an entry has to be made in the BSET table in order for the VAT report to populate the relevant tax code and values. As mentioned in the caption of the thread, it is for our French business requirement. Our business users indicated that when a product is sent as delivery free of charge, they wanted to show the details in VAT reporting (I am not an VAT expert, and not an expert with French laws). We have added tax codes for relevant taxes, including zero tax and followed the recommendation provided in the OSS note that I have mentioned earlier.
Why dont you want to develop a VAT report in SD module ?.Do you have any issues over there ( in SD ) ?
Our requirement is NOT to develop the VAT from SD module, however FI folks asked to pass the tax code/tax value from SD transactions (billing document to FI). Hence I raised this thread in SD area to see whether anyone has accomplished a solution for this similar requirements.
Thanks,

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In our Business, there is a process to give a Free item with mostly all the products sold online. In SAP, we will create regular sales order with 1 line item as TAN and other item category as TANN.
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Thanks for your reply. I checked that box and it becomes a free of charge item. Now when I do the MIRO that particular line item is missing. And when I do the F2 invoice for the third party order too that line is missing. My requirement is that I should be able to see in the F2 invoice as a free item. This is required for customs purposes.
I have also tried checking the box : " Final Invoice " in the PO for that particular line item. ANd the FREE check box is still there , and the F2 invoice has the free line item but it is showing the std price. I would like to see the price as $0.00.
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Please guide me on the followings.
I have a following requirement for determining the free goods in the sales order .We have two plants
1. Plant 1 is for valuated materials
2. Plant 2 is for Free of charge Items
Free of charge items which are given to the customers are supplied by the vendors and stored in the plant meant for the Free of charges items. But sometimes when free of charge items are not available in the stock then user take FOC item from the plant which is meant for the valuated materials and send it to the customers as a free of charge item.
User wants to transfer the cost of the FOC item to the main item when FOC material is taken from the valuated plant and sent to the customer.
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hi,
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regards
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Hi
If you are asking whether the congiguration is possible it is certainly possible in standards itself with alignment of condition types
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Hi
We have done this type of requirment.. several times.. This is easily possible ..
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LOOP AT po_items INTO ls_po_items WHERE net_price IS INITIAL.
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 APPEND ls_po_items_add_data TO po_items_add_data.
ENDLOOP.
Related link ->
Re: Final Entry/ Final Invoice Indicator to be checked Auotmatically
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Edited by: Yvonne Asiq on Apr 9, 2008 4:10 AM

Thanks for your reply. I checked that box and it becomes a free of charge item. Now when I do the MIRO that particular line item is missing. And when I do the F2 invoice for the third party order too that line is missing. My requirement is that I should be able to see in the F2 invoice as a free item. This is required for customs purposes.
I have also tried checking the box : " Final Invoice " in the PO for that particular line item. ANd the FREE check box is still there , and the F2 invoice has the free line item but it is showing the std price. I would like to see the price as $0.00.
Appreciate your help and time
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Hello!
I need to include free of charge item RENN (return order) into billing document. I am to use such item in output document.
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Regards,
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Free Of CHarge items are nothings but when you give rebate in kind. If you want to give away items for free then you use a itemm category TANN.
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Please award points if helpful
Thanks
Adi

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Thanks
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Hello Jane
Zero value item from SC to PO
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br
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Free of charge item processing - France business requirement

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