Settling Rebate through free goods in R/3

Client is producing halogen and CFL lights for home and office use. Client is making sales through dealers and distributors in market.
Sales regions are: North, South, East, and West.
Sales Sub regions: Delhi, UP, Maharashtra, Karnataka, West Bengal and so on.
Promotional Schemes:
1)     Monthly:
a.      Quantity targets are given for month on achieving free goods are given
b.     No Credit Memo
c.     For example, on sale of 1000 pcs of 20W CFL in one month, 50 pcs of 15W CFL free.
d.     Mostly product based schemes as to promote particular line item
e.     Different schemes for distributor and dealers (divided on basis of customer group)
2)     Quarterly:
a.     Similar to Monthly with difference in time frame which is of quarter
3)     Secondary (On basis of points)
a.     For each qualifying product, points are awarded. On accumulation of points free gifts or goods are provided for different level of points
4)     Annual:
a.     Annual discount on basis sales amount irrespective of which products sold.
Key Points:
1)     All calculations are done on excel sheet using sales report from SAP i.e. to find the qualifying customer.
2)     Later scheme is settled by creating free of charge sales order in SAP of zero prices.
3)     Same product can be part of two schemes one on distributor level and other on regional or national level.
4)     No credit memo is issued to settle schemes.
Question: Can we map this process through rebates or any way sales such that the schemes can be created and list of qualifying customer is calculated in system itself? Later, it can be settled through free goods rather then credit memo?

Already solved. Item Catgory settings and Downloading R/3 customizing to CRM

Similar Messages

Rebate Agreements - Free Goods payment

Hello,
We're currently using SAP Standard Rebate Agreement process.
Final Settellment is generating a credit memo request, then converted into a credit memo.
We hava a user request to stop using credit memo and to deliver free goods instead.
The only solution we have today is to follow accruals using the rebate agreement, then to reverse the accrual manually and to create a free good order seperately.
Is there any way to manage payment of rebate agreement with free good delivery.
Target is to keep an integrated process.
If someone already solved this type of request, we would be interested.
thanks for your help
best regards,

Hi,
By raising credit memo, we are just creating a liability that we have to pay / adjust to client for the rebate discount due. Payment method can be set in agreement master and while posting credit memo to accounting, will be passed to accounting. This data can then be used by FI - AR team to make the payment.
Regards,
Naveen

Different routes in free goods

Dear Experts,
Is it possble to have different routes in the items with free goods..?
Material B is given as free goods with material A. Both are from same plant and shipping point is also same. Both materials have different transportaion groups. In the sales order if I enter parent material (A) then it's free goods material (B) also get the same route. moreover this field for the B material is grayed out and i can not change it.
If i enter B material then it takes the route as per the customization done i.e. as per the transportaion group maintianed in the material master.
Is there any way to solve this..? or is there any enhancement point i can look out for..??
thanks in advance for your valuable inputs..
Regards,
Vaishali...

HI,
As my per assumption through Free goods, it is not possible either to determine or customize diffrent routes.
If It is essential business scenario try the following option, it will definitly work.
1. Instead of Free Goods please incoropoarte SD BOM in CS01 transaction.
2. Do the Item category determination accordingly and propose TANN for the second item i.e free goods. So that the price will not be charged and cost can accumulated at header BOM level.
3. During BOM explosion in the sales order system will determine the header route to line item routes. But the route proposed at BOM item level is in editiable mode.
4. You can incorporate the check in user exit MV45AFZZ at line item and propose the new route for the BOM line items.
Thanks & regards

Discount Free goods

Hi Gurus,
Can we put a condition in the system that allows particulary for that customer we need to give a reduction or we need to give a qty for free to the customer when they order a qty respected.For example.
Customer order 10 units of specific material for ex. X, than they receive 1 unit of Y as free Goods.
Can you please suggest a solution.
Thanks in advance!
Regards
Bawa

Hi
Yes , this can be done through free goods excusive funcionality.
in VBN1 Click Exculsive and maintain the condition records
Check this link for Free goods
http://help.sap.com/saphelp_erp60_sp/helpdata/en/dd/55fa34545a11d1a7020000e829fd11/content.htm
Regards,
Ramesh
Edited by: Ramesh on Apr 6, 2009 3:17 PM

Rebate with also free goods and depending on a volume

Hi my company wants to use the rebates but some customers prefer goods instead of cash and my company wants to decide at the begining of the year the limit from which the customers are subject to rappel
1) What happens if some of my customers instead of money prefer goods?
May I modify the item category and introducing a new item relevant for delivery?
What about a free delivery but with a follow on document of invoice. I think that I would need the invoice to clear the account.
2) We want that the customer enjoys of the rebate if the bought quantity (volume of purchases) surpasses a limit-value. But in any other case we have to clear the account. Is it possible to fix a limit in the rebate arrangement.

