Free Of Cost Material Receipt & Issue

Dear Expert
We have received some materials free of cost from govt. , and also we have issued same material to our project/cost centre free of cost. Pl. guide us how to receipt & issue free of cost material to the cost centre/Project.
Thanks & Regards
Piyush Dave

If you receive a delivery free of charge from the vendor, you must first determine whether a purchase order was created for it or not.
A delivery free of charge increases both total valuated and unrestricted-use stock of the material.
Activities
Entering a Delivery Free of Charge with Reference to a Purchase Order
If the Purchasing component ordered a material with a price of zero and specified in the purchase order that no invoice is expected for the delivery, you post the goods receipt with reference to the purchase order.
Entering a Delivery Free of Charge Without Reference to a Purchase Order
If you receive a delivery from a vendor free of charge for which no purchase order was placed, you post the receipt of the goods as a miscellaneous (other) goods receipt.
Choose Goods movement ® Goods receipt ® Other. Enter the data as required and choose movement type 511. When you process the items, the system prompts you, for every item, to maintain a text for the delivery free of charge on the detail screen. This entry is mandatory, since without a purchase order there is no other way of entering information about the delivery

Similar Messages

Problem regarding Purchase Order with Free of Cost Material

Dear Xperts,
I am facing problems while doing Goods Receipt of a Purchase Order having all the materials we are going to receive Free of Cost from the Vendor.
This case is happening with Doemstic and as well as Importer Vendors also.
Problems to be solved:
1. If we are using Tax Code(with excise conditions) ,excise duty calculation does not take pace automatically at Goods Receipt as the Material Value is Zero on which the duties will be calculated for a Manufactuing Plant.
2. This case seems very problammatic if that Purchase Order is having almost thousand line items.The user has to enter all the Excise duties manually for each & every line item during Goods receipt in a manufacturing Plant.
3. In case of Importer Purchase Order also, the CVD portion & CESS on CVD portion user has to enter manually.
4. To solve this problem we are not using Free Goods Indicator in PO, we are entering 0.01 paisa , but during the MIRO of Planned Delivery Costs , the system is not showing or providing POP-ups of those relevant condition types to the user to enter the actual amount.
Please advice, how can we proceed in this case.
Regards,
Soumick

First you are putting 0.01 value . So the planned delivery cost is not showing coz if say tax is 8% then 0.01 x 0.08 will be 0.0008. It will take first two digit after decimal and hence its 0.00 and hence plannded delivery cost is not showing.
If you put 0.5 you will be able to put planned delivery cost in MIRO
Now regarding value is zero and how will the import duty be calculated. May be make a pricing routine where in the custom duty is not calculated on this base price 0.5 or 0.01 but on the actual value if it was not free of cost and that value you can maintain through MEK1 transaction code.
And while posting MIRO or MIGO you need to identify that these are free of cost material and use BADI fi_ac_document
and may be replace the actual GL with some other GL so that 0.5 or 0.01 does not add to your inventory cost and you could knock off later.
Regards
Sangeeta
Edited by: Sangeeta Khurana on Feb 6, 2012 1:37 PM

Free of cost Material

Hello,
We have a scenario in which their exists a material ( finished trading goods ) having moving average price as price control indicator is V.
Suppose stock of material is 1 now with moving average price as V, hence total stock value is 100.
Now we receive the same material from the group company as free of cost i.e without any value.
Is it possible in standard SAP that moving average price should remain at 100 with stock qty as 2 when GR for free of cost material is done ( I think this could be achieve by defining the new movement type and settings in customization with only qty update and no value update ).
Even if we achive the above thing stock value would be 200 as stock qty 2 and moving average price as 100.
Is it possible in standard SAP to keep the stock qty as 2, MAP as 100 and stock value as 100 after receipt of material as free of cost.

