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

Similar Messages

Free.Of Charge Sub.Delivery.

Hi Gurus,
Here Iam doing Free of Charge Subsequent delivery( Doc Type SD) With reference to the Returns Order.
While Iam doing this Free.Of Charge Sub.Delivery, The system is showing an error"The system has Collected messages (see log)".
Gurus Please give sol. in detail.
Regards,
vas.v.s.

Hi,
Please check the log what it says .
Have u maintain Copy control between Return Order RE and Free of charge delivery order FD . In TCode VTAA.
Please maitain following setting at header level
Data Transfer 051
                    101
                    001
Copying requirement 001
At item level
Data Transfer 151
                      102
                      002
FPLA               0
Copying requiremnet 304
Hope this help

Free of charge thirdparty delivery

Hi,
Please suggest me any of you worked on Free of change or sample orders through thirdparty order process. if you give me impacts and How accounts get post GR/IR and it should not generate Invoice for customer.
Please suggest SD-MM, SD-FI costcenter posting, which type or financial accounts get hit (debits and credits) any implications.
JACK

As suggested earlier Create new Item Category ZTAS, copy of TAS & make necessary modification for Billing Relevance & Pricing.
http://help.sap.com/bp_bblibrary/500/html/J54_ThirdPartyWSN_EN_IN.htm
http://help.sap.com/bp_bblibrary/500/html/J55_ThirdPartyWOSN_EN_IN.htm
Customize the third party sales in summary:
1. Create Vendor XK01
2. Create Material Material Type as "Trading Goods". Item category group as "BANS".
3. Assign Item Category ZTAS to Order type that you are going to use.
4. A sale order is created and when saved a PR is generated at the background
5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO
7. Goods receipt MIGO
8. Goods issue
9. The item cat ZTAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.
10. Billing (Only If required)
SD - 3rd party sales order Create Sales Order
VA01
Order Type
Sales org, distr chnl, div
Enter
Sold to
PO #
Material
Quantity
Enter
Save
SD - 3rd party sales order View the PR that is created with a third party sales order
VA01
Order Number
Goto Item Overview
Item ->Schedule Item
SD - 3rd party sales order View the PR that is created
ME52N
Key in the PR number
Save
SD - 3rd party sales order Assign the PR to the vendor and create PO
ME57
Key in the PR number
Toggle the "Assigned Purchase Requisition"
Execute
Check the box next to the material
Assign Automatically button
Click on "Assignments" button
Click on "Process assignment"
The "Process Assignment Create PO" box , enter
Drag the PR and drop in the shopping basket
Save
SD - 3rd party sales order Receive Goods
MIGO_GR
PO Number
DN Number
Batch tab , click on classification
Serial Numbers tab
Date of Production
Flag Item OK
Check, just in case
Post
Save
SD - 3rd party sales order Create Invoice
MIRO
Invoice Date
Look for the PO , state the vendor and the Material
Check the box
Clilck on "Copy"
Purchase Order Number (bottom half of the screen)
Amount
State the baseline date
Simulate & Post
Invoice Number
*Invoice blocked due to date variance
SD - 3rd party sales order Create a delivery order
VL01N
In the order screen , go to the menu Sales Document , select "Deliver"
Go to "picking" tab
State the qty and save
SD - 3rd party sales order Create a billing document
VF01
Ensure that the delivery document is correct in the
Enter
Go to edit -> Log
Save
Regards,
Rajesh Banka
Reward suitable points.

