Posting in Free Goods

Hi all
Could you please tell me what and how to Account Posting Standard for Free Goods.
I want to Post Account for Billing Free goods to Cost of Sales. Please tell me how to configure.
Thank and Best regards,

Hi,
Have you configured the Cost of Sales Accounting by defining functional areas etc? If yes you must have defined cost center categories for functional area. Based on the cost center category or cost center you can create a substitution rule.
Thanks
Krish.

Similar Messages

Only RG23 A/C Part-2 Posting for free goods

Hi Gurus,
Hi Every one, how are you, i have one requirement from client.
1. this case is for free goods, where client wanted to take credit for material purchase ie only part-2 entry should get posted,
2. Liabilities should not get posted.
As per my understanding or solution given to client.
Both Part-2 & liabilities for vendor is getting posted,
can you please help me to resolve the issue.
full points will be awarded if found usefull.
Thanks & Regards
Manoj K Singh

Hi,
During Part II posting of Excise Duties for Capital Goods, Debit GL Accounts are determined via ETT CAPE and Credit GL Accounts are getting determined via ETT GRPO.
So check A/c determination for ETT CAPE and GRPO both in path SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify Excise Accounts per Excise Transaction & SPRO > Logistics - General > Tax on Goods Movements > India > Account Determination > Specify G/L Accounts per Excise Transaction

Free goods-more than one material as a free item in sales order

Hi,
We have a requirement for our client in free goods scenario in which the client wants to give more than one material(2or3 etc) as a free item in the sales order.I have already explored the slaes BOM functionality,anyother suggestions other than Sales BOM will be of great help to me.
Thanks

Hi Sam,
Check out my [post|Re: Free goods process requirement] wherein I had the same problem once upon a time.
We tried all possible things, however concluded that through std SAP functionality the same is not possible.
FYI: Free Goods doesnt support BOM, Sub items, Product selection. etc.
Regards,
Amit
Edited by: Amit Iyer on May 12, 2011 3:01 PM

Free Goods and Excise

Hi Friends,
I have a scenario as
My client gives some free goods as free items in order. But these free items are excisable....so how do configure this scenario.
Where for customer it is free goods, but for company point of view, company has to pay the excise duty to authorities.
Kindly guide on the same.
Thanks in advance
Shailesh

Dear Shailesh,
You can do like this,
1.You can define different pricing procedure for the FREE goods.(T.code V/08)
->In the Free goods pricing procedure you maintain Excise related condition types(T.code V/06)
-->You maintain R100 condition type for 100% discount after the total value.(T.code V/08).
-->Maintain seperate Account key for R100-Condition type, also assign same account key to the Price condition type (in Free goods pricing procedure only)
Maintain same account key for the Price condition type and R100 - condition type.(T.code V/08)
2.You define Different sales document type for FREE goods processing. (T.code VOV8)
-->You assign document pricing procedure C-Free of charge to this sales document.(T.code VOV8)
3.You determine the Free goods pricing procedure in OVKK transaction for this combination.
Sales areaFree goods Document pricing procedure(i.e C)Customer pricing procedure--->free goods pricing procedure.
4.When you do the Free goods process customer account should not get effet to avoid this ,you ask FI people to create seperate G/L account to post the Free Goods process values.
In VKOA transaction you assign free goods G/L account for R100 -->Condition type account key with other key fields(same G/L account For sales revenue and 100% discount).
Maintain the Condition record for R100 condition type with 100% in VK11 transaction
Now when you create Free goods sales order system will pick the Free Goods pricing procedure in that pricing Excise values and Price will come but Total value will zero due to 100% discount.
When you release to accounting
Excise values will posted to the respective G/L accounts.
Price and 100% discount will posted to the respective Free goods G/L account.
Note:- Make sure that you have done the CIN configuration settings regarding Excise duty.
I hope this will help you,
Regards,
Murali.

Posting the Expenses of Free Goods

All SD Gurus
I have some doubt in SD-Module.
We have Trading Business, in that the Trade offers ie 100+10 Like that.... is presently posting in VPRS - Cogs (During PGI) only. But finance wants to post the values of trade offers (10 pcs) to Marketting expenses (During Bill Release to Finance), Presently during Bill release these trade offers are not considered for pricing.
According to my Current setting Free Goods Item Category is marked as Statistically. So it not posting my PR00 Conditions in Accounts.
Any help on this subject will be highly appriciated.
Thanks in Advance
Regards
Vishal

Thanks, I have maintained all setting for Free goods. System is not posting any values @ time of Invoice in accounts as my free goods Item category is statistical. If I remove this setting then I have to maintain the PR00 - Base Condition (Mandaotry) which will post amount in Sales Domestic G/L Account.
Any alternative solution?
Regards
Vishal

