Free Goods - Not showing in sales order as subsequent item

[Former Member]

Dear Gurus,

I have created a Free Goods procedure determination and maintained it at Customer/ Material level in VBN01.

The procedure is inclusive as follow:

For every 100 units purchased, the customer gets 10 units free

However at sales order level there is no indication at all that the Free Goods are being triggered.

When I check the pricing procedure, the condition record NA00 that I have used doesn't show-up.

There is no subsequent item in the sales order under the main item showing the Free-Goods discount.

Could you please help me go through the customizing process to correct the error?

Many thanks for your help

Chris

[Former Member · Accepted solution]

Hello Chris,

Free goods determination should be doable. You must have configured all relevant Customizing from IMG>SD>Basic Functions>Free Goods.

To start with:

1. When you have maintained the Free Goods Condition Technique: Condition Tables, Access Sequence, Condition Types, Free Goods Procedure.

>>Tracing back, your free goods procedure has a sequence of your condition types; your condition type has the access sequence assigned; your access sequence has your condition tables in a sequence; a condition table has the key fields from the field catalog.

2. You must have activated your Free Goods Determination (V/N6).

>>It works like pricing procedure determination in OVKK i.e. Sales Area, Document Pricing Procedure, and Customer Pricing Procedure. Check that you have assigned/activated your free goods procedure in V/N6.

3. In your pricing procedure, you must have the standard condition type R100: 100% Discount

>>In transaction V/08, R100 should be in your pricing procedure where Reqt = 55: Free goods pricing, and AltCBV=28:100% discount

>>R100 should appear in your free goods sub-item to make it in effect "free"

4. You must have maintained your FREE GOODS CONDITION RECORD (VBN1).

Here you create your "Discount Type"or your free goods condition type found in your free goods procedure. HOWEVER, this condition type will NOT appear in your pricing procedure. It's just your "master record". This should not be confused with a pricing condition type. If it still confuses you, think of it in the analogy of a Listing/Exclusion type. You have a 4-digit code but it is different from a pricing condition.

>>What is important in your pricing is the R100 condition type. It should be present and is "Automatic Pricing" due to the pricing settings in #3 above.

RELEVANT DEPENDENCIES:

a) Item category assignment should support that you have a main item and subitem of different item categories

example: main item is pricing relevant while subitem is has pricing = B:Pricing for free goods (100% discount) in VOV7

b) Material master should also support the item category group and the usage for the item category determination of the sub-item item category

example:

Main item: Order Type/NORM/-/-/TAN

Sub item: Order Type/NORM/FREE(Optional)/TAN/<ItCa>

TIPS: Let's take one example for simplicity i.e. INCLUSIVE SCENARIO

a)Your inclusive free goods master record from transaction VBN1 should take care of proportionating your original order quantity with respect to your ratio of free goods inclusive item e.g. 10:1, then if you order 100 and you have an inclusive master record of 10:1, then

MAIN ITEM =

b)For example: IF YOU GO TO PRICING ANALYSIS

-For the main item, you should see R100 as "Condition ignored (requirement 055 not fulfilled)

-For the free goods subitem, you shouls see R100 as "Condition has been found (without condition record)"

SO IN A NUTSHELL: An INCLUSIVE free goods procedure setup correcly should lower the net value of your material based on the effective discount received from the "free goods" of the same material.

Example: Initial qty = 100, Free goods qty = 10, Price per unit = 7

>>Instead of 7*100 = 700 in your overall net value

>>>You will have 7(100-10)=790= 630 in your overall net value

The settings for EXCLUSIVE are the same except for the VBN1 free goods master record where you sopecify it's exclusive and you specify a different material as a free good.

Example: Initial qty = 100, Free goods qty = 10, Price per unit = 7

>>You will have a 7*100 = 700 in your overall net value

>>>But have 10 units free of the other material via the R100 discount

Please let us know if this helps you.

Good luck,

Eva

[Former Member · Accepted solution]

Eva,

You have a knack for explaining things in a clear and concise manner.

I thank you very much for your input.

Kind regards

Chris

[former_member365422]

However at sales order level there is no indication at all that the 
Free Goods are being triggered.

Since you are using inclusive free goods w/o item generation you will not find and message. Though system give message if you enter quantity less than required for free goods. Ex if Free goods is for 100 + 10, and if you enter quantity as 90 system issue message saying Minimum quantity 100 PC of free goods has not been reached.

When I check the pricing procedure, the condition record NA00 that
 I have used doesn't show-up.

Condition type NA00 is not price condition, it is condition type determination of free goods record

NA00 is used in Free goods procedure (V/N5).

Since you are using inclusive free goods w/o item generation there will be a condition type NRAB will appear in Pricing condition tab. NRAB is used only for inclusive free goods w/o item generation, this condition is maintained in pricing procedure with requirement 59 and alternative condition basis 29.

condition type R100 is used only if sub item is generated for free goods.

