Related to "Free Goods"

Question

Dear SAP Experts,
How to configure a scenario where :
1 Scene: Sales without free goods:
Earlier company was selling a shaving cream 150gms for 100 INR (MRP) and was paying some 10% tax to government.
2 Scene: Sales with free goods:
Now company wants to give 20 ml shampoo sachet along with the shaving cream pack of 150 gms.
On both the products company has to pay 10% tax to government.
Product                   MRP        Tax
Shaving cream         100           10%                
150 gms.
Shampoo                 10             10%              
20 ml
Earlier company was managing the same in 100 INR.
Now they have to give free goods too, so how it can be managed in SAP.
what are the configurations required to do in free goods determination procedure including pricing procedure.
Please tell some options ?
Thanks in advance.

Answer 1

Hi Anubhav
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
IMG—SD—Basic functions—Free Goods
Condition technique for free goods
Select maintain Pricing procedure
Standard procedure is NA0001
Copy as ZA0001
Copy all
Save
The Pricing procedure NA0001 contains the Condition Type as NA00—free 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 menu—Logistics—SD—Master data—Conditions—Free Goods—VBN1 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 TAN—regular pricing
M1          3—Item 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