Free Goods Determination Procedure

[Former Member]

Can anyone simply tell me free goods determination procedure with an example?

Thanks

[Former Member · Accepted solution]

Free Goods Determination

Not all Sales Order can be used for free goods determination. You have to check the SD document category if it does not work. Only category 'C' are supported. Check transaction VOV8.

Assume that you want to configure an inclusive FREE goods routine. Customers must order a minimum quantity of 5 before any free goods can be assign. For every quantity of 3, the customer will be given 1 free goods.

WC07 - Maintain Number Range Intervals

e.g.

No From number To number

01 0000010000 0000099999

IMG -> Sales and Distribution -> Basic Functions -> Free Goods ->

Maintain Access Sequences

New Entries

Acsq

NA00

Save

Maintain Condition Types

New Entries

Ctyp Name AcSq

FREE Free Goods NA00

Save

Maintain Pricing Procedures

Procedures

New Entries

Procedure Description

FREE Free Goods

Select Procedure FREE then click Control data

Step Cntr Ctyp

10 10 FREE

V/N6 - Activate Free Goods Determination

Assign Order Type OR with Document Procedure A with Procedure FREE

VBN1 - Create free goods determination

e.g. FREE inclusive

Material Min qty From are free good Calc Rule Free Goods

5 3 1 1 1

In this example, if you create a Sales Order for a quantity of 10, SAP will prompt you 7 as the customer order qty and 3 will be free. Customer only pays for the 7 quantities.

Regards,

Rajesh Banka

[Former Member]

In many sectors of industry it is common to provide products free of charge, or not to charge the customer for some of the goods sold when a customer purchases certain goods.

The following forms of free goods exist:

Inclusive

The customer only pays for a part of the goods required. The rest of the goods are free. This is called Inclusive free goods and means that part of the purchase quantity is designated as free goods and is not billed.

The material supplied as free goods always has the same unit of measure as the purchased quantity.

Of ten bottles of wine, two are designated as free goods. If you order ten bottles, then ten are delivered but you are not billed for two of them. You have received inclusive free goods.

Exclusive agreement,

The customer pays for the goods ordered and receives additional goods. This is known as exclusive free goods and means that free goods is granted for an additional quantity to that in the purchase order. More is delivered than was ordered and the additional quantity is not billed.

The goods delivered as free goods do not have to be the same as material ordered.

When four coffee machines are ordered, the vendor supplies a packet of coffee as free goods. Therefore, if you order four coffee machines, you receive a free packet of coffee.

Free goods is currently only supported on a 1:1 basis. This means that an order item can only be the source of one free goods item. This means that agreements involving relationships such as 'Buy material 1 and get material 2 and material 3 free of charge' or 'Order material 1 and material 2 together and get material 3 free of charge' are not supported.

Free goods is not currently supported in combination with material structures (e.g. product selection, bills of material, variants with BOM explosion).

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

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

Free goods is not currently supported for make-to-order production, third-party order processing and scheduling agreements.

[Former Member]

hi,

You have to maintain access sequence NA00 and assign to contition type NA00. Assign Condtion type NA00 to Free goods determination procedure NA000.

Assign procedure to Sales area + Doc pric proc + Cus pric proc same as Pricing procedure NVAA01.

Two types of free goods.

Inclusive and exclusive

difference between two are

in Inclusive, Customers ordered quantity and our delivery quantity should be same.

Ordered material and free goods material should be same.

In exlusive, delivery qty will be greater than customers ordered qty.

free goods can be of same or different material.

Calculation rule

1 prorated

2 related to units

3 whole unit

for 100 qty the free goods is 20

say if customer orders 162 units

1. prorate 130 + 32 free goods

2 related to units 142 + 20 free goods

3. whole unit 162 + 0 free goods.

bye

sara

[Former Member]

Hi,

Free goods is basically a marketing gimmick or it is used to increase the sales volume. It is used to lure the customers to buy more products. The configuration path is as follows:

IMG-sales & distribution-basic functions-free goods-condition technique for free goods-

1. create the condition table. Here you select your key combination as per which you will maintain the condition records.

2. maintain the access sequence and assign the condition table to the access sequence.

3. Maintain condition types and assign the access sequence to the condition types.

4. Maintain pricing procedures. Here yyou create the procedure for free goods determination and assign the condition type to the procedure.

5. Activate free goods determination. Here you asign your free goods determination procedure to sales area, document pricing procedure and customer pricing procedure.

6. VBN1-create condition records for free goods.

In SAP there are two types of records of free goods one is Inclusive and the other is exclusive.

Inclusive- buy 2 get 1 free.

Exclusive- buy 2 and get 1 free.

The total qty in inclusive will be 2 only you will pay for 1 and get 1 free of cost. Bothe the main item and the free good will be the same material.

The total qty in exclusive will be 3, you will pay for 2 and get the third one free of cost. The main item and the free good item will be different.

So when you go to VBN1 the system by default will show you inclucive. When you click on exclusive it will change from inclusive to exclusive. here you mention the minimum qty for free goods to be applicable. Also you mention here on how many main tiems you will give how many free goods.

I hope this answeres your query. Reward valuable points if solution helps.

Regards,

Allabaqsh G. Patil

[Former Member]

Hi,

Free goods is something that the customer is given after he buys certain quantity of the product/material.

Free goods is a strategy to increase sales volume by luring the customer that if he buys 10 products one will be absolutely free.

Free Goods:Goods that are given as additional goods as part of the ordered goods are called as free goods.Here the unit of measure of free goods should be the same as standard goods.

Example:If you are are ordering 10 maggi sauce bottle you will be paying for only 8 bottles 2 is given as freegoods.

price will not be reflected in pricing or billing.this is inclusive freegoods

Exclusive freegoods.

wherein the freegoods are given as additional good to that of the ordered goods

Example:For 4 coffee vending machine 1 kg coffee powder isgive as free goods

Sample goods:these are the goods which are given as pert of the promotional activity to increase the sales.

here the customer is not paying money.

Free goods - In SAP there are two types Exclusive and Inclusive.

Exclusive - Buy 2 and get 1 free. This means you have to buy minimum 2 pieces then on that you will get 1 piece absolutely free.

Inclusive - Buy 2 get 1 free. In this case it means you are paying for only 1 item and the other item is absolutely free.

Configuration:

IMG - Sales & Distribution - Basic Functions - Free Goods - condition technique for free goods -

1. create the condition table.

2. maintain access sequence and assign the condition table to the access sequence.

3. maintain condition type and assign the access sequence to the condition type.

4. maintain the procedure for free goods and assign the condition type to the free goods procedure.

5. Activate free goods determination. In this enter sales org., dis channel, division , docu pri pro, cust pri pro and the free goods procedure.

6. now go to VBN1 - create free goods determination. Select your condition type, key combination and enter. Here you enter sales org, dis channel, customer no., Valid from and Valid to dates. Then you first select whether it is exclusive or inclusive free goods determination. By default it will be inclusive if you click on exclusive it will become exclusive and on top it will display inclusive. Here you enter minimum quantity for free goods and from what order quantity the number of free goods. You can control the delivery also in the second last column(free goods delivery control).

Save the record. Go to VA01 create the sales order , enter the item and the minimum quantity for free goods to be applicable and observe the results.

Hope this will solve ur problem.

Plz reward Pts for useful answer.

Thx & regards,

Pankaj

Message was edited by:

Pankaj Mahajan