Free of charge goods delivery

Dear All,
In case of FOC scenario, our process is running fine means end to end i.e. from SO till creation of excise invoice..but the problem is when i create the billing , following entries is passed :
Customer Dr.
to Cenvat suspense
& at the time of excise invoice creation:
Cenvat suspense Dr.
To Excise duty payable account
The problem is currently excise duty is getting charge under customer account which should not be happened but it should be charged to Company's account..as an expense..
Kindly help me in this regard.
Regards
Anuj

Hi,
Did you check the settings in VKOA. Check Sales Org/ Order Reason. Check whether GL Accounts assigned is correct or not. Also check the settings in Account key
Regards,
Jigar

Subsequent free of charge delivery issue

Hi freinds,
can any help me out, how we need to configure subsequent free of charge delvieries, and credit memos in what circumstnces.
thanks

dear
You can create a free-of-charge subsequent delivery if, for example, a customer receives too few goods, or if the goods have been damaged in the shipment. The system uses the free-of-charge subsequent delivery to create a delivery.
If a customer makes a complaint, you create free of charge subsequent deliveries to send products later to the customer free of charge.
here there is no need to create the memo as u ll be sending the Goods itself.
Prerequisites
The complaint must be based on an existing order.
Process Flow
You create a sales document with the document type for free of charge subsequent deliveries and refer it to an existing order. To do so, you have to enter which sales order the complaint is based on.
In Customizing, you can block the free of charge subsequent delivery from being delivered immediately. Go to Sales ®Sales Documents Sales document header ®Define sales document types, and select the Delivery block field in the Shipping section.
After you have checked the goods, you can implement one of the following activities for the complaint:
Approve it by deleting the delivery block.
reject it by entering a reason for rejection.
to create the free of charge delivery,,, follow the same steps used in order creation, use the document type FD ( standard )

REG- Subsequent free of charge delivery

Dear All,
What are the steps involved for creation of Subsequent free of charge delivery from a Returns order
The problem we are facing are when we created a SD (Subsequent delivery FOC) with reference to a RE (Return order) we found the Line items are blank. But it is accepting any item code entered manually.
Kindly guide me where it would have gone wrong
Rgds

Check your copying control (VTAA) for the RE to SD.
As per, Standard
Header RE to SD
Copying requirements 001 Header-same customer
DataT 051 General header data
DataT 101 Header business data
DataT 001 Partner header
Item - I Cat - REN to KLN
Copying requirements 304
Pricing type         B
DataT 151 General item data
DataT 102 Bus.data/item compl.
DataT 002 Partner item
X Update document flow
Thanks & Regards
JP

Subsequent free of charge delivery- Please guide

Flow control: Entry SAPMV45B, R1, RAUF is missing in T185V
Dear Gurus,
I'm configuring Subsequent free of charge Delivery but whn i go create cales order system throws a msg
Flow control: Entry SAPMV45B, R1, RAUF is missing in T185V
Kindly suggest the complete config. steps...for this
Thanks
Gaurav

Go to TCode VFBS, place your mouse on left box straight to table T185V and click on "Change". There maintain the following:-
Program::::::::::SAPMV45B
Group:::::::::::::R1
Panel::::::::::::::RAUF
and save the data.
Now retry the process.
thanks
G. Lakshmipathi

Subsequent delivery free of charge

Dear Friends,
I had processed subsequent delivery free of charge,with reference to a sale order.
in the sale order the material has the basic price.
when i processed the subsequent delivery free of charge document,both item and header condition is blank.
according to the scenerio the delivery is free of charge for the material.
but the material has pr00( basic price).
Kindly clarify on this.

Hi,
If it is the client requirement then you can give the Invoice type in VOV8 of the order and check whether he requires order related billing or delivery related billing and based on that give Billing relevance in the item category.
And check the copy controls for the same.
Thanks,
Sree.Manam

Reversa of subsequent delivery free of charge invoice

Dear All,
Normally when we create any subsequent delivery free of charge , as soon as we create it , the accounting document is cleared automatically.
Now when i want to reverese this invoice i am getting error message " The document is already cleared "
How can i reverse it.
Thanks in advance,
Jigensh

Hi
First reverse the document through T code FBRA and then cance l the document
Regards
Damu

Subsequent Delivery Free of Charge and Free of Charge

hi all,
What is Subsequent Delivery Free of Charge and Free of Charge?
and Can i get some material on this topics........
regards
Arun

Hi there,
Free of charge is when you send the free samples to customers. FD is the order type.
Some times customer may return goods coz of damge or of poor quality. In that case, he returns the goods & requests substitution. In that case we create subsequent free of charge order type SD.
Pls refer below for further information:
http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm
http://help.sap.com/erp2005_ehp_03/helpdata/EN/70/a7853478616434e10000009b38f83b/frameset.htm
Regards,
Sivanand

Sales Return - Subsequent delivery free of charge.

