Free goods 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 coke, 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 beans as free goods. Therefore, if you order four coffee machines, you receive a free packet of coffee beans which is different from the ordered item. Constraints Free goods are 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. You can define different rules for determining the free goods quantity Proportional (rule 1) Related to number of units (rule 2) Only for whole units (rule 3)
. Calculation rule free goods quantity Rule 1 15 pieces Rule 2 10 pieces Rule 3 0 pieces You can enhance the rules for determining the free goods quantity with your own routines. the customer receives the following free goods quantity. A customer orders 150 pieces. Depending on the rule used.You grant 10 pieces of a material as exclusive free goods for an order of 100 pieces.