items given for free

[Former Member]

Hi,

I need a list of the most commonly used scenarios where an item is given away free. And then a detailed listing of the pros and cons... plus what happens to the accounting document... the invoice and other things?

[Former Member · Accepted solution]

Hi there,

Free of charge scenarios is used in the following cases:

1) when a new product is launched, free samples are sent to the customers. Order type used here is FD free of charge delivery.

2) free goods is given along with other products. For eg when a customer buys 10 quantities of item X, either 1 quantity of item X or Y is given free (inclusive / exclusive). Standard order OR is used here.

3) For eg out of 10 items sent to the customer, 2 items are damaged in transit / of bad quality, replacement products are sent to the customer. Subsequent delivery free of charge SD is used here. SD is usually created against a returns RE order.

In all the above cases free of charge item is TANN item catg where the item is relevant for billing but pricing is not carried out. Pricing field in VOV7 is not checked for TANN.

It is upto the company to decide if they want to charge freight tax for the free goods.

Regards,

Sivanand