Hi,
I am by no means an expert on rebates, but to me it sounds like you really need to create your own custom process....
(1) The standard rebate agreements in SAP settle the rebates through credit memos. This assignment is made in VOFA. Honestly I don't know that even a custom rebate agreement type would allow you to create a sales order or delivery with reference to the rebate agreement... You can try creating a custom rebate type in VOFA and linking it to a sales order instead of a billing doc... I doubt it will work though.
(2) See if you can hijack the 'condition update' functionality (statistics table S071) to track the cumulative values for certain materials. Then you can try writing a pricing requirement for the condition type, marking the condition as inactive is a certain value has not been passed.
Please let us know if you can get any of this to work.
Thanks,
Ben

Free goods in lieu of Rebate Credit Note

Hi Gurus,
Can we have the option of Free Goods Settlement instead of Rebate Credit Note at the time of Rebate Settlement.
Your reply is highly appreciated.
Sadanandam Kasarla

Hi Sadanandam kasarla
Generally if you want to issue free goods then you need to create a sales order and you have to deliver the stock from the storage location also. The inventory level will come down
But if you are doing the rebate settlement. then you will be using a Dummy material to create the sales order and then you will be doing billing . Finally only the rebate value will be settled to the customer .
Regards
Srinath

Rebates Payout as Free Goods

Hi All,
I have searched for this topic in the forum but i couldn't get any concrete answers.
I have a scenario where we need to payout rebates to Customers in the form of free goods.
So if customer purchases qty of 100 units in multiple orders in a given time frame he is eligible to receive 10 EA free.
How can we generate a free good order instead of Credit memo while settling rebates?

Hi Ankit
There is no such utility in SAP standard. We also had same requirement in my previous company and for meeting this requirement we developed an ABAP application. We maintained main item and free item material in a condition type and at end of the month that program checked the selling quantity of main item and created FOC order for free good material. This is the way we did and many other clients are following this approach.
Thank$

How to config Free goods process like rebate

Dear Masters,
I have a problem like this:
Our customer want using free goods by accrual sales volume. If in a period, sales volume can have exp 1000 m3, buyer will get a free goods. But as I know SAP std does not support like this! Is there anyway to solve problem?
Thks a lot for your support!
Regards,
Nguyen Pham,

Hi,
The process is not directly supported in SAP, however there is a suggestion not sure how far it solves your problem.
1. Seperate order type (if the volume of such schemes is high).
2. Using VA05 find the volume of sales for such scheme product.
3. Mainatian free goods procedure for scheme product.
4. In the new order type put in the quantity referenced from VA05, have the free goods determined with TANN for the free goods & for the higher level item make it non deliverable.
By this way you would be capture the quantity for which the free goods have been given away as well as useful for reporting purpose.
There is no direct rebate like set-up possible for free goods without any custom development to my knowledge.
Regards
Subhadeep

Free Goods not flowing when creating return order through invocie reference

Hi ,
we have configured free goods scenario for our client.
Free goods are determined in sales order based on condition maintained
In sales order Tan ,and Tann item category are determined and based on SO , delivery and billing type (F2 ) happens.
Now we are creating the RE return order , with reference to Billing document F2 , on copying the items , system is only copying the main goods article and free goods item cannot be determined .
we have done the following configutration ,
Item category assignment as RE NORM REN RENN (free goods )
Below detail of Copy controls
1) F2 to ZRET
Header level
data type 051 copy requiremetn 001
data type 301
data type 003
Item level
TANN to RENN
Data type151 copy reui 303
data type 102
data type 002
condition 251
can you please check and confirm , how this can be handled or pls give me the config steps
Thanks

Hi
If you want to happen this, you should assign the free goods procedure to the combination of Sales orgDistChDivDoc Pr ProcCust Pri Proc
Thanks,
Ravi

Scale in pricing and free goods.

Hi All,
Can anyone plz tell me ,What is the role and how to use the scale in pricing and free goods determination.
Regards,
Ashima

hi,
. Create a condition by copying a a standard condition like BO03 in V/06
2. Assign this condition in the std pricing procedure with acct key as ERB and accural key as ERU - V/08
3.Create a Rebate Agreement in VBO1 (It is O = Owl and not zero). No will be generated
choose 003 - Customer rebates, enter the customer code, the validity and check for the status shld be in Open, click on the conditions enter the percentage and accrual amount. You also can have scales in this. Also you need to maintain the material for the settlement
4. Create a sales order for that customer and check the rebate agreement.
5. You can see the rebate condition in the invoice only.
6. Once you have posted the invoices, then go to rebate agrrement no. clicl on verfication and it will show the order details.
7. For settlement change the status of the rebate to B - release for the settlement.
8. Credit memo request will b generated copy the no. and go to VA02, remove the blocks if any and create an invoice (credit memo).this will show u the accrual amount.
9. In both the invoice and the credit memo check the posting - accounting document it will show u the accrual as negative.
10. Again go to rebate aggreement and check the status it will show you D - Final settlement of agreement already carried out
Regards,,
JP

