How to Process Free Items in SD

[Former Member]

Hi,

Our scenario is like this.

We get free merchandise from our supplier. That free merchandise will be included in our inventory thus affecting the Moving Average Price of that item.We also sell the free merchandise to our customer thru SD.

Now we will be having a promo. Those free items that we are getting from our supplier which has already been included in our inventory will be given out as a free item. If we are going to process this thru regular SD processing, there will be recording of cost of sales, sales and output tax. Which should not be the case since those are free items.

Is there a way to process this?

Thank you.

[Former Member · Accepted solution]

Hi Rachel,

In my view, as you are adding the Free Items to your inventory, then it means you are increasing your Stock Qty. and correspondingly the Average value of Stock will be decreased. Now while doing the sales process, you do the Delivery Transaction to decrease the stock and accordingly your Average inventory will be adjusted.

For sending the Material outside your compay, you can simply create a Proforma Billing for that Customer, so this proforma Billing will not hit the Customer and Sales Accounts in Finance.

Regards,

Vishal

[Former Member · Accepted solution]

Hi,

This should affect our Inventory in the sense that it should be deducted though will not affect cost of sales.

Since those free items received from our supplier are added to our inventory and will be part of the selling.

But for our incoming promo, those free items will be given out as free also. But the thing is, it was already included in our inventory. If we are going to record those free items, it would only affect our Mdse Inventory but not our cost of sales.

Thank you.

Rachelle

[Former Member · Accepted solution]

Mr. Lakshmipathi,

We have already followed your advise.

We have successfully created PO and GRd the nonvaluated material.

But when we are already creating sales order, system is requiring us to enter net value.

How can we correct this?

Thank you and regards,

Rachelle

[Lakshmipathi · Accepted solution]

when we are already creating sales order, 
    system is requiring us to enter net value

For this, you need to maintain the selling price in VK11

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Mr. G,

We have already entered .00 vaue (free item) in vk11. But we still encountered the net value requirement in sales order.

thank you.

Rachelle

[Former Member · Accepted solution]

Hello,

You can process the order will Item Category TANN.

Else create a Z item Category and untick the pricing and Billing relevance from it.

Regards

Prashant Ranalkar

[Former Member · Accepted solution]

Dear Sir,

Why dont you create 100 % discount condition ( manual ) and include it in the pricing procedure e.g z100. Then maintain vk11 for it. This will make your net value as zero.

pl get back.

regards,

santosh

[Former Member · Accepted solution]

if i am correctly able to understand your requirement , You are trying to include these promo items also along with the other (valuated) materials in a single sales order then change the item category as TANN for the free of charge items manually in the sales order.

by doing this the system will consider it as a free of cost material and at the time of post goods issue the stock qty will also get debited from your inventory and will have no value impact in your invoice.

to facilitate this you need to mainatain the relevant item category determination in spro>sales & distribution>sales>sales documents>sales document item-->assign item categories.

Regards

Sanjeev

[Former Member · Accepted solution]

Hi,

This is what i did for the Free Items.

I created sales type for the Free items. Then assign item categories to the sales type created.

I have successfully created sales order using the existing material items.

Now when i am trying to do outbound delivery i am getting a message that

>>Copying is not possible because an entry is missing in Table TVCPL:ZFG LF

>>Copying is not possible because an entry is missing in Table TVCPL:LF ZFG ZVBN

Im lost on how to proceed.

Thank you.

Rachelle

[Former Member · Accepted solution]

Hi,

In VTLA, Select your free sales order type doc and the delivery doc.In Header you maintain

Order requirements=001

Combination requirmt=051

Header Data=001

Header Data Ext. Sys=0

Handling Units=000

Then add your free goods item category(ZFG) and maintain

Order requirements=101

Item data=101

\business Data=2

Check Doc flow and In Pos/Neg Qty =+

Hope by doing this you can do the delivery.

Regards

Subhasish

[Former Member · Accepted solution]

Hi,

I have already maintained those in vVTLA but am still getting the same error.

Thank you.

Rachelle

[Lakshmipathi]

That free merchandise will be included in our 
 inventory thus affecting the Moving 
    Average Price of that item

I am sure, you would be maintaining a different material type for this. So go to OMS2, select that material type and double click on "Quantity/value updation". Now again select the plant and material type and untick the box under "Value Update" and save.

Now your inventory value will not affect in anyway when you inward the material.

thanks

G. Lakshmipathi