first of all free goods tick is available in PO line item.
second scenario
if you have 2 quantity with moving average price 100 so total value will be 200
if you did GR of 2 quantity free of cost then no value will be added. the total stock value will remain 200 for quantity 4. but MAP per piece will change to 50. so stock 4 total value 200 MAP will be 50.
regards,
qsm sap

Exicse for free of Cost Material

Hello,
I have a question regarding Excise on Free of cost Material. When we are sending material to Customer as a sample or free of cost then we do not pass any accounting entry for the same during VF01.
In the above scenario how do we capture the excise in our system..Please guide me.
Br,Vivek

Hi taurian,
This is very simple.
in the Pricing Procedure for FOC, shall I maintain the Excise Condition Type as Statistical?
for this no need to Specify statistical for condition types because after delivery subsequent billing is proforma.because this value should not post to accounts,that's why we create proforma invoice.So even without specifying statistical accounting document will not be generated.
but as per central department of excise we should pay the duty while goods leaving from factory.So that we should post this excise conditions amount to the accounts.
So create subsequent excise invoice then accounting document will be generated.system will calculate the excise condition amounts based on basic price you maintained in V/08,system does not bother whether basic price condition type is statistical or not.
For your understanding:
Configuration:
order type FD,Item category-KLN,Schedule line-CP
Delivery type LF
Billing type F8 (delivery related proforma)
Sales cycle:
Va01>vl01n>vf01>j1iin
Let me know for further clarifications.
Thank you,

Invoices for free of cost material

Hi All,
We are creating a delivery for free of cost material. while creating a billing document using T. Code VF01 with reference to delivery, i can create multiple invoices with reference to same delivery.
How cani block creating the multiple invoices wrt same delivery in this case.
Regards,
Prashant

Hi,
You have options to restrict to have only one invoice:
1. User exit
2. Develope a routine in copy control- Delivery to Billing.
Reward points if helpful
Vamsi P

Free of cost material but the planned delivery cost is to be invoiced

Hi,
We are having a scenario where in we receive material free of cost but have to pay for the delivery cost to the vendor.
We are creating Purchase order with the "free item" checked and we are maintaining the freight condition at the header level as at the item level as soon as you check the free item check box, the conditions tab disappears.
Secondly if we are maintaining planned delivery at the header level it requires the Invoice check box to be checked. Which is not possible to maintain with the free check box ticked.
Have maintained the vendor master without the GR based IV tick.
Request to kindly do let us know where have we missed out.
Regards,
mahesh.

one of the way out of this issue is
give a heavy discount on that material from vendor and put the price of material such as to do the frieght .but if u r having moving average price for that material thenit is not at all preffered

FREE OF COST - Purchase Accounting

Dear all,
I have one serious problem in my project. In purchase the Vendor is giving some schemes like FREE OF COST. ie If we buy 10 items supplier is giving 1 item as Free of Cost. The issue is our client wants the Accounting Entries for the 10 items is as per SAP B 1 Accounting method.
Where as for the Free of Cost item the Accounting Posting Entries as follows;
           1.   Free of Cost Purchase A/c               Dr. xxxxxxx
                 Discount Receipt A/c                      Cr.                   xxxxxxx
                 Closing Stock A/c                          Dr. xxxxxxx
                 Stock in Trade A/c                         Cr.                   xxxxxxx
Please help me out to overcome from this scenario.
thanks in advance.
Rajesh

Hi Rajesh,
This could be possible if you are using G/L determination on warehouse basis and store the FOC items in that warehouse or in Item Group basis G/L determination if its definite that these items will always be on free of cost but if its the same item i mean on buying 10 perfumes your client give one same perfume for free then you must use G/L determination on warehuse basis and prior to sale this item, you need to transfer it to that FOC warehouse and on sales documents you need to pick FOC item from FOC warehouse. ( Same process would be incase of purchasing)
Try it.
Regards,
/Siddiq

