Free of charge material

I am getting some free samples from vendor of one material which is I am using regularly and material has certain cost in material master.
I know I can get it by creating PO with free of charge indicator.
But then when I will receive it and I want to issue it to some project or cost center, system is going to post accounting document even though the material I receive is with zero price.
Can anybody help to get solution of this problem ?

I think u can fix it with having "non-valuated material" in place.

Similar Messages

Re: FOC- FREE OF CHARGE MATERIAL IN CONSIGNMENT

Dear Experts,
Good Morning to you,
When i am doing fixing the stock code for a (FOC-FREE OF CHARGE) material in Consignment when raising Sales order till end of key-in all fields there was no errors but when i was saving the Sales order it was saying an error of SRS AMOUNT HAS NOT BEEN SPECIFIED IN CONSIGNMENT FILL-UP.
Awaiting for your golden replies & points will be assign for useful answers.
Thanks in advance,
KUMAR.B

Dear experts,
I was waiting for ur golden replies.
Thanks you,
KUMAR.
Edited by: Kumar B. on Jun 27, 2008 10:25 AM

Sales and deliver free of charge material

Hi,
I want to create sales process for free of charge materials, the factory wants to deliver some material for test without any price to another companies.(I set pricing procedure for material with sales price and tax)
How can I set the pricing procedure for it and how I can assign sales order type to this pricing procedure? I want system recognize which pricing procedure is for sales process and which one is for free of goods sales.
Thank you.

Hi Lida,
The free goods process is possible and the procedure in terms of Process understanding can be made from the [Business Process Understanding - Free Goods|http://help.sap.com/bp_bl603/BBLibrary/Documentation/110_Scen_Overview_EN_PK.ppt#519,4,Scenario Overview u2013 3]
and the Configuration setup and the mapping in to SAP can be viewed in the [Config settings in SAP|http://www.sap-basis-abap.com/sapsd021.htm]
Regards

Change GL account third party for Free of Charge material

Hi All,
Can you please help me with the following flow:
We have a SD order with Free of Charge item.
It is third party processing: vendor send directly to customer without
posting GR in our company.
The COS is posted to a wrong G/L account. How can I change the G/L account, but only when a FOC item is processed?
Thank you,
Eric.

Hi Eric,
Although I do not have much details about your business process requirement, I think you can try creating a new Movement type for such spl cases, create a new Transaction/Event key and assign it to this Mvt. type. If the FOC Materials are few, then you can also think of creating a separate Valuation Class for such materials and use this Valuation Class in OBYC.
With these settings when you use the new Mvt. type your desired GL accounts will be posted. Check before finalising your action plan.
Please let me know if you have any problems.
Hope this helps.
Cheers
Keshav

I cannot do a GR for UNBW material, Free of Charge, for Intercompany PO.

While trying to do a GR for a UNBW material Free of Charge from an inter-company STO, I am getting the following error msg:
M7226 = " Update control of movement type incorrect (entry 101 _ X _B).
I get the same message by doing the MIGO GR from PO or from MIGO GR from Outbound Delivery.
I checked the table T156S and the required entry is missing:
Movement Type = 101
Update Value = blank
Update Quantity = X
Special Stock = blank
Movement Indicator = B
Receipt Indicator = blank
Consumption = blank
Scenario:
Material Type UNBW is Quantity Control Only (No Cost).
The PO Item has Account Assignment 8 (I/C Free of Charge)
The vendor will not charge any cost (Totally Free of Charges)
The field FREE is checked in the PO item
Note:
If in the GR/MIGO I enter a dummy value of $0.01 the document is posted. Of course the value posted is not correct because we do not have to pay anything to the vendor.
I created a Customer Note to SAP, but they insist that the problem is in configuration.
What could be the possible reason and what is the solution for this error?
Thanks,

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
Thanks

GR for a UNBW material Free of Charge

While trying to do a GR for a UNBW material Free of Charge from an inter-company STO, I am getting the following error msg:
M7226 = " Update control of movement type incorrect (entry 101 _ X _B).
I get the same message by doing the MIGO GR from PO or from MIGO GR from Outbound Delivery.
I checked the table T156S and the required entry is missing:
Movement Type = 101
Update Value = blank
Update Quantity = X
Special Stock = blank
Movement Indicator = B
Receipt Indicator = blank
Consumption = blank
Scenario:
Material Type UNBW is Quantity Control Only (No Cost).
The PO Item has Account Assignment 8 (I/C Free of Charge)
The vendor will not charge any cost (Totally Free of Charges)
The field FREE is checked in the PO item
Note:
If in the GR/MIGO I enter a dummy value of $0.01 the document is posted. Of course the value posted is not correct because we do not have to pay anything to the vendor.
I created a Customer Note to SAP, but they insist that the problem is in configuration.
What could be the possible reason and what is the solution for this error?
Thanks,
Rafael

