Free of goods should come automatically back when creates return sales order

[Former Member]

Dear sd experts

I Know one thing that free goods wont come back ,, for ex when we create return sales order free goods wont come bz in VTAF copy requirement 302

it means dont copy free goods

Now i went VOV7--- for item category TANN-- i have maintained billing relevance A it means free goods items will come in to billing

now when i am creating return sales order with reference to billing Free goods are not coming

              My doubt is suppose if  my clinte asks free goods   will come automatically when creates returns how to do it ?

[moazzam_ali]

Dear

If your client asks this, you cant suggest them that this is possible but usually Free goods are not relevant for billing neither we create return for them but if client asks then this is possible.

Thank$

[former_member184080]

Dear Ali,

Yes, it will not have any impact on your billing value. I would like to add one point here.

In some business, the best example is life sciences industry as per the norms if there is a fault or defect in the product, they have to recall all the products even if it is a free good.

Regards, Sai Krishna.

[moazzam_ali]

Then this sale return must be with reference to sale order, not billing document. Am I right?

[former_member184080]

Hi Ali,

Since the batch plays major role here, we have to do with reference to billing. Correct me if its wrong.

Regards, Sai Krishna.

[Former Member]

Dear ali sir ...Sorry for interruption

Free goods always must be reference with  sales order only when creates returns but suppose if we keep in item category Billing  relevance  if we keep A , free goods will come to billing also

In the case can we do it ?

[moazzam_ali]

Dear

Lets take an example. If TAN and TANN are used for free goods. TAN is normal item and TANN is free goods. TAN is billing relevant but TANN is not. So it means in billing document there will be only TAN. Now if we create sale return w.r.t that billing document then how system will copy TANN.

Are you talking about activating free goods on RE and determine free goods again?

Thank$

[moazzam_ali]

Venu

I hope my above post will give your answer. If not then please explain with scenario.

Thank$

[former_member184080]

Dear Ali,

Yes, you are correct. But, my example applicable only if you have TANN in billing. In my client scenarios, we have TANN qty at billing level as well.

Regards, Sai Krishna.

[moazzam_ali]

Dear Sai

Why you are taking TANN in billing? What will be the accounting entry for TANN billing? Are you going to charge this to some expense GL or what? Please share the scenario if possible.

Thank$

[former_member184080]

Dear Ali,

Yes, we have created a Item category called ZTNN for which billing relevance = A and Pricing = B.

In pricing we have used R100 condition type which has account key.. In VKOA we have assigned expense G/L account.

So when we create Invocie, its getting posted to expense account.

Regards, Sai Krishna.

[Former Member]

Dear ali sir ,,

I have never tried free goods returns and now i dont have access plz tell me if i am wrong

IN sap free goods returns Directly not possible ,bz this is standerd one it means company should send quality products to customers

And if we check in copy control VTAF t.code copy requeierments   field here for tann Item category 302 Is there it means dont copy 

am i right ( i am asking directly free goods wont come back

plz give me your conclusion , i could have tryed my system but due to some technical problems ides is not working 

[moazzam_ali]

Thanks for sharing. I know this process. But tell me one thing that on which price you are booking its expense. For example if we have a mterial with cost price of Rs 50 and its sale price is 75. Now when you do PGI system posts entry with CGS debit and stock credit. In free goods billing you create VF01 for ZTNN then at which price you will post its expense? on 75 or 25?

Thank$

[moazzam_ali]

Dear Venu

Yes you are right. In normal practice we don't take FOC items in sale return. But OP has asked that what if management or client asks to take FOC sale return. We are suggesting that this is possible with settings. When you'll have access to your system you can check.

Thank$

[former_member184080]

If i am not wrong we are posting 75. Anyway, will give you complete details by Monday.

Regards, Sai Krishna.

[moazzam_ali]

Dear

If it is 75 then dont you think you are charging expense twice. One at delivery to cost of goods sold and second on invoice. I had this scenario once and I just want to clear my understanding.

Thank$

[former_member184080]

Hi Ali,

I just checked and understand in the below way:

When I Do the PGI system is posting say 50 USD to COGS. But, when I do the Invoice ( 100 USD is credited to sales account and 100 is debited to discount account) So at the end 100 is getting Nullified. But, when we see P&L account you will COGS of 50 USD.

I checked along with my FI consultant and she confirmed that its posting as per expected way only.

Let me know if you need more details here.

Regards, Sai Krishna.

[moazzam_ali]

Dear Sai

I got your point. I was also thinking the same and this is the right way. I have also discussed with our FI consultant and she is also agree with this. Thanks for your help.

Thank$

[former_member184080]

Hi Geetha,

You must be missing the config at Intem category assignment. ( I assume that you are doing Exclusive free goods)

In the Item category determination : Have the combnination with your return order type, Item category group, Usage, Higher level Item category (REN) and Default Item category as RENN.

Please let me know the results.

Regards, Sai Krishna.

[Former Member]

Dear ali and sai

1)My Requirement is if i create return sales order automatically free goods should come back automatically ?

what setting i will do

2) If is it possibility to do returns with relevance billing any affects be there /

[former_member184080]

Dear Geetha,

As I mentioned in my earlier reply, please have Item category assignment for your return order type - Item category group, Usage (free), Higher level Item category (Standard SAP - REN) and default Item category as RENN.

I assume that you have copy controls for billing to Return order type.

As far as I know you shouldn't have any problems if you refer to Billing document.

Regards, Sai Krishna.