COGS update on other GL Account at the time of Free goods or Sample goods

Hello,
In sales process, Usually the at the time of Delivery, material document is created as
DR COGS
CR INVENTORY
But in the case of free goods or bonus goods or samples: the account should not determines COGS instead it should determine another GL Account called as Free good -COGS expense A/c.
How can we solve the issue.
Regards,
SK

Hi Yasar,
You need to create a new routine for calculate type.
Do as below:
1. Go to VOFM>Formulas>calc.rule Rebate InKd to create a new routine for calculate type. for example 601.
2. add the following code in this routine 601 and then save.
USING L_FRM STRUCTURE KONDN_FRM.
DATA: VORKOMMA LIKE KONDN-KNRMM,
NACHKOMMA LIKE KONDN-KNRMM.
L_FRM-NRMENGE = 0.
L_FRM-NRRUND = 0.
L_FRM-NRMENGE = ( L_FRM-MGLME / L_FRM-KNRNM * L_FRM-KNRZM ).
business rounding
VORKOMMA = FLOOR( L_FRM-NRMENGE ).
L_FRM-NRRUND = L_FRM-NRMENGE - VORKOMMA.
L_FRM-NRMENGE = VORKOMMA.
3. Select routine 601 in field "Calc.Rule" when you create free goods condition record.
Hope it helps.

Configuring requirement : ordered item to absorb cost of free goods

Hello Friends,
I need to configure this in SAP SD.
The main item should accumulate the cost of the free goods.
I have set the cumulative indicator and deactivated pring for this item.
Do i still need to configure the stock value for the free goods as cost free item? Or is this step only applicable for
another scenario, like,
If I were to activate Pricing such that free goods is displayed as subitem and VPRS configured as cost and discount set to 100%
1. Set Item category to TANN using FREE usage AND
2. use condition type RL00 with requirement 55.
3. use pricing type B.
regards
Ravi

Read this SAP help at http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fa4e545a11d1a7020000e829fd11/frameset.htm and the topic Free Goods in Sales and Distribution Processing for details.
Also go through each step of the configuration of the path at SPRO->Sales and distribution->basic functions->free goods.
Regards,

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

Free goods - Exclusive - Quantity of free goods

I want to give free goods by the condition record I have made at the tcode VBN1. Free godds will be given by the exclusive technique. The material code of the main material with active prcing is 100005 and the material that I will give as free good is 700001. For every 4 pieces of 100005 I will give 1 piece of 700001. I have entered 100005 at the "Material" column, 4 at the "Min. qty" column, 4 at the "For" column st at the "Unit" column, 1 at the "add. FG" column, ST at the "AddQTYUnit" column, 1 at the "Calc.Rule" column, 2 at the "FreeGoods" column, 700001 at the AddMatFrGd" column. The system gives 2 free goods (700001) for 6 priced material (100005) or 4 pieces of 700001 for 14 pieces of 100005. On the other hand I want the system to give free goods for the exactly enough piece of price material. I mean: 2 pieces of 700001 for 8 or 9 or 10 or 11 pieces of 100005; not 2 pieces of 700001 for 6 or 7 pieces of 100005 but the system behaves this way. can anybody help me abput this subject?
Thanks in advance for the answers....

Hi Yasar,
You need to create a new routine for calculate type.
Do as below:
1. Go to VOFM>Formulas>calc.rule Rebate InKd to create a new routine for calculate type. for example 601.
2. add the following code in this routine 601 and then save.
USING L_FRM STRUCTURE KONDN_FRM.
DATA: VORKOMMA LIKE KONDN-KNRMM,
NACHKOMMA LIKE KONDN-KNRMM.
L_FRM-NRMENGE = 0.
L_FRM-NRRUND = 0.
L_FRM-NRMENGE = ( L_FRM-MGLME / L_FRM-KNRNM * L_FRM-KNRZM ).
business rounding
VORKOMMA = FLOOR( L_FRM-NRMENGE ).
L_FRM-NRRUND = L_FRM-NRMENGE - VORKOMMA.
L_FRM-NRMENGE = VORKOMMA.
3. Select routine 601 in field "Calc.Rule" when you create free goods condition record.
Hope it helps.