Dear Gurus,
Scenario:
We had sent some quantity of material say M1 to our cutomer.
Customer has paid for those quantity. Now, customer has returned the goods for some more modifications which needs to be done and send back to customer free of charge.
How can i receive the goods in my stock and despatch to customer again ?
Please advise.
Shailesh Panchal

Hi,
Make a sales order without reference and add all required details like material ,qty,customer code etc.
then select item category as TANN-free of charge item. but you need to maintain pricing procedure accordingly.
Make a return delivery and issue credit note accordingly through VF01.
This will help to accept free goods and issuing CN with ZERO value.
Regards,
Sandesh Sawant

Subsequent Free Of charge Delivery

Hi ,
In process of creating subseq free of charge delv , i did following :
1. Created a return order for the damaged goods ,order type RE .
2. Created a Subs free of charge delv order type , SD , wrf to above retrn order RE .
3. After the SD order , created a F C Delv , and did PGI . In this accounting docs , PGI COGS is increased and inventory decreased
( as per normal PGI process) .
4. Did a credit note billing wrf to retrn order type RE ( not wrt order type SD ) .
Problem :
In last step , system is showing the net value as zero in the credit note .
--This i assume is becasue we are not giving credit note as such to customer but "redelivering" damaged goods back to
customer. So net value is zero .
But , system is showing VPRS also zero . Is this correct ? Because , in step 3 , COGS is increased ,to offset this there is no accounting entry in credit note which got created .
So am i following coorect process ? If VPRS is zero in last step is that correct ?
Please suggest ...
Thanks !!

Hi,
I guess there was something missing, you had created the credit memo for the Free-of charge delivery - which was wrong.
(Instead you should create the credit memo for the return order- return delivery- credit memo.)
Normally this free - charge delivery /order which uses item category KLN - Is not relevant for pricing or billing, please check what was the item category used in your scenario.
It depends on the client business process - how they want to handle this kind of process.
You can refer the below process.
1, The customer returns the stock through return order- with reference to the original order(but here still the Original billing document is not cancelled) . with ref to this return order we can create the replacement order with free of charge delivery and send the stock back to the customer- for which not relevant for billing.- here ends the process.
rgds
Sunil

Subsequent delivery free of charge-SDF

Hi,
In SDF scenario,How to process excise invoice?
Example:-
Order(10 Qty)->Delivery(10 Qty)->Billing(10 Qty)->Excise invoice(10 Qty)->Return Order(2 Qty)->Return Delivery(2 Qty)->
SDF(2 Qty)->SDF Delivery(2 Qty)-> Excise invoice(?????)
Since Customer has already paid Excise for 10 Qty,Again for SDF do we need to create Excise invoice???
Pls guide Me.
Regards,
Mohd Azeez

If possible define one Discount condition type which will be manual. Make its calculation type as %. And in SDF maintain the same with 100 % dis. so that even if net value comes not equal to zero, because of this manual dis. cond. type net value will become as zero
where i have to maintain this cond type. i.e after price or after which cond type.
As u suggested it is manual process..
Can we do it automatically to make the net price zero
If you are creating Proforma Invoice, then create SDF wrt this Proforma Invoice instead of Original Sales order so that system will automatically copy zero value from Proforma Invoice to SDF.
this i didnt understood..
My scenario is like this.....
Order(10Qty)->Delivery(10 Qty)->Billing(10 Qty)->Excise Invoice->Returns Order(2 Qty)->Returns Delivery(2 Qty)->Excise Adjustments(J1IH)->Sub.Del Free of Charge(SDF) for 2 Qty -> Delivery(2 Qty) -> Proforma Invoice(2 Qty) -> Excise Invoice.
Please guide me whether i am correct...
I facing the problem in SDF...
with regards

