Free Goods Determination - SAP SD

7/13/2020 Free Goods Determination - SAP SD
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LOGISTICS
This blog will give an
overview of all standard
functionalities provided
by SAP from Logistics
perspective which we
might have overlooked
during our regular
practise.
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Free Goods
Determinati
on - SAP SD
January 29, 2018
I
n many sectors of SHARE
industry it is
common to provide
products free of
charge, or not to Labels
charge the customer for
some of the goods sold Free goods
when a customer purchases
saplogisticsfunctional.blogspot.com/2018/01/free-goods-determination-sap-sd.html
d 1/12
certain goods. sd
Two types of free goods SD Topics
exist in SAP. They are
1. Inclusive free goods.
2. Exclusive free goods.
Inclusive free goods
The customer pays
only for a part of the goods
required. The rest of the
goods are for free. This is
called inclusive free goods
which mean that part of the
purchased quantity is
designated as free and not
billed. The unit of measure
for the inclusive free goods
is same as the purchased
quantity.
e.g.:- of the ten bottles of

wine ordered two are
designated as free goods. If
we order ten bottles of
wine then ten bottles of
wines are delivered to us as
ordered but we are billed
only for the eight bottles
and two bottles are given
as free. We have received
inclusive free goods.
Inclusive is of two kinds :
With Item
Generation
Without Item
Generation
Exclusive free goods

The customer pays for the
goods ordered and receives
some 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 do
not have to be the same as
the material ordered.
e.g.:- When four coffee
saplogisticsfunctional.blogspot.com/2018/01/free-goods-determination-sap-sd.html 2/12
machines are ordered, the

vendor supplies a packet of
coffee as free goods.
Therefore, if we order four
coffee machines, we
receive a free packet of
coffee.
Condition Technique
In SAP free goods are
determined using the
condition technique.
A condition table defines

the combination of fields
(the key) that identifies an
individual condition
record.
Path for condition table (T-

Code V/N2): Img -> Sales
And Distribution ->Basic
Functionà Free Goods -
>Condition Technique For
Free Goodsà Maintain
Condition Tables.
A condition record is how

the system stores the
specific condition data that
you enter in the system as
condition records. Path for
Condition Records (T-
Code VBN1): Display Img
->Sales and Distribution ->
Basic Functionà Free
Goods > Condition
Technique for Free
Goods > Free Goods
Determination.
The access
sequence determines the
sequence in which the
condition records for a
condition type are found
and read. It contains the
selected condition tables in
the required order. The
order in which the
condition tables are placed
in access sequence is
important. Generally it is
most specific to most
i
generic.
Path for access sequence:
Img -> Sales And
Distribution -> Basic
Function -> Free Goods ->
Condition Technique For
Free Goodsà Maintain
Access Sequence.
After creating the access
sequence, it is assigned to a
condition type.
A condition type is a
representation in the
system of some aspect of
your daily pricing
activities. The Standard
condition type used in Free
Goods Determination
is NA00.
The path for the condition
type: Img -> Sales And
Distribution -> Basic
Function -> Free Goods à
Free Goods -> Maintain
Condition Types.
Pricing in free goods
The pricing
procedure for the free
goods should contain the
condition type R100 which
is the free goods condition
type. This condition type in
the pricing procedure has
requirement as 55 and base
type 28.
Condition type NRAB is
included in the pricing
procedure to provide 100%
Discount for Inclusive free
goods without item
generation of having
condition base value 29
and requirement 59.
Activating free goods