Problem with posting free goods delivery

I need some help,
when I'm posting the goods issue in VL02N I'm receiving following error:
<i>Item   Material           Description                                   Delivery qty UoM Batch
000001 XAK 256 N50 CB P35 CN UR V35/ AUTOALARM DOG 50                             1 ST
       E KO 014
Order 2000574 cannot carry revenues</i>
First I don't know why the order no is 2000574 when the delivery was done to order 2065030645, but it's not a problem to me, the problem is why I'm getting the error 'the order cannot carry revenues' because the delivery is made to an free goods order and the order has values of 0 in pricing conditions.
Looking forward to reciving some help
regards,
Martin

Hi Marcin
Check the following:
Free Goods
Also referred as discount in kind. Business can consider to offer discount not in monetary terms but in the form of free goods, ie goods provided without any charge when a particular quantity of material is purchased by the Customer. SAP provides two methods:
a)     Inclusive
b)     Exclusive
IMGSDBasic functionsFree Goods
Condition technique for free goods
Select maintain Pricing procedure
Standard procedure
Copy as ur Pricing procedure
Copy all
Save
The Pricing procedure contains the Condition Type as NA00free goods
NA00 has the Access sequence as NA00
Select activate free goods determination
Assign the procedure to sales areas using document procedure and customer procedure
Select your sales area and assign
S002      SB     SX          A     1     ZA0001
Save
A= Document Procedure (determined based on doc)
1= Customer procedure (Determined from customer master)
We have to maintain free goods condition records
SAP menuLogisticsSDMaster dataConditionsFree GoodsVBN1 Create
Discount type: NA00
Continue
Enter sales org, distribution channel and Customer
By default the entry screen is for Inclusive, Select Exclusive button to maintain Condition Record for Exclusive
Inclusive: Continue, as it is to maintain the record
Material: Product ID
Min Qty: Minimum qty required to be ordered (10)
From: From how many units free goods are considered ie 10
Unit=Unit of measurement of ordered product
Are free Goods: quantity free
Add= The unit of measurement of free goods item
Calculation: 1 Prorata
save
What is the other requirement?
The pricing procedure should contain the Condition type R100 that is free goods condition type. This condition type in the Procedure has requirement as 55
(55 means only if the item is free goods then only value of R100 to be used in the calculation. Value= controlled by Alt condition base value 28 which states that discount should be 100%)
Check whether your pricing procedure is created from scratch then you have to maintain the Condition type R100, requirement as 55 and altcbv= 28
If you have copied from RVAA01 there is no need to maintain R100, as it is already available
Create the order
Ordered qty is split into two items
M1               30 Pcs
This will be split as
M1          27---Item cat TANregular pricing
M1          3Item cat as TANN eligible for 100% disc
How the item category is determined
Main item:
Z1OR + NORM+TAN
Sub item
Z1ORNORM Usage= Free + Higher level item cat as TAN= TANN as sub item Item category
Exclusive
VBN1
Select Exclusive
The screen fields are same as inclusive except here there is a provision to add the material number of free good material, which is different from the material ordered. If left blank system takes both as same material
Reward if useful to u

Free Goods Billing & Posting

Hi
Anybody can help me to configure the Free Goods Sales Order, Delivery and Billing. For Indian operations due to VAT the free goods value should be displayed in the invoice. But it shouldn't post to accounts.
How can I do that ?
Thanks
Christine

hi
1.Run trans. VBN2 to first create master record for free goods as follows:
Enter following information in selection screen:
- Free goods type: NA00
- Sales org, distribution channel, customer # and execute.
Now in next screen create the record as follows:
- First select the exclusive button and verify that you are in exclusive view.
(that is if you want exclusive)
- Material#, Min qty - Say 34 cartons. (check in what units you want to manage)
From: 34 cartons
unit of measure:
Free goods: 12 Pcs
Unit of measure: Pcs
Calcualtion type: 1 or try the other options
Deliver control: Blank or any of the other options suitable to you.
Now save and exit.
Now run VA01 for 34 cartons and press enter. The system will automatically propose the free goods
item at no additional charge. Try higher order qtys and see if the free goods qty are scaling up.
If not adjust the calculation parameters in the master record screen
It should be transaction VBN1. Sorry for the error.
VBN2 is to change the record. VBN1 creates it.
Rewards point it helps

During MIGO for Free goods documents posted in SPL in ECC6

Hi Friends,
In ECC6, when posting MIGO for free goods, document is being generated and posted in Special Purpose Ledger, but No Document is being generated for the same process in 4.6.
Can any one suggest the reason for the same.
Thanks

Dear Peeyoosh Jain
For inventory accounting, go to OBYC, click on Transaction BSX, give Chart of Accounts and execute so that you will see the respective G/L account would have been assigned there.
thanks
G. Lakshmipathi

PO Print of Free Goods

Vendor has send free goods but excise duty and freight, etc we have to pay.
If I put free item tick in the PO, the condition tab disappears. I cannot enter the basic price and any other condition in the PO. therefore tax and other conditions cannot be calculated.
In the PO Print we have to print the excise duties and other conditions. Currently it is not coming in PO print.
How we can print the excise duties and other conditions in PO for the free goods.?
What I have to tell to ABAPER.