Delivery free of charge Invoice should not Post to accounting

Hello,
As per Client's specific Business process , till now ZERO value Invoice(Delivery Free of charge) is created (This is not SAP Standard).
No accounting document is generated because of ZERO value of Invoice.
Only COPA Document is generated.
ZERO value invoice is generated because of all Pricing Conditions are Statistical in Pricing Procedure.
Now , Requirement is to create Invoice with Values & also Print values in Invoice, without posting it to accounting.
The simplest way to do it to remove Statistical check from all Pricing conditions , Values will start Printing.
But in this case ,Invoice getting started posted to accounting.
Q:- Please let me know the simplest way to create Invoice (Delivery Free of Charge) with values but on the same time , it should not post to accounting only COPA should be generated.
(AR Electronic Invoice)
Thanks in Advance.
Regards,
Vikas

Hi,
Free of charge Deliveries are basically of 2 types.
1. When you send Promotinal materials for display purpose, Physician samples in pharma industry etc.
Those materials do not have any commercial values, they are send free-of-charge.
We process those materials with Order Type FD (Free-of-charge Delivery).
2. Another case, when suppose you had sent 10 units of some material (commercially valued materials) for which customer has already paid the money to you.
After that suppose customer has found that 2 units are damaged or defective for which he has returned the 2 units to you.
Here, you have 2 options to compensate the customer, either you will issue a Credit Memo or you will replace with fresh units for those 2 returned units.
If, you will replace 2 fresh units to the customer, then it is called "Subsequent Delivery Free-of -chrge".
The Order Type used for the above is "SDF".
In this case, even though the material is a commercially valued material but we send it as free-of-charge as Customer has already has paid for it.
In both the above case, may it be "Free-of-charge Delivery (FD)" or "Subsequent Free-of-charge Delivery (SDF)", both the transactions are not relevant for Billing.
You can check the same in Sales document Item category KLN and KLX, both are not relevant for Billing. That means you can not create a commercial Invoice for those transactions.
In the above case, if required we create Proforma Invoice with reference to the Delivery document.
Proforma Invoice is a dummy Invoice and not posted to Accounting.
So, in your case you can create a Proforma Invoice.
Regards
Pradyumna

FREE OF CHARGE DELIVERY pricing error

Hi SAP SD Gurus
I am krishna new to this forum also new to SAP SD
I have dought about free of charge delivery subsequent process.
Can anybody please explain about the difference between those also what are the item category and scheduling cat for both.
i created free of charge delivery but it is showing pricing error .where I have done mistake please explain?
Regards,
KRISHNA
Edited by: kris_hna on Sep 19, 2010 2:14 PM

Hi Krishna,
When you wantto send some Promotional Materials or Sample materials ( which do not have any commercial value), we use Order Type FD (Free-of charge Delivery) in standard SAP.
Order Type FD does not require any reference document.
But, suppose we had already sent 10 pieces of material to the Customer out of which let say 2 pieces are damaged and customer has returned back it to you.
Now, you have two options, either to issue a credit memo for the 2 pieces or you need to send fresh 2 units to the customer again.
If you want to send fresh 2 units (which we call replacement) instead of giving him a Credit memo then we process with Order Type SDF (Subsequent Free-of-charge Delivery).
Order Type SDF always requires a reference document. It is created with ref to the Return order.
In both the above case (FD & SDF), Pricing is not applicable.
Ensure that Item category is KLN in the Sales order and in the Item category details, "Pricing" check box should be blank.
Regards
Pradyumna

Free-of-charge subsequent delivery

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