Hi Team,

Sharing the Steps for Free Goods Configuration to have a Step by steps documentation to complete the Free Goods activity in Sales and Distribution module.

1.0 BASICS

FREE GOODS

  1. S.No

Item

Description

Remarks

1

Free Goods

Free Goods in SAP is giving certain material/quantity as free of charge based on Order quantity.

This may depend on some conditions

2

Types of Free Goods

Free Goods are of two types in SAP, Inclusive Free Goods and Exclusive Free Goods

3

Inclusive Free Goods

If the Free Goods quantity is a part of Order quantity, it is said to be Inclusive Free Goods.

Also called as Inclusive Bonus Quantity.

Example: Buy 10 get 1 free is the Policy.   Customer is charged for 9 qty. only and one is given free.

The total quantity customer gets is 10.

4

Exclusive Free Goods

If the Free Goods quantity is in addition to Order quantity, it is said to be Exclusive Free Goods.

Also called as Exclusive Bonus Quantity.

Example: Buy 10 get 1 free is the Policy.   Customer is charged for 10 qty. and one is given extra.

The total quantity customer gets is 11.

For Exclusive Free Goods, the material being given free could be different from Ordered material.

For Material X, Material Y may be given free.

5

Conditions

Free goods agreement is maintained like a condition. These agreements are maintained as Master Data which is copied into Sales Documents.

Transaction Code for Master Data : VBN1

6

Condition Technique

Condition Technique could be used to determine the Free Goods based on the appropriate levels. For example, at customer/material level or customer hierarchy/material level etc..

In the standard system, conditions  may be maintained at customer/material level.

  1. MASTER DATA MAINTENANCE

MASTER DATA FOR FREE GOODS

  1. S.No

Data Entry

Description

Examples/ Remarks

01

Path

  1. Logistics ® SD ® Master Data ® Conditions ® Free Goods ® Create

02

T-Code

VBN1

03

Initial Screen

Enter Condition Type

Ex : Discount. Type – NA00

04

Overview Screen

Select Inclusive or Exclusive as desired by clicking on the Button on Application Tool Bar.

Specify a validity period for the free goods agreement

Specify a minimum quantity that Customer may Order for Free Goods eligibility

Ex : Min. Order Qty. 20.

Specify Quantity and Unit of measure for which free goods will be given.

Ex : For every 5 PCs free some qty. is given

Specify the quantity of Goods being given as free along with Unit of measure

Ex : 1 PC is free

Maintain Calculation Rule

By default 1 is maintained.

For Exclusive Free Goods additional Material, different from Ordered Material, being given free can also be maintained

Not applicable for Inclusive Free Goods

If required maintain other information and click on save button

  1. 3.0 FIELDS IN THE MASTER DATA SCREEN

FIELDS IN THE MASTER DATA OVERVIEW SCREEN

Field description

Contents

Material

Material, for which free goods is to be granted

Minimum quantity

Minimum quantity for which free goods can be granted

From

Quantity of sales material

FGQ

Quantity unit of Sales material

Free Goods

Quantity of free goods with reference to the quantity and quantity unit of the sales material

AQU

Quantity unit of the free goods additional quantity

Rule

Calculation rule

D

Delivery Control

Additional Material

Additional material (only available for entry in exclusive free goods)

  1. 4.0 CALCULATION RULE

CALCULATION RULE FOR FREE GOODS

  1. S.No

Item

Description

Examples/ Remarks

01

Calculation Rule

The calculation rule defines the manner in which the free goods amount is calculated from the free goods quantity, additional quantity and the document quantity.

02

Standard Calculation Rules

Calculation Rules

Description

Rule 1

Proportional [pro-rata]

Rule 2

Unit Reference

Rule 3

Whole Unit

03

Enhancements / Routines

We can enhance the rules for determining the free goods quantity by modifying existing routines or adding new routines

Transaction : VOFM

04

Example for Calculation Rule

10 pieces of a material are granted as exclusive free goods for an order of 100 pieces. A customer orders 150 pieces. Depending on the rule used, the customer receives the following free goods quantity:

Calculation Rules

Description

Free Goods Quantity

Rule 1

Proportional [pro-rata]

15

Rule 2

Unit Reference

10

Rule 3

Whole Unit

10

  1. 5.0 LIMITATIONS OF FREE GOODS

LIMITATIONS

  1. S.No

Item

Description

Remarks

1

1:1 Ratio [Exclusive]

Free goods can only be supported on a 1:1 ratio. For an order item another different Item may be given free.

Not Possible :

For X and Y, Z is free etc.

2

Material Structures

Free goods are not supported in combinations with material structures.

Ex : Product selection, BOM, variants with BOM explosion

3

Document Category

Free goods are only supported for sales orders with document category C.

Ex : Not supported with Credit Memo Requests etc.

4

Deliveries

Free goods are not supported for deliveries without reference to a sales order.

Order Reference Mandatory

5

Special Business Processes

Free goods cannot be used for certain special business processes.

Ex : MTO, TPO, Scheduling Agreements etc.

  1. 6.0 FREE GOODS DETERMINATION

6.1 CONDITION TABLE

  1. S.No

Item

Description

Remarks

1

Definition

A Condition Table is a combination of fields which form a key for a Condition Record.

2

Path

  1. IMG ® SD ® Basic Functions ® Free Goods ® Condition Technique for Free Goods ®  Maintain Condition Tables

3

T-Code

V/N2

5

Entry Screen

In the entry screen, enter the desired Table number otherwise system generates a number automatically

5

Table Number

Users can create table from 501 to 999.

6

Standard Table

Standard Condition Table used is Table 10 which has fields Sales Organization, Distribution Channel, Customer and Material

Assigned to Access Sequence NA00.

