Difference between Free goods and BOM (ERLA)

[Former Member]

Hi,

Could any body throw some light on the Difference between Free goods and BOM(ERLA) to clarify my weired thought.

AS of what i know is Free goods is 1:1 ratio.

The main item will be prices and sub item will be free .

Than same thing is also With BOM (ERLA)

Regards,

Venksys

[Former Member · Accepted solution]

Hi,

Yes, You can use it that way. But the only difference I can think off is that in Free goods, you can only 2 line items ... i.e. 1:1 as you have said. However, if you use BOM, I think you can put in more line Items in the sales order as free. i.e. 1:2 or 1:3.

Hope this helps...

Regards,

Mukund S

[Former Member]

thanks

[Former Member]

Hi Venkys,

Please go through the following and this may be helpful to undestand your querry.

Free goods can only be supported on a 1:1 ratio. This means that an order item can lead to a free goods item. Agreements in the following form are not supported: u2018With material 1, material 2 and material 3 are free of chargeu2018 or u2018If material 1 and material 2 are ordered at the same time, then material 3 is free of chargeu2018.

Free goods are not supported in combinations with material structures (for example, product selection, BOM, variants with BOM explosion).

Free goods are only supported for sales orders with document category C (for example, not quotations).

Free goods are not supported for deliveries without reference to a sales order.

Free goods cannot be used in make-to-order production, third-party order processing and scheduling agreements.

If you defined a free goods for variants in a generic article (only SAP Retail), you can only process the variants in the purchase order and goods receipt individually (as single articles). In other words, you cannot process them using the generic article matrix.

Please let me know your thoughts.

Thanks and Regards,

Satheesh

[satish_talikota]

Hi,

From the business context point view,

Free goods is a promotional aspect to existing / new customers, applicable in SD.

BOM goods is a product specification aspect, applicable well in logistics modules such as SD, MM, PP etc..

Regards

Satish Talikota

[Former Member]

hi ,

free goods are goodw given free with item cat as tann

whereas erla is the category of the B.O.M. COMPONENTS OF MATERIAL and it comes ffrom the m.m.r. of a main item

like in case of a scooter sale if you erla in the mmr of a scooter than the system will populate the components like engine and types of other maerial by default depending on cs01

regards

Mohit Singh

[Former Member]

Hi Venksys

Please note as given below :

Free Goods : This function allows you to offer your customers a product free of charge in the form of free goods when a certain quantity of products is ordered. Free goods is a kind of quantity discount, and is granted in the form of a goods delivery that is free of charge when a certain quantity is purchased. There are Two types of free goods :

1.Inclusive : The customer only pays for part of the goods ordered. The rest of the products are provided at no extra cost. For example, a customer orders for 3 bottels but pays for 2 bottels and 1 is supplied free .

2.Exclusive - The customer pays for the goods ordered, and also receives additional products for free. The materials delivered as free goods will not be the same as that of ordered onces. For examples customer orders 5 bottels , but will receive 1 Bottle opener free.

BOM : It consists of 2 or more items combined and sold as an package : Example : Combination of 1 Tooth paste + 1 tooth brush packed as BOM.

The Higher level Material ( BOM) is not relevant for pricing but relevant for picking : The tooth paste and brush is relevant for pricing and also can be sold independently : The Item cat group of the Header BOM material will be ERLA and for Tooth paste and brush material the Item category group will have TAN.

For more details , please refer to the link below:

http://www.sap-img.com/sap-sd/what-is-bom-referring-to-sap-sd.htm

Thanks and regards

Veera

Edited by: veera PV on Jan 24, 2011 9:06 AM