There is no std way to achieve what u required
You will have to use badi
MB_MIGO_BADI
and in that u will have to use interface
LINE_MODIFY Add / Change a Line (GOITEM)
and
CHECK_ITEM Check Item Data of Goods Movement
you will have to create a table where in u will have to assign gas material code to gas cylinder material code and the conversation factor
conversation factor will be require if u want the system to calculate the number of cylinder on qty of gas
if not u can enter the qty in MIGO only
thus in badi u can write a logic where in if the material is in that Ztable and movement type 101 run the badi to add the line with material code in ztabe for gas cylinder for gas material code. and pass required entry to add the line
hope if u give this logic to abaper he will write a code for u
and ur issue will be solved
Hope this will solve u issue

Moving average price in case of goods receipt with free of charge

Hello everyone,
Need some inputs......
Sometimes we receive materials from suppliers free of charge (e.g. warranty replacement) u2013 moving average goes down u2013 worst case 0,01 EUR/piece. This causes problems in government reporting and export documentation EX1 and clearance/pro-forma invoice) for deliveries to field engineers (Order type ZIS1, ZIS3 u2013 item cat. ZICA), because moving average price is used for the values in government reporting and on the invoices. In government reporting and on invoices we need to state a true value of the part.On the other hand, the value warehouse stock is depending on the moving average cost as well.Could you please let me know, how to handle such receipts from the supplier to have a correct stock value and correct values on invoices and government reporting?
Thanks
Deepthi...

Hello Deepthi,
It depends on your company policy. If you want to valuate the material along with the material purchased handled in moving average price, free consignment will bring down the MAP for the material.
In that case, you can revaluate the material to the original price in MR21 transaction.
If you are not going to handle the materials received free of charge along with the purchased material, you can go with another material code, with non valuated material type.
But i guess, no company will be asking for another material code. So go for revaluation after the receipt of free consignment.
Regards

Free goods determination & Free of charge Delivery

Hello Gurus,
Actually I have couple of queries regarding free goods.
1) Can we manitain free goods for BOM
Business Scenario - I have created a BOM "ABC" at Main item level (ERLA) with components B, C and want to give 2 different Items X, Y as free goods other that sub components. So is it possible to assign TANN itm catg with TAQ, will it work ? what will happen with taxes for free goods?
Tool Kit, ABC----(TAQ)
                 B -
(TAE)
                 C-----(TAE)
                 X------(TANN)
                 Y------(TANN)
if not possible what will be solution to map the above scenario ?
2) How to maintain the Free of charge pricing procedure?
                       I maen what condition types should we maintain into the free of charge pricing procedure control data (V/08)? If there is a standard pri pro for Free of charge delivery plzz Suggest to me.

Hi,
1. Application of Free Goods in BOM is not posible. Moreover Free goods attract zero value only the material document is updated.
I can suggest you to use the process "Rebate of a Kind" where in you can manually enter the subproducts as free goods only thing is you will have to mention main item lineno in the higherlevel item categor of the sales order.
Though i tried long back the requirement you need, it will not work the best way is to give manually in SO.
2. Free sample maintain seperate process i.e, Document Type, item category Pricin Procedure.
For Configuration please check Img -->SD --> BF --> Free Goods --> Condition Technique free goods
-- Better you maintain "C" Document type while doing determination.
Regards
Sathya

Free of charge delivery and free goods

hello,
I need clarification on the following.
There are two different things. one is free of charge delivery and the other is free goods.
1) for free of charge delivery, order type is FD , I think we have to maintain TANN(with pricing as B,100% discount). This will trigger R100 as 100% discount condition in pricing procedure. Am i right ?
2) The other is Free goods determination(OR order type). where free goods condition records are maintained and gets determined in sales order. for this scenario, TAN and TANN (100% disc) is maintained in item caterory determination. I think in this case NRAB is required and not R100 in pricing ? am i right ? ..
regds

Hi,
Free of charge delivery -
Free of charge delivery is used mostly when you provide samples to customer
http://help.sap.com/SCENARIOS_BUS2004/helpdata/EN/31/923341431ef723e10000000a155106/content.htm
Free goods -
It is mostly used when you are providing something free when customer purchase of one Item/material
http://help.sap.com/SCENARIOS_BUS2007/helpdata/EN/b7/4a893a8729337be10000000a11402f/content.htm
Kapil

Free of charge goods.