6

Process

Select the fields from the list of allowed fields [Field Catalogue] by double clicking the required fields which are reflected on the selected fields and click on Generate Icon on Application Tool Bar.

Note : The tables are created from the List of allowed fields.

6.2 ACCESS SEQUENCE

  1. S.No

Item

Description

Remarks

1

Definition

An Access Sequence is a search strategy which SAP system uses to search for condition records valid for a condition type.

The access sequence consists of one or more accesses

It determines the sequence in which the system searches for data.

2

Path

  1. IMG ® SD ® Basic Functions ® Free Goods ® Condition Technique for Free Goods ® Maintain Access Sequence

3

Characters

Access Sequence is a 4 digit Alpha Numeric key

4

New Access Sequence

In the Application Tool bar select New Entries and define the desired Access Sequence.

A text can also be added.

5

Accesses

Select the new Access Sequence and double click on Accesses. System may not display any Accesses here.

An Access is like serial number which is to be numbered with some gaps.

Again click on new Entries on Application Tool Bar.

Now we can add the desired condition tables against each access.

6

Fields

Select the first Access double click on fields. System may display all the fields in the condition table maintained for that Access. Similarly each access is selected and fields are initialized.

7

Standard Access Sequence

Standard Access Sequence maintained is NA00.

It has Table 10.

8

Tables arrangement

Tables in an Access Sequence are to be arranged from the most specific to the most general table.

6.3 DISCOUNT TYPE [CONDITION TYPE]

  1. S.No

Item

Description

Remarks

1

Definition

Discount Types in Free Goods similar to Condition Types in Pricing.

2

Path

  1. IMG ® SD ® Basic Functions ® Free Goods ® Condition Technique for Free Goods ®   Maintain Condition Type.

3

Characters

Condition Type is a 4 digit Alpha Numeric key

4

New Condition Type

Select a Condition Type which is similar to the desired condition Type and click on New Entries in the Application Tool bar.

A text can also be added.

Define a new Condition Type with 4 characters and assign the new Access Sequence to it.

5

Standard Condition Type

Standard Condition Type maintained is NA00.

It has Access Sequence NA00.

6.4 PRICING PROCEDURE [FREE GOODS PROCEDURE]

  1. S.No

Item

Description

Remarks

1

Definition

Pricing procedure is the collection of desired Condition Types along with other control features.

Free Goods Procedure is also called as Pricing Procedure

2

Path

  1. IMG ® SD ® Basic Functions ® Free Goods ® Condition Technique for Free Goods Maintain Pricing Procedures

3

Characters

Pricing Procedure is a 6 digit Alpha Numeric key

4

New Pricing Procedure

Select a standard Pricing Procedure which is similar to the desired Pricing Procedure and click on Copy As Icon in the Application Tool bar.

A text can also be added.

Define a new Pricing Procedure with 6 characters and assign the new Condition Types and also retain the required standard condition Types.

5

Standard Free Goods Procedure

SAP Standard Free Goods Procedure is NA0001

It has Condition Type NA00.

6.5 CUSTOMER PRICING PROCEDURE

  1. S.No

Item

Description

Remarks

1

Definition

Customer Pricing procedure is a single digit alpha-numeric key assigned to customer master record and is used in Pricing Procedure determination

2

Path

  1. IMG ® SD ® Basic Functions ® Pricing ® Pricing Control ® Define and Assign Pricing Procedures  ®   Define Customer Pricing Procedure

3

T-Code

OVKP

4

Characters

Single digit alpha-numeric key

Ex : 1 – Standard

5

New Customer Pricing Procedure

Select a standard Customer Pricing Procedure and click on Copy As Icon in the Application Tool bar.

A text can also be added.

Enter any single digit number or a character and give a meaningful name and save.

6

CMR

This Customer Pricing Procedure is to be assigned to the required customer master records.

Sales view of Sales Area in CMR.

6.6 DOCUMENT PRICING PROCEDURE

  1. S.No

Item

Description

Remarks

1

Definition

Document Pricing procedure is a single digit alpha-numeric key assigned to Document Type and is used in Pricing Procedure determination

2

Path

  1. IMG ® SD ® Basic Functions ® Pricing ® Pricing Control ® Define and Assign Pricing Procedures  ®   Define Document Pricing Procedure

3

T-Code

OVKI

4

Characters

Single digit alpha-numeric key

Ex : A – Standard

5

New Document Pricing Procedure

Select a standard Document Pricing Procedure and click on Copy As Icon in the Application Tool bar.

A text can also be added.

Enter any single digit number or a character and give a meaningful name and save.

6.7 ASSIGNING DOCUMENT PRICING PROCEDURES

  1. S.No

Item

Description

Remarks

1

Definition

Document Pricing procedure is to be assigned to required sales and billing document types.

Ex : A – OR

2

Path

  1. IMG ® SD ® Basic Functions ® Pricing ® Pricing Control ® Define and Assign Pricing Procedures  ®   Assign Document Pricing Procedure

3

T-Code

OVKJ

OVTP for Billing

6.8 PRICING PROCEDURE [FREE GOODS PROCEDURE] DETERMINATION

  1. S.No

Item

Description

Remarks

1

Definition

Pricing procedure is determined based on Sales Area, Customer Pricing Procedure and Document Pricing Procedure.

2

Path

  1. IMG ® SD ® Basic Functions ® Pricing ® Pricing Control ® Define and Assign Pricing Procedures  ®   Define Pricing Procedure Determination

3

New Pricing Procedure Determination

Select a standard combination of sales area, Customer Pricing Procedure and Document Pricing Procedure and click on Copy As Icon in the Application Tool bar.

.

This is similar to General Pricing Procedure Determination.

Enter the desired values and the new Pricing Procedure.

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