determination
Activate free goods

determination the Pricing
procedure is assigned to
the combination of
the Sales Area,
the Customer Pricing
d
Procedure and
the Document Pricing
Procedure.
Path for activating free
goods determination:
Display Img ->Sales And
Distribution àBasic
Function -> Free Goods ->
Free Goods -> Activate
free goods
determination.
Maintaining free goods (
Master Data
Maintenance):
Path for maintaining the
free goods is (T-
Code VBN1)
SAP Easy Access Logistic
-> Sales and Distribution -
> Master Data ->
Conditions -> Free Goods -
> Create.
Enter the discount type as
NA00 and to give inclusive
free goods enter Inclusive
in Free Goods view.
Some of the important
fields on screen (free goods
inclusive).
Min qty: This is the
minimum Quantity which
should be ordered so that
the order is eligible for free
goods
From: From give the
quantity after which the
free goods will be given.
Are free goods: This
number shows the number
of quantity which should
be given as free goods to
the customer
e.g.: let us assume min qty
is maintained as 1000 and
from value is 100 and are
free goods value is 10.
If the customer places the
order for 1200, since the
ordered qty is more than
the min qty (1000) the
customer will get 10 qty as
free for every 100 qty. i.e.
the customer will receive
120 qty as free and is billed
l f
only for 1080 qty.
Calculation rule: This

Rule Tell that on what
basis the number of free
goods which are to be
given to the customer. The
Calculation Rule can be
any of the following
1. Proportional - In this
free goods quantity will be
allocated based on pro-rata
basis
2. Unit Reference – In this
free goods quantity will be
allocated based on the
Multiples
For Example – If business
offers buy 2 get 1 offer and
if the customer offers to
purchase 11 quantities then
5 goods will be offered as
free.
3. Whole Unit - If business
offers buy 2 get 1 offer and
if the customer offers to
purchase 11 quantities then
‘0’ goods will be offered as
free. Free goods will be
offered only if exact
multiple of free goods is
offered.
Free Goods Category:

This determines whether
free goods are inclusive or
Exclusive being used
during free goods
determination.
Free Goods Delivery

Control: This Controls the
delivery of free Goods.
This tells that whether the
free goods are delivered in
conjunction with the main
Item or are delivered alone.
If we want to the inclusive
free goods to be displayed
without new item
generation in the sales
order then select 3 in the
free goods category. In free
goods master data
maintenance, this new free
d t i d lt ith i
goods type is dealt with in
the same way as the
inclusive free goods
procedure except that in
sale order no subitem is
created
In the exclusive free goods
determination, only one
field differs from the
Inclusive free Goods
Determination and that
is Additional Material for
free Goods: It is the
material which is different
from the original material
and is given as a free good
E.g. A customer buys 100
books and gets a pencil
box free.
Free goods have the

following limitations:
1. Free goods can only

be supported on a 1:1 ratio.
This means that an order
item can lead to a free
goods item. Agreements in
the following form are not
supported: 'With material
1, material 2 and material 3
are free of charge' or 'If
material 1 and material 2
are ordered at the same
time, then material 3 is free
of charge'.
2. Free goods are not
supported in combinations
with material structures
(for example, product
selection, BOM, variants
with BOM explosion).
3. Free goods are only
supported for sales orders
with document category C
(for example, not
quotations).
4. Free goods are not
supported for deliveries
without reference to a sales
order.
5. Free goods cannot be
used in make-to-order
d i hi d
production, third-party
order processing and
scheduling agreements.
6. If you defined a free
goods for variants in a
generic article (only SAP
Retail), you can only
process the variants in the
purchase order and goods
receipt individually (as
single articles). In other
words, you cannot process
them using the generic
article matrix
LABELS:
FREE GOODS, SD,
SD TOPICS
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Comments
narayana
· 1 August 2018
at 03:53
It was so nice
article.I was
really satisi ed
by seeing this
article Sap
Online Access
REPLY
Anonymous
· 17 February
2019 at 23:38
Thanks for
sharing this
post about Free
Goods
Determination
in SAP SD as i
got to learn
got to learn
new things
from your Blog
as its gives best
info about
detailed
explanation
about Free
Goods
Determination
in SAP Sales
and
Distribution.Vis
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REPLY
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7/13/2020 Free Goods Determination - SAP SD

SAP SUBSCRIBE SEARCH

January 29, 2018

e.g.:- of the ten bottles of

Inclusive is of two kinds :

Exclusive free goods

machines are ordered, the

A condition table defines

Path for condition table (T-

A condition record is how

Activating free goods

Activate free goods

Calculation rule: This

Free Goods Category:

Free Goods Delivery

Free goods have the

1. Free goods can only

Enter your com

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