Hi,
In case of free goods provided by vendor, create a free PO but need not to take the printout of same and sending it to vendor because in case of free supply of materials (for e.g. samples), vendor doesn't seek any PO document. We create free PO, its for system adjustment.
Just check this with your client, if its really needed then ask your client to maintain Pricing details in Item Text and try to print the same as Remarks in PO Printout, this requires ABAP effort.
And during GR against PO, enter Excise Base Amount, Excise Duty, Ed Cess and SECess manually and post it.

Tax Calculation of free goods

Hi
We have a requirement where the client wants only VAT to be posted in GL accounts and not the price.For this I tried free goods condition type R100 with AltCBV 28.But the VAT value is also coming zero. I want the VAT to be calculated on Pricing condition and then give 100% discount.
Apart from this I also tried to make pricing condition statistical and calculate VAT on it but then also system gives zero value for VAT.
Also wondering if the scenario can be addressed with Free of Change Dellivery.

Hi
Normally in scenario where you are dealing with samples , there are cases you have to charge only TAXES / EXCISE part.
Here my SUGGESTION is you can handle this through a simple sales order process, where you have to configure a new pricing procedure.
1. Create a new document type to handle samples.
2. Create a New pricing procedure where you can keep the basic price condtion as Statistical and rest all same as wht is is there your main pricing procedure. Just juggle with the TO-FROM to capture the TAX part in the total.
3. Doc pricing procedure will help you to pick the new Pricing procedure
4. Now Process this as a normal sales order
5. This new document type will help you to have a proper reporting.
The only constraint here is USER has to punch a fresh order seperately for such scenario. He cannot give a free good in the same sales order which is used as standard.
The other way is you can configure a FREE GOOD Determination procedure as suggested where you need to then have your Single pricing procedure accomodating the same scenario.
Thanks
RB

Cost of free goods in header

dear all
i have configured free goods,in the order the cost is coming for free goods at item level and it is not adding to the header cost total.
for eg:i have 2 items and 1 free item.costs r 300,400,500 respectively.
in the header it is showing only 700 as cost.
i observed the inventory doc is posting correctly with 1200(which includes free goods cost).
can anybody tell weather it should add up or not and how it can be done??
thanks
reddy

Dear Yugandhar
Check
SPRO->Sales and Distribution->Basic Functions->Free Goods->Control Free Goods Pricing->
Control Pricing For Free Goods Item Category you will find statistical value
or in VOV7 below pricing you find statistical value
Statistical values
Indicates whether the system takes the value of an item into account
    when it determines the total value of a document.
There are three options
      System will copy item to header totals
X     No cumulation - Values cannot be used statistically
Y     No cumulation - Values can be used statistically
Check if it is initial for your item category
Standard for TANN is initial and pricing is B     Pricing for free goods (100% discount)
Do give your feedback
Regards
Jitesh

Free goods but want to freight cost updation upon GR

Hi,
Scenario:
I have a PO with 20 line items and header freight cost.
There are few more items in PO which are ticked as free goods.
There is a stock of those materials with certain MAP.
Freight condition has been configured as vendor GR so that it gets loaded on materials upon GR.
Requirement is that
Upon GR of this PO,MAPshould get updated with the freight cost for those materials also which have been marked as free goods.
How this can be achieved ?
Regards,
manOO

Hi Rang,
Thanks for the feedback.However service PO is out of scope as client do not want to go for servicees.
I could not understand your suggestion
<u>you give PO to frieght vendor for freight value & in remarks you mention reciving as FREE GOODS from vendor xxxxx & do GR load cost to material & pay to freight vendor. (this is not advisible, but one solution for your problem).</u>
I have to receive one material via purchase order as a free item but I need to pay vendor for the freight charges that will be incurred to ship this item along with all the other items in the same PO.
Can you please explain me further as what you mean to say in your post.
I should be able to load these freight cost on all the materials in PO including the material with 'free' indiactor.
In short upon GR MAP should affect with freight cost as there will not be value addition of the material since received as free.
Please suggest.
Thanks in advance
Regards,
manOO