There is no subsequent item in the sales order under the main item
 showing the Free-Goods discount

.

Again since you are using inclusive free goods w/o item generation there will not be seperate line item in sales order.

If you want seperate line item go to VBO2, in free goods category column use 1 - Inclusive rebate (with item generation).

Hope this clears your issue

Regards

Mayank

[Former Member]

Hi,

FYI

Free goods can be configured in SAP by following two methods.

(1) Manually

(2) Automatically

Manually: By specifying higher level item category for a line item we can determine free goods as a free of charge

items during sales order processing.

Automatically: System proposes free of goods automatically in the sales order. In automatic free goods

configuration system follows two methods.

(1) Exclusive

(2) Inclusive

Exclusive: System configures free goods in exclusive option like free goods quantity is going to be excluded in

order quantity. Ex: For 10 items 1 item is free. Then system configures free goods as 10 + 1.

Inclusive: System configures free goods in inclusive option like free goods quantity is going to be included in order

quantity. Ex: For 10 items 1 item is free. Then system configures free goods as 9 + 1.

NOTE: In exclusive method other items also can be given as a free of charge items for order item.

Configuration steps: INCLUSIVE

SAP follows condition technique to configure free goods automatically.

Maintain pricing procedure

Path:

IMG

Sales and distribution

Basic functions

Free goods

Condition technique for free goods

Maintain pricing procedures

Choose free goods procedure NA0001 and select it

Click on copy icon on application tool bar and rename it Ex: SRI001

Condition type is NA00 and Access sequence also NA00

Save it and Exit

Activate free goods determination

Path:

IMG

Sales and distribution

Basic functions

Free goods

Condition technique for free goods

Activate free goods determination

Go to new entries

Specify our sales area, document pricing procedure, customer pricing procedure and specify our free goods

procedure Ex: SRI001

Save and Exit

Control free goods pricing

Path:

IMG

Sales and distribution

Basic functions

Free goods

Control free goods pricing

Control pricing for free goods item category

Choose item category TAN from position button

Specify the pricing as X = Pricing standard

Choose item category TANN from position button

Specify pricing as B = Pricing for free goods (100% discount)

Save and Exit

Maintain condition type for 100% discount

Path:

IMG

Sales and distribution

Basic functions

Free goods

Control free goods pricing

Maintain condition type for 100% discount

Check whether condition type R100 is available or not (R100 = is 100% discount)

Exit

Maintain pricing procedure for pricing

Path:

IMG

Sales and distribution

Basic functions

Free goods

Control free goods pricing

Maintain pricing procedure for pricing

Choose our pricing procedure form position button and select it

Click on control data icon under dialog structure

Include condition type R100 between the steps of discounts.

Specify requirement = 55 and Routine No: 28 (100% discount) in Alt. CBV.

Save and Exit

Requirement 55: The Routine No. 55 is assigned to condition type R100. If the user wants to look both revenues

and sales deductions for the free items since the product that we are going to give as a free of charge item can be

sold separately in the same sales order. Then the item category of free goods TANN has the pricing value as B.

Then the system calculates value of the free goods as 100% discount as we discussed above the same material [that

is going to be given as a free of charge item]. Some times the same item is going to be given as a normal item.

Then system calculates price for normal item and system should not calculate price for same item [free of charge

item]. So as to perform this calculation we have to assign Requirement/Routine 55 is to assign condition type

R100.

Alt CBV = 28: [100% Discount] Condition type R100 should be taken as a ZERO value. The formula 28

calculates condition type R100 value as a ZERO.

Set Transfer of cost to Main item: [Copy control]: Transaction code: VTFL

Copy control is a concept by which the system copies the data from source document to target document.

Path:

IMG

Sales and Distribution

Basic functions

Pricing

Free goods

Control free goods pricing

Set transfer of cost to main item [copy control]

Choose Billing type F2 Delivery document type LF from position button

Select it and click on itemicon under dialog structure

Choose item category Ex: TAN

Click on details icon

Click on display or change icon

Choose item category as TAN again

Select it and click on details icon

Check cumulative cost

Save and Exit

Cumulative cost controls whether the cost value (VPRS) is to be copied from relevant sub items into main items.

Sub items cost are not relevant for billing.

Maintain copying control: Transaction code: VTAA

Path:

IMG

Sales and Distribution

Basic functions

Free goods

Control free goods pricing

Maintain copying control

We maintain copy control at item level category for free goods. In this field we can control whether the

free goods should also be transferred when we copy from one document to another document.

Choose source document type as QT and target document type as OR from position button

Select it and click on item control button under dialog structure

Choose AGN item category from position button

Click on display or change button

Again click on AGN

Click on details icon

Check Re u2013 explode structure/Free goods

Save and Exit

This indicator controls whether the free goods are copied from source document to target document or redetermined

again.