Returns of Promo material & Free of cost

Actually we are a pharmacuetical company and we have business scenarios that we give our marketing team promotional material which are free of cost and based on zero value means we maintain their stock in quantities only and also at the time of order processing we donot generate the invoices for such types of orders (due to zero value of order) because the items are already charged of to different departments .
some times it happens that we need to take back those items from our marketing team in the shape of return order, so my question is that what SAP best practices says about processing return order for such materials, how can i configure my system to process return cycle for those item.
kindly guruus help me out

Hi,
process the return sales order (RE) with reference to FD (your free sales order), becasue u didnt have billing document reference (this is actually sap standard, taking billing document is not sap standard). You definitely have perfect copy controls between OR to RE. then make sure item category determination settings like below;
REnormfree+nil=RENN
and then take PGR.
this is as per me is the best practice, which is purely SAP standard.
regards,
sk

Material receipt reversal issue

Here is the issue:
Several service entry sheets were entered twice into SAP and approved for Vendor . Upon approval, material receipt documents were created and because the vendor is ERS, invoices were created and paid. Manual credit memos have been processed in AP so the vendor has been charged back but the GR/IR GL account won't clear without the material receipt reversals. Anybody knows how to do the correction?
please advise.
thanks in advance!

Hi
please check this link
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMSRV/MMSRV.pdf
hope it helps to understand.
regards
Srinivas

Activate the FIELD Cost Center while issuing the Material to Order by 261

Dear All,
How to activate the FIELD Cost Center while issuing the material againest Order IN MB1A?
Thanks and regards,
Satyajit

Hi all,
I'm having problems with activating the cost center field too. I've already checked OMBW and OMJJ. For OMJJ, cost center field was required. For OMBW, Cost Center field was Supressed. However, when I checked the Change Logs, no changes were performed since last year. The user who raised this issue had the cost center field activated until December 1, 2008 but now it's deactiavted. So I don't think it's OMBW responsible for this since there was no change since last year.
Please share your knowledge on this.
Thanks!

What is the table name for getting Last Receipt & issue date of material?

Hi Friends,
What is the table name for getting Last Receipt & issue date of material?
*Case 1:*
Here, I am running report in May 2008. But, if there is no goods receipt for the respective material since last 13th March 2007.
Then in this case Last goods receipt date should be 13th March 2007.
Please guide me.
Regards
Siva

I checked MSEG table. But, I didn't find any field for date.
Can you tell me field name.
Regards
Siva

Free of Cost item with transportation charges

Hi
We have a new scenario in which we are importing some spare parts of the machine which have no value (free of cost). As we are importing the material some charges like custom duty and freight has to paid by us. Now the problem is when we are creating the purchase order and mark the line as free and enters the condition at the purchase order header, the system is not picking the charges at the time of invoicing.
Can anyone has any idea how I could handle this? Is there is any other procedure for handling the scenario?
Immediate response is helpful.

Hi,
While creating Po, check the check box for free goods...
While doing MIRO, enter your all costs in planned delivery costs.
Or
1. Create a PO for free goods with Free goods delivery indicator on.
2. Do goods receipt of free goods.
3. Create MIRO without PO and debit the account of material with delivery cost.
Note- Material tab is visiable in MIRO if you have activated direct posting to material account in SPRO.
SPRO - > Mat Mgmt - > LIV -> Incoming Invoice -> Activate Direct Posting to G/L Accounts and Material Accounts
Hope it helps.
Uts
Award if helpfull
Edited by: utsa agr on Feb 23, 2009 1:37 AM

