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Free goods in SAP SD

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 goods1. 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.

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