free goods accounting

[Former Member]

dear all,

We are facing one problem in free goods scenario.

i.e: higher level line item is a sale and values are passing to accounts.but free goods for the higher level line item is not a sale it s issued as free.

now question is whether free good item value should pass to accounts or not????????

In billing ,free good line item is showing zero value. but it is posting values to accounts.

but our client wants free goods not to be posted to accounts as it is not a sale item.

is there any documentation on this if any?

thanks

shankar

[Former Member · Accepted solution]

Hi,

Free goods also will have pricing as performed for the normal (higher level item) and all the sales revenues and sales deductions like discounts will be updated in the respective GL accounts. You can observe this in the item conditions of that particular free goods line item. After calculating all the values finally the R100 condition types determines 100% discount.

Again as per my understanding Do Inclusive Free Goods so that the value for the items which are having calulated will only post into accounting.

Thanks,

raja

[Former Member]

Hi shankar,

even free good item also salable item,but some times we use to give free item

NA00 is linked toR100 thats why it is 100% discount

values are passto account

if you don't want post to account you should maintain material master in accounting tab material price '0'.it will post but as a '0'

[Former Member]

thanks for response....

[former_member184555]

Hi

Guess, this will not happen if NRAB condition type is triggered for free goods instead of R100. Please create the free goods condition records and select 'free goods inclusive without line item generation' and try to create the order and check in the item conditions - whether the pricing is done for all the items or not. I remember it doesn't calculate for the free goods.

Thanks,

Ravi

[Former Member]

Hi friend,

Your problem can be resolved by going to Copying control: Delivery document to billing document T.code VTFL select the relevant billing and delivery document and the concerned item category and in Cumulate cost maintain as yes. This function is needed especially if the sub-items involved are not relevant for billing. In this case the costs of these sub-items do not appear in CO-PA or the statistics.