Hi All,
I have a requirement with free of charge functionality.
It needs to be possible to assign free products retroactively for a certain time period and calculate the number of free products by the number of products ordered in the given period.
how do I achieve this?
Please reply
Nilesh

hello, friend.
please note that you have:
1. free-of-charge order, which is a type of sales document to deliver materials without cost to the customer
2. free goods, to be given when the customer orders a certain quantity of materials
which of the above functionality are you more interested in?
for the first, it is a matter of defining an order type based of the free-of-charge order type. this order type normally is automatically blocked for control purposes and can be released by an authorized party. you can create this order with reference to another order (e.g. in case of replacement of defective or lost goods). the procedure of creating a free-of-charge order is the same as for the standard order, using t-code VA01. you then deliver/pick/post goods issue the same as for standard orders as well.
for the second functionality, you first need to activate free goods in IMG, then you can create free goods condition records, either exclusively or inclusively (e.g. buy 10 of Material A, you get 1 free Material A; or buy 5 Material B, get 1 free Material A; or buy 11 of Material A, 1 will be free and only 10 will be charged), by doing t-code VBN1. you specify whether the scheme is exclusive or inclusive, the free goods plan and the duration of the campaign.
regards.
p.s.
again, with the second functionality... if you create free goods condition records now, this will not affect sales orders already created and saved (free goods will not apply). so if you want to grant free goods retroactively, you either have to do free-of-charge delivery with reference to the previously created sales order, or you need to change the sales order by deleting the ordered item and re-entering it so that the free goods functionality will work (assuming that the order document date falls within validity period).
Edited by: jonathan yap on Oct 1, 2008 12:30 AM

Free-of-charge subsequent delivery

Hi experts,
"If the customer is to receive replacement goods, do not create a credit memo. You can enter a reason for rejection for the appropriate items in the return. You then create a free of charge subsequent delivery with reference to the return in order to send the replacement goods to the customer. "
(It comes from SAP help
http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm).
Got some questions about the above. Pls help to solve. Thx.
Q1: Does the process match SAP statement above, sales order -> outbound delivery -> invoice -> return order (to be rejected after PGR for return delivery) - return delivery (PGR) - free of charge subsequent delivery (to be created with reference to return order) - delivery (no invoce to be created)?
Q2: If the process is correct, how can the financial balance the value of returned goods, sales cost? Is it through the replacement goods? In my previous understanding, it's the must to create credit memo because return delivery has PGR.
Q3: What order type is used for free of charge subsequent delivery? It seems SAP help mentions FD while some one mentions SD.

Hi Cathy,
>Q1: Does the process match SAP statement above, sales order -> outbound delivery -> invoice -> return order (to be rejected after PGR for return delivery) - return delivery (PGR) - free of charge subsequent delivery (to be created with reference to return order) - delivery (no invoce to be created)?
> (to be rejected after PGR for return delivery) -
What does this mean???
Std Process is
Sales Order - Delivery - Invoice - Return Sales Order (wrt sales order / billing document) - Return Del. (wrt Return Sales order ) - PGR - Credit Memo wrt Return Sales Order
OR (If not to create credit memo)
Free Of Charge Sub. Deli. Doc. (which is sales doc.) wrt Return Sales Order / Original Sales Order - Standard Deli.(LF) - Proforma Invoice
>Q2: If the process is correct, how can the financial balance the value of returned goods, sales cost? Is it through the replacement goods? In my previous understanding, it's the must to create credit memo because return delivery has PGR.
It is not must to create credit memo unless the customer has asked for.
Eg. if you have sold material worth Rs. 100/-, invoice is created. Here customer a/c is debited. Now, you do return sales order - return delivey. Till return delivery, no accounting posting take place as far as customer is concerned. (Material doc is created after PGR and then a/c doc is created where cost of goods is posted) So after PGR, if the cust wants, either you can create Credit Memo where you return the money (in this case Rs.100) to customer that he has already paid or you deliver the material free of charge.
Only in case of Credit Memo, accounting takes place where customer a/c is credited. So there is reverse posting
For free of charge del. there is no accounting posting taken place
>Q3: What order type is used for free of charge subsequent delivery? It seems SAP help mentions FD while some one mentions SD.
Both these Sales Doc. types are available in Std SAP system
SD - is used for Subsequent Delivery Free of Charge that is created wrt Return Sales Order / Billing Document
FD - is used when you want to give any free sample to the customer. Therefore it does not have any reference
Hope you get some inputs
regards,
Sagar