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

Period Wise Inventory Opening balance,Receipts ,Issues and Closing Balance

Hi Guys I need Period Wise Details,but the above query is giving date wise can any one give me a solution plz.
the Below is the table structure and the select statement that i am working on.
CREATE TABLE INV_TRACK( TRANS_ID NUMBER,
ITEM_ID VARCHAR2(10), QTY NUMBER,
COST NUMBER, TRANS_TYPE VARCHAR2(2 ),
TRANS_DATE DATE )
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 1, 'a1', 100, 50, 'r', TO_DATE( '10/01/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 2, 'a1', 105, 50, 'r', TO_DATE( '10/01/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 3, 'a2', 100, 100, 'r', TO_DATE( '10/01/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 4, 'a1', 90, 50, 'i', TO_DATE( '10/02/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 5, 'a2', 90, 100, 'i', TO_DATE( '10/02/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 6, 'a2', 200, 100, 'r', TO_DATE( '10/02/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 7, 'a3', 2500, 10, 'r', TO_DATE( '10/03/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 8, 'a3', 100, 10, 'r', TO_DATE( '10/03/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
INSERT INTO INV_TRACK ( TRANS_ID, ITEM_ID, QTY, COST, TRANS_TYPE,
TRANS_DATE ) VALUES ( 9, 'a3', 1500, 10, 'i', TO_DATE( '10/03/2005 12:00:00 AM', 'MM/DD/YYYY HH:MI:SS AM'))
SELECT *
FROM(SELECT TRANS_ID,item_id,trans_type,trans_date,
lag(qty)
over(PARTITION BY item_id ORDER BY trans_id ASC) "Opening Balance",
     DECODE(SIGN(qty-lag(qty)over(PARTITION BY item_id ORDER BY trans_id ASC)),1,(qty-lag(qty)over(PARTITION BY item_id ORDER BY trans_id ASC))) "Receipts",
     ABS(DECODE(SIGN(qty-lag(qty)over(PARTITION BY item_id ORDER BY trans_id ASC)),-1,(qty-lag(qty)over(PARTITION BY item_id ORDER BY trans_id ASC)))) "issues",
     qty "Closing Balance"
FROM inv_track)
WHERE trans_date BETWEEN :date1 AND :date2

You have the right idea for the issues/receipts, but the KEEP function will get you your opening/closing quantities.
SQL> SELECT item_id,
2         period,
3         MIN(qty) KEEP (DENSE_RANK FIRST ORDER BY trans_id) AS opening_qty,
4         SUM(CASE WHEN qty_delta>0 THEN qty_delta END) AS receipts,
5         SUM(CASE WHEN qty_delta<0 THEN qty_delta END) AS issues,
6         MAX(qty) KEEP (DENSE_RANK LAST ORDER BY trans_id) AS closing_qty
7    FROM (
8 SELECT trans_id,
9         item_id,
10         trunc(trans_date,'mm') AS period,
11         qty,
12         qty-LAG(qty) OVER (PARTITION BY item_id ORDER BY trans_id) AS qty_delta
13    FROM inv_track
14         )
15   GROUP BY
16         item_id,
17         period
18 /
ITEM_ID    PERIOD    OPENING_QTY   RECEIPTS     ISSUES CLOSING_QTY
a1         01-OCT-05         100          5        -15          90
a2         01-OCT-05         100        110        -10         200
a3         01-OCT-05        2500       1400      -2400        1500
SQL>

Free of cost supply for Rejected item

Dear All,
Please help me in the following scenario :
a. A line item ( Imported item )rejected by quality .
b. For that rejected item foreign supplier send us the same material in free of cost . No need to pay for that item.
c. I paid the freight and customs duty for both rejected item as well as for free of cost item .
My questions :
1. How to make GR for free of cost in the same P.O ???
2. How to account the customs duty and freight that has been paid twice for the same item ???
3. Can i avail cenvat facility for both item .???
Please clear ....
Cheers,
Somu

Hi
If the PO is not taken into GR then add the item once again in the PO and chec the FREE GOODS checkbox. By this check the GR taken will not affect the cost of this item.\
For the double payment made already , you can create a credit note for the vendor in MIRO [Subsequent credit], by choosing the amount and entering the articles.
On confirmation of MIRO the value will be reduced from these articles in proportion which was actually increased due to double payment.
Hope this helps.
Regards
Govind.

Free Of Cost Material Receipt & Issue

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