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Free goods for SAP SD basics (Free Goods)

In some industries, such as retail, chemical and consumer goods, discounts are usually offered in the form of free goods.

Free items can be part of the order quantity and are not included in the invoice, called inclusive bonus quantity; orders and free items both include the same materials, and the quantity units of free items and orders must be the same.

Free items can also take the form of additional free items, which are called exclusive bonus quantity;, in which additional items are delivered free of charge and are not usually included in the invoice; it can be an additional quantity ordered or other items.

Exclusive free goods appears in SD credentials as a separate, free item.

The configuration path related to free goods is shown below:

Free items in sales orders Free Goods in the Sales Order

Two kinds of type free items are processed in the same way in the sales order, the ordered materials are entered in the form of main item, and the free items appear automatically in the form of sub-item.

Item category determines how item is controlled in subsequent business processes (for example, delivery and pricing). Item categories TAN and TANN are used in a standard system, which automatically determines them by accessing the relevant conditional records, and then accesses the free item master record with a pricing date.

In earlier versions, we could also enter free items by manually entering data into the higher-level item and item category (TANN) fields. In this case, however, the system will not refer to the free item master record, and settings such as automatic reduction of main item quantity or delivery will be missing.

If the number of main item changes or the pricing date changes, the system re-reads the free goods master record in the sales order, then the system deletes and rebuilds the sub-items, and the number of hand actions is lost.

If the pricing of the sales order reruns, it will not affect free goods determination.

One-Line Inclusive Bonus Quantity

In the sales voucher, you can also automatically record an inclusive bonus quantities of item on one line. The advantages of doing so are:

The customer requirements are very obvious.

Inclusive bonus quantities can exist in structured products

The availability checks of the two item are no longer independent of each other

The shipping process can be improved

The hierarchical price of order quantity can be modeled more easily.

The number of vouchers decreased

The disadvantages of doing so are:

The quantity of free items is not obvious when the order is entered.

There is no way to distinguish the quantity of free goods in the statistics.

To activate one-line bonus quantities, we must set the flag:Inclusive/exclusive bonus quantity of the free item master record to 3:Inclusive bonus quantity without generating item. To implement this type free goods, a discount is calculated for free items at the time of pricing (condition type NRAB,requirement 059).

The quantity of free items is shown in order confirmation and invoice.

Free items-Master record Free Goods-Master Data

Free item condition type NA00 condition record (maintained by VBN1).

Conditional technology is applied to free goods, which is regarded as a supplement to the material pricing agreement.

We can maintain the master record of free items in the following ways:

Through different menu entrances

Go to Prices and Discounts/surcharges when maintaining master records

We can define master records for free items at any level, such as material, customer / material, price list type / currency / material or customer level / material.

We can restrict the master record of a certain layer in different ways: Validity period:condition is valid only during this period; Lowest quantity: the condition is valid when the quantity exceeds; Delivery control Calculation type Scales

You can process different master data for inclusive and exclusive bonus quantities with the same keywords at the same time; we just need to press a button to switch between the two discount types.

Free goods in delivery Free Goods in Deliveries

Free items are automatically copied to delivery, free items are sure not to happen in delivery; once part of the deliveries has been shipped, we can no longer change any quantity or date in the order, if these data are modified, the order item must be reject and re-entered.

In the master record of free items, we can adjust the delivery settings of free items. There are five options:

Blank-Free items item independent of main item processing

A-when the quantity of the order is partially delivered, free goods can be delivered

B-when the order quantity is fully delivered, free items can be delivered

C-can only be delivered with at least some of the ordered items

E-as part of the main item quantity

Screenshot of condition record (maintained by VBN1) of condition type NA00

Free items-calculation rules Free Goods-Calculation Rule

When we specify a calculation rule, we decide how the system determines the number of free items based on additional and document quantities.

The quantity of free items is calculated from the discounted quantity (not the minimum quantity): the Additional quantity is the quantity delivered free of charge; the document quantity is the quantity entered by the person who created the sales order.

The standard system provides three calculation rules:

Rule 1:prorated proportional allocation

Rule 2:unit-related

Rule 3:whole units

Calculation rules are stored in the system in the form of ABAP/4 code, and we can also define custom rules (t _ color _ code _ VOFM _ under menu entry,formulas).

Free items-Statistics and Control Free Goods-Statistics and Controlling

We can see the details of free goods in profit analysis and statistics; profits, sales discounts and the cost of free goods can be passed to CO-PA; in different ways (MIt = main item, SIt = sub-item)

Scenario 1 (SAP standard system)

MIt:Not influenced by free goods

SIt:Pricing de-actived,calculation price (VPRS) configured as costs

Scenario 2

MIt: Not influenced by free goods

SIt: Pricing for item category TANN active with setting B (in the costing procedure, condition type FG100 calculates a 100% discount through requirement 55 at level 819), discount reduces revenues, the transfer price is set as the costs.

Scenario 3

MIt: Accumulation of calculation price for lower-level item configured at main item level (in copying control Delivery-> Billing document), accumulated clearing price set as costs

SIt: Pricing deactivated

Item category TANN

Free items-conditional Technology Free Goods-Condition Technique

Conditional technology provides greater flexibility for the use of free goods. The system uses information about sales areas,document determination procedure (from the sales document type) and customer determination procedure (from the customer master) to determine the free goods determination procedure.

Procedure contains a list of condition type (for the free goods). Each condition type is assigned an access sequence (search strategy), and each access sequence consists of one or more access. Each access contains only one condition table, which indicates the search key that the system uses to search for a valid master record. If the search is successful, the system generates a sub-item,item category assigned an item category usage FREE for the free goods in the credential. Pricing for both items is controlled by Item category as usual.

We can activate the free item identification analysis in the sales voucher, and then the system displays the details of how to determine the free item.

In the standard SAP system, the pricing strategy for free goods is NA0001.

-end-

2020-2-24 was arranged in Suzhou.

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