Free of charge Item determination in SO with cost and revenue transfer

Hi,
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.
Similarly when there is no stock of material in the valuated plant then user take the same material from the Plant2(Non-valuated) and send the material to the customer. In this case user wants to have the revenue posted in the respective G/L Account.
But it should also appear as a free of charge items in the billing document.
Regards
Rahul

hi,
transfer of cost from sub item to main item is configured in the delivery to billing copy control for the main item. go to VTFL > select the required item cateogry > here at the bottom you will find a check box Cummulate cost. Tick it.
Not really what you meant COPA purposes. But the pricing conditions are mapped to COPA value fields at KE4I transaction.
regards
sadhu kishore

Free of charge

Hi,
I'm a bit confused about blocking free of charge orders.
I know there are free of charge Sales Doc categories and you can block them. If you create a free of charge sales doc do you still have to put the item category as free of charge for the item to be free of charge? And vice versa can you put a free of charge item category in a normal sales document?
I also know there are item categories which give 100% discount e.g. TAN but my company has TAN set to Pricing X in TVAP so does that mean TAN not a free of charge category??
Using TVAP I can see 7 Z categories using Pricing B i.e. 100% disocunt. Does that mean that these are the only item categories that can be used for free of charge goods?
There appears to be several free of charge sales doc types configured but not blocked, to ensure all free of charge items are blocked for delivery do you block at item category for ones with pricing of B? If so how?
Thanks for your help,
CT

Hi
The TANN item category says, the pricing is B - which says, the Item is priced but 100% discount.
Here in sales order at line item level for the material with item category TANN - if you observe in the conditions tab - the pricing will happen as that of the main item or normal item and at the end of it 100% discount will be determioned with the help of the condition type R100 in the pricing procedure. The requirement for this condition type R100 reads the pricing field in the item category and if the value is B then determines the value as discount.
Regarding the categorisation of the sales document types...there are four categories,
1. Pre sales - Inquiry and Quotation
2. Sales - Standard Order, Rush Order, Cash Sales, Deliver Free of Charge
3. Outline agreements - Contracts and Scheduling Agreements
4. Complaints - Returns, Cr Memo Request, Debit Memo Request, Subsequent Delivery Free of Charge
Thanks,
Ravi
Please close the thread if you feel that your question is answered.

Free of charge item tax calculation

Hi all
I have a requirement for VAT calculation for free of charge item in sales order.
For these items (item category TANN) with VPRS for internal price condition and MWST for VAT tax condition i'm able to calculate the value for VAT accounts purpose.
Is there any exit that enables me to create this? Will it be in SD invoice registry?
thanks in advance

Hi
If you are asking whether the congiguration is possible it is certainly possible in standards itself with alignment of condition types
Normally we will place condition type MWST after R100
In this case MWST should be placed before R100
It is the same as suggested by Mr. Murali but the important thing which he missed out is After placing R 100 after MWST you have to Fill up FROM and TO for condition type R100 excluding the step nos of MWST
Suppose PR00 is step 10
Then it should be MWST Step 20
Then R 100 step 30 For this R100 you should fill up from and to as 10 and 10
Now when a material is Rs100 and 10 + 1 free is there and if the order is for 10 units and if the tax ix 4 %
then the nett value will be Rs 1000(10x100)
tax value will be Rs 44 (tax is calculated for 11 units at 4%)
Regards
Raja

How to do billing for Free of charge delivery item

Hello Gurus ,
We have some requirement: The requirement is this company is delivering the goods to customer in free of charge, but want to do Billing is it possible.
But as per my knowledge it is not there in standard , I checked in system .
looking for your inputs .
Thanks in advance
Regards
Venkat

Hi Venkata,
This is very usual in Brazil because we have a Legal Requirement that all goods must have a Eletronic Nota Fiscal issued and following along with the goods. And the Eletronic Nota Fiscal is generated along with a Billing. Also, usually companies want to account this billing for a give Cash account, so they can cost someone for the free goods later.
Here is what usually changes. On sales order we require a Cost Center. This also may help modifying your OBYC for the free of goods material document (they will be set as consumption since there is a cost center associated with the transaction). We created a billing document type pointing to a z account document type (ie ZG) - to avoid mixing them along with the RV documents. Also, we inform a account key for cash allocation (the billing will not be accounted for a customer, but actually for a cash account). To do this you have to fool SAP informing an account determination cash settlement, which will allow you to inform the Acc.Key-cash alloc. field - after remember to blank the acc.det.cash settl.
It is not that easy, but works fine.
Regards,
André L L Dantas

Free of charge material

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