Related to "Free Goods"

[Former Member]

Dear SAP Experts,

How to configure a scenario where :

1 Scene: Sales without free goods:

Earlier company was selling a shaving cream 150gms for 100 INR (MRP) and was paying some 10% tax to government.

2 Scene: Sales with free goods:

Now company wants to give 20 ml shampoo sachet along with the shaving cream pack of 150 gms.

On both the products company has to pay 10% tax to government.

Product MRP Tax

Shaving cream 100 10%

150 gms.

Shampoo 10 10%

20 ml

Earlier company was managing the same in 100 INR.

Now they have to give free goods too, so how it can be managed in SAP.

what are the configurations required to do in free goods determination procedure including pricing procedure.

Please tell some options ?

Thanks in advance.

[Former Member · Accepted solution]

Hi,

Could you please send me your e-mail id so that i can send some information on configuring Free Goods?

Regards,

Pramod.

[Former Member · Accepted solution]

Thanks

anubhav_srivastava80@gmail.com.

Pls mail the material.

regards

[Former Member · Accepted solution]

Hi pramod,

Thanks for replying.

My id is anubhav_srivastava80@yahoo.com.

Please mail the material soon

regards..........

[Former Member]

Hai there,

Every one is telling how to configure Free Goods but no is talking about how tax has to be included in the sales order value for the free item since we have to pay the appropriate tax to the government for the free item also.

This is a very interesting topic and any good replies will be of great help to one and all.

Best regards.

VENKAT

[Former Member]

Thanks Venkat,

Every body focussed on what I know.

I wanted the same that U emphasized.

Regards....

[Former Member]

Free goods comes in 2 categories

1-Exclusive- like in your case Shaving cream + shampoo

2- Inclusive-Like shaving cream+ shaving cream

For creating a free good it is necessary that the pricing procedure NA0001 is maintained. U can maintain it by going to the path IMG--->Sales & Distribution->Basic functions->Free Goods--->maintain Pricing procedure.

Here maintain UR procedure as Z or use the stndard one.

Pricing procedure is determined by Sales area, Document pricing procedure(A) & Customer pricing procedure(1).

NA0001 PP has condition type NA00 and the access seq. NA00.GO to vbn1 to create the condition record-

Highlight the Exclusive button as ur case include other material as free item.

Enter your Sales area ,material,Min Qty,From(how many units are the free goods ),Calculation and SAVE.

Now when ull craete ur Order in VA01 you will get the Shaving cream as Main item and Shampoo as Subitem.

NOTE:The item category of the main item will be TAN and for the subitem being the free goods will be TANN.

[Former Member]

Hi Anubhav

Free Goods

Also referred as discount in kind. Business can consider to offer discount not in monetary terms but in the form of free goods, ie goods provided without any charge when a particular quantity of material is purchased by the Customer. SAP provides two methods:

a) Inclusive

b) Exclusive

IMG—SD—Basic functions—Free Goods

Condition technique for free goods

Select maintain Pricing procedure

Standard procedure is NA0001

Copy as ZA0001

Copy all

Save

The Pricing procedure NA0001 contains the Condition Type as NA00—free goods

NA00 has the Access sequence as NA00

Select activate free goods determination

Assign the procedure to sales areas using document procedure and customer procedure

Select your sales area and assign

S002 SB SX A 1 ZA0001

Save

A= Document Procedure (determined based on doc)

1= Customer procedure (Determined from customer master)

We have to maintain free goods condition records

SAP menu—Logistics—SD—Master data—Conditions—Free Goods—VBN1 Create

Discount type: NA00

Continue

Enter sales org, distribution channel and Customer

By default the entry screen is for Inclusive, Select Exclusive button to maintain Condition Record for Exclusive

Inclusive: Continue, as it is to maintain the record

Material: Product ID

Min Qty: Minimum qty required to be ordered (10)

From: From how many units free goods are considered ie 10

Unit=Unit of measurement of ordered product

Are free Goods: quantity free

Add= The unit of measurement of free goods item

Calculation: 1 Prorata

save

What is the other requirement?

The pricing procedure should contain the Condition type R100 that is free goods condition type. This condition type in the Procedure has requirement as 55

(55 means only if the item is free goods then only value of R100 to be used in the calculation. Value= controlled by Alt condition base value 28 which states that discount should be 100%)

Check whether your pricing procedure is created from scratch then you have to maintain the Condition type R100, requirement as 55 and altcbv= 28

If you have copied from RVAA01 there is no need to maintain R100, as it is already available

Create the order

Ordered qty is split into two items

M1 30 Pcs

This will be split as

M1 27---Item cat TAN—regular pricing

M1 3—Item cat as TANN eligible for 100% disc

How the item category is determined

Main item:

Z1OR + NORM+TAN

Sub item

Z1ORNORM Usage= Free + Higher level item cat as TAN= TANN as sub item – Item category

Exclusive

VBN1

Select Exclusive

The screen fields are same as inclusive except here there is a provision to add the material number of free good material, which is different from the material ordered. If left blank system takes both as same material

Reward if useful to u

[Lakshmipathi]

Hi Anubhav

Check the link

http://help.sap.com/saphelp_47x200/helpdata/en/dd/55fa4e545a11d1a7020000e829fd11/frameset.htm

Thanks

G. Lakshmipathi