Free Goods Should not down MAP -

Hi, MM / FI Gurus!
We have a scenario where Vendor offers a Discount in Kind. For e.g. For Order Qty over 1000 Pcs vendor offers 10 Pcs free over each 100 Pcs. Assuming PO price as 10 units then for 1200 Ordered Qty vendor delivers 1200 + 120 = 1320
In PO the Free Goods are determined correctly (in either cases whether Inclusive / Exclusive). Order quantity in first line has a gross price determined. The second line tiem in PO has Free Goods Quantity determined as per procedure for Discount in Kind, with zero price.
When we do GR the Inventory is up by Order Quantity + Free Goods Quantity.
Automatic posting in MM determines the GL correctly.
Dr Inventory - Drugs and Meds: 128010 Amt 12000 Curr
Cr GR/IR Clearing:                               200060 Amt 12000- Curr
As expected MAP goes down due to Free Goods (Zero Price)
Client wants to up the inventory for by Order Qty + Free-Goods Qty but this should not down the MAP as well.
I have activated Direct Posting to G/L Accounts and Material Accounts for Incoming Invoice
Idea was to Credit Gross Price on the Free goods Quantity to Inventory - Drugs and Meds: 128010 to make up the MAP in material master and Debit the same amount to Other Income as follow:
Dr GR/IR Clearing: 200060 Amt 12000 Curr
Cr Vendor Account:                          200001 Amt 12000- Curr
Dr Inventory - Drugs and Meds: 128010 Amt 1200 Curr (Free Goods)
Cr COS-Drugs & Med:                         500100 Amt 1200- Curr (Free Goods)
However we cannot post Gross-price for Free goods Directly on the same GL(which has Automatic posting Checked) to Up the MAP (which falls down because of free goods having zero price).
Is there any way in FI to have both Automatic and Manual posting for the same GL?
Also I am not sure that after we do this if MAP will be Up.
Is there any other way may be by using Movement Type for such Movements?
Thanks
Atul Sonalkar

Hi Atul
Create PO only for the material for which you are going to pay your vendor.
ie., for 1000 units @ Rs. 12 = 12000. Post GR.
Now you are getting 100 units free. Don't enter this in your existing PO. Create a new PO for the free goods and post GR.
Your MAP related problem will be solved.
Regards
Rajesh
Do reward if this is useful.

MIGO of free goods,

Dear Freinds,
When i do MIGO for gree goods using Mv type 511,
sytem is giving warning message enter text,
can any body tell me what text i have to enter,
If i enter some text, system giving error message" can not change movement type without reference to PO"
please tell me what setting i have to do

Hi,
Delivery Free of Charge
If you receive a free-of-charge delivery from a vendor without a PO having been issued beforehand, you post the free delivery as an other goods receipt.
In the standard system, you specify a text and a vendor for each item. This control for the Text and Vendor fields can be changed depending on the movement type 511 in Customizing for Inventory Management and Physical
Inventory under Settings for Enjoy Transactions→ Settings for Goods Movements
(MIGO)→ Field Selection Per Movement Type.
for mvt 511, vendor number and text are required fields.
in migo select;
GOODS RECEIPT and OTHER and mvt 511
give the material number, vendor number, plant, SLOC, qty,
in text field you can write any text you feel like, type say free goods
select item ok tick
post.
there should not be any issue.
regards
Rajesh

GR of Free goods/Donated goods

Hi Experts ,
Please advise me what is the right way to perform GR for donated materials/Free products .To my knowledge we can receive free products or donated products by MB1C or MIGO using movt. 511 (Please correct me if i am wrong) .
I would like to know how should the PO be created (should it be created for zero value)..if PO is created for zero value how will the value of the material be posted to general ledger when GR is done.Your comments will be appreciated.
Regards
Albert

There is no one correct answer for your question. I had faced a similar requirement in an implementation.
There are multiple ways of doing GR - GR against PO (as free good) but this requires that the donor be created as vendor or GR using 501 or 561 or a special movement type (copy of 561).
Couple of other questions:
1) What is the material number to be used? Since these goods are free / donated, finance would like that they be held at zero value. So if you use an existing material, it cannot be done without split valuation. Also, if the material is valuated at moving average price, the free good is going to bring the value down. Ultimately, this decision has to be taken in conjunction with Finance.
2) If you choose to use 561 or a copy of 561 - who can do it? Obviously not everyone, since this kind of movement is prone to misuse. This is another point to consider.
In my case, we used 961 with authorization only for chief of stores. And a separate material code (this decision entirely driven by financial and legal requirement)
Hope this is helpful.
Regards,
Lakshman

Posting in Free Goods

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