PO Creation of free goods for intrastat reporting

All,
Due to intrastat reporting restrictions, when we are creating a PO with a free good we need to mark the item as "Free Good" on the item overview, and set the "Business Transaction type" to 41 on the "Origin / Destination / Business" tab of the "Import" tab.
However, we also need to set the "Statistical value" on the "Decleration Values" tab but this field is greyed out.
The help message says:
The system determines statistical values on the basis of condition records with condition types GRWR and GWLB (subcontracting).
However it does not say where I can set this value. Does anyone know where I can set this value per material?
Many Thanks,
Colm

Can you explain why subcontracting is free of charge, I have never seen somebody doing some work without charging for it.
are you talking about the delivery of the materials sent to your subcontractor or the finished materials that you get back?
Usually the statistical value field can be maintained in VEFU. But I guess it interacts with the free of charge indicator in your case.
I just like to give you some explanation from the statistical office:
u201CProcessing under contractu201D covers operations (treatment/processing, mounting, assembly, enhancement,
renovation, etc.) resulting in the production of new or really improved goods on the basis of intermediate
materials provided free of charge by the commissioning party. Depending on whether processing under
contract is done within the country or abroad, the relevant terms used are u201Cinwardu201D and u201Coutwardu201D
processing under contract.
u201CProcessing under contractu201C in the context of intra-Community trade statistics covers intra-Community
cross-border movements of goods, provided the finished products produced on the basis of the
intermediate products provided through cross-border transactions will later leave the country of
manufacture (dispatch), being either returned to the original country of consignment (arrival; nature of
transaction u201C41u201C or u201C51u201C) or moved to another country (nature of transaction u201C42u201D or u201C52u201C).
What must be declared is both the cross-border movement of the (free) intermediate materials and the
subsequent (cross-border) return of the finished products.
(Note: Processing performed by the processor on own account is not processing under contract but is
generally covered as purchase/sale (nature of transaction u201C11u201D.)
For the declaration of the intermediate products provided free of charge (nature of transaction u201C41u201D), a
statistical value has to be indicated that corresponds to a selling price customary in the market (free
German border); in case of doubt a careful estimate should be used. When declaring the finished products
(nature of transaction u201C51u201D), the invoiced amount to be indicated is the costs of wage, material, transport
and insurance as invoiced by the contractor; for the statistical value, the statistical value of the
intermediate materials (provided free of charge) must be included, too.
(Note: Intermediate products returned to the commissioning party without treatment should be declared
under nature of transaction u201C51u201D, entering the value originally indicated.)
If, however, the commissioning party provides only parts that are insignificant in terms of function or value
(e.g. labels, screws, etc.), then there is no processing under contract. In those cases, such provision of
materials that is negligible in statistical terms is exempted from declaration for intra-Community trade
statistics. For the finished product supplied on a cross-border basis, a sale or purchase (nature of
transaction u201C11u201D) is regularly assumed, with the value of the materials provided free of charge by the
commissioning party exceptionally not being included when determining the value of the finished
products.
Also, there is no processing under contract if the contract work performed at the goods provided consists
of just simple activities (e.g. simple packaging, ironing, etc.). In such cases the goods exported or
imported temporarily within that scope are not covered statistically.
Examples:
1. A sports car is moved temporarily from Italy to Germany for tuning activities (e.g. power increase,
car body modifications). What is invoiced in addition to the labour costs is some car parts
purchased by the domestic contractor.
As the sports car is u201Creally improvedu201D by the work performed, this is u201Cprocessing under contractu201D,
which has to be declared under nature of transaction u201C41u201D for arrival and u201C51u201D for (re)dispatch.
2. For the production of a car in the Czech Republic, the engine gearbox unit and some other parts are
provided free of charge by the commissioning party located in Germany. For the import of the
complete car to Germany, the foreign producer invoices the car without the value of the engine
gearbox unit.
This is u201Cprocessingu201D of important components (both in terms of value and function) in connection
with the production of a u201Cnew goodu201D (car), i.e. the transaction u2013 by definition u2013 must be declared as
u201Cprocessing under contractu201D both for dispatch and for re-arrival.
3. For the production of an off-road vehicle produced in Austria, the German commissioning party
provides the company emblem free of charge. When the complete vehicle is imported to Germany,
the foreign producer of the off-road vehicle invoices the vehicle without the value of the company
emblem mounted on the vehicle.
Although the components provided are u201Cprocessedu201D, they are insignificant parts (company
emblem) both in terms of function and value, so that this is not u201Cprocessing under contractu201D but a
purchase (nature of transaction u201C11u201D) of a vehicle.
4. An older car is temporarily moved to Poland to restore the paint (washing, polishing and
conserving).
This is not u201Cprocessing under contractu201D in the context of intra-Community trade statistics because
the work performed consists of just simple activities. As this is u201Ctemporary useu201D, the cross-border
movement of the vehicle is exempted from declaration.

Settling Rebate through free goods in R/3

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