Maintain condition records for Free goods [INCLUSIVE]: Transaction code: VBN1

Path:

Logistics

Sales and Distribution

Master data

Conditions

Free goods

VBN1 u2013 Create

Specify condition type NA00

Click on key combination

Specify all the data

Choose inclusive by clicking the INCLUSIVE/EXCLUSIVE push button

Specify the Material No., Minimum order quantity (Ex: 10), Specify [from] the free goods quantity (Ex:

10), Unit of measure u201CEAu201D (Each), Free goods (are free goods) as u201C1u201D.

Calculation procedure: We can specify the Routines for calculation procedure as 1 or 2 or 3

1 = Pro u2013 Rata (Proportionate): Ex: If the customer places order for 100 cases of material u201CXu201D, then customer

receives 20 cases of same material as free. That means, the business can say that buy 100 and get 20. If the

customer orders for 162 cases, then system automatically grants 32 cases as a free of cost (162x20/100 = 32 Cases).

2 = Unit of reference: When customer orders for 100 cases of material u201CXu201D, then the customer receives an

additional 20 cases as a free of goods. That means business can say that buy 100 get 20 free by granting 200 free

for every full of 100 cases. The customer places order for 162, then system automatically grants only 20 cases

(100x20/100=20).

3 = Whole unit: When a customer places order for 100 cases of material u201CXu201D, then the customer receives additional

20 cases of material u201CXu201D as a free of goods item. The business can say that buy 100 and get 20 free of charge items.

If the customer orders for increment of 100 that means 200 (100 + 100) items, then he gets 40. If he placed the

order for 101 u2013 199 items he gets only ZERO.

Save and Exit

Condition record for EXCLUSIVE: Transaction code: VBN1

Path:

Logistics

Sales and Distribution

Master data

Conditions free goods

Specify the discount type u201CNA00u201D

Click on key combination

Click on Choose inclusive by clicking the INCLUSIVE/EXCLUSIVE push button

Specify the sales organization, distribution channel

Specify customer number and validity periods, material, minimum quantity, order quantity, unit of

measure, calculation procedure, free goods (3)

Specify additional material free goods (if other goods is going to be given as a free of charge item.

Save and Exit

Go to VA01 and raise the sales order for INCLUSIVE and EXCLUSIVE.

See the Free Goods effect.

Condition type NRAB = Free goods: Requirement = 59, Alt CBV = 29: [only for INCLUSIVE purpose]

Requirement 59: We have to assign requirement 59 to the condition type NRAB. If the customer buys 100 cases

of product u201CXu201D, then he receives 10 cases of the product free. If the user would not like the additional line item in

the sales order for free goods rather than the discount of the 10 cases is represent in the same line item as other 90

cases. If the free goods discount should not apply on credit for returns that do not make reference in the previous

document.

Alt CBV 29: The condition type NRAB is to be assigned with 29 formula to support inclusive free goods

agreement where the user would have to apply the discount to the order item rather than having a sub item

generated for the free quantity.

Ex: The customer orders for 100 cases of product u201CXu201D, 10 cases are free instead of having a free sub item generated

b the system to represent the free 10 cases, the user would like to have a discount applied to the 100 cases line item

equal to the value of the 10 cases.

NOTE: Free goods can only be configured on document category type u201CCu201D (OR). That means we cannot configure

free goods on Inquiry and Quotation.

Header Conditions

SAP has delivered two kinds of condition types: (1) Header conditions

(2) Item conditions

Header conditions: The value of the header condition applies to the whole items in the sales document.

Header conditions do not have any access sequence.

So that, value of the header conditions should be maintained manually.

Ex: HA00, HB00

Configuration settings:

Include condition types HA00, HB00 in V/08 in between the discount condition types.

Go to VA01 and raise the sales order

Select line item and go to Go to button

Header Conditions

Include condition type HA00 HB00 with values [HA00 is percentage discount and HB00 is absolute

discount]

If HA00 = 1%, then system applies 1% on base value on all items in the sales order.

If HB00 = 100/- Rupees, then system applies 100/- Rupees proportionately to all items in the sales order. If sales

order has two items, then system applies 50/- Rupees to each item.

Click on activate button

Go to item condition screen

Check how system applied header conditions for line items

NOTE: Make sure that sales order contains more than one item.

Condition Scales

We can maintain scales for each and every condition type. So that we can determine pricing conditions values

depending upon the range of the order quantity.

Ex: If you maintain condition record for PR00 for material one as a 100/- Rs. For 1 material, then we can maintain

scales for this material like below:

From Quantity Price

1 u2013 10 1000

11 u2013 20 999

21 u2013 30 998

31 u2013 40 997

Configuration settings:

Go to VK11

Maintain condition record for PR00

Select line item and click on scales icon on the application tool bar

Maintain scales and scale rates accordingly

Save and Exit

Go to VA01 and raise the sales order

Enter the order quantity according to the scale and see the scale effect

Regards,

Siva