FREE GOODS HANDLING IN SAP MM

FREE GOODS

 Free Goods in SAP is giving certain material/quantity as free of charge

based on Order quantity. Depend on some condition
BUSINESS SCENARIO 01 (A)
 Sometime vendor directly send the material to us to use their product
which is free of cost for marketing
 We directly entered as a good receipt free of good (good receipt 511)
 No accounting is generated

BUSINESS SCENARIO 02 (B)

 Sometime we need the sample of product from vendor to order the large
quantity of material then we have to Send purchase order to vendor for
ordering sample product
 The sample product is sent free to check properties and quality of
material from vendor (good receipt 101)
 No accounting document generated

CHAITANYABHANGALE@GMAIL.COM
BUSINESS SCENARIO 01 WORKFLOW

We received free goods from vendor for testing

STEP 1 : CREATE MATERIAL

FOR FREE GOODS

MATERIAL SHOULD
BE MOVING AVG
PRICE

STEP 2 : CREATE VENDOR

Vendor 0000098007 has been created for company code 1000 purchasing organization P973

NEW VEDOR
CREATED

CHAITANYABHANGALE@GMAIL.COM
STEP 3 : MAKE GOOD RECEIPT (511 MOVEMENT TYPE)

MOVEMENT TYPE
SELECTED

STEP 4 : CHECK MATERIAL DOCUMENT

ACCOUNTING
DOCUMENT NOT
GENERATED IN
MATERIAL
DOCUMENT

ACCOUNTING DOCUMENT IS NOT GENERATED

INVOICE CAN NOT BE DONE

CHAITANYABHANGALE@GMAIL.COM
BUSINESS SCENARIO 02 WORKFLOW

We have to order sample material from vendor

STEP 1 CREATE MATERIAL

MATERIAL SHOULD
BE MOVING AVG
PRICE
BECAUSE IN
MOVING AVG
PRICE IS
VALUATED BASED
ON PO

STEP 2 CREATE VENDOR

VENDOR CREATED

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STEP 3 CREATE PURCHASE ORDER

TICK THE FREE INDICATOR IN ITEM TAB

FREE TICK ON

NET PRICE EMPTY

BY SYSTEM

CONDITION TAB IS
REMOVED

AFTER TICK ON FREE INDICATOR

CONDITION TAB IS REMOVED FROM ITEM OVERVIEW
NET PRICE FIELD BECOME BLANK AFTER FREE TICK ON

CHAITANYABHANGALE@GMAIL.COM
STEP 4 GOOD RECEIPT

GOOD RECEIPT IS
DONE MOVEMENT
TYPE 101

ACCOUNTING
DOCUMENT NOT
GENERATED

MATERIAL DOCUMENT IS CREATED

BUT ACCOUNTING DOCUMENT IS NOT GENERATED A
MATERIAL IS FREE GOODS

INVOICE IS CAN NOT BE DONE

CHAITANYABHANGALE@GMAIL.COM