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Author's profile photo Former Member

Discount in Kind

Discount in Kind – Discount in Form of Bonus Goods.

This function allows to get a product free of charge in the form of free goods when a certain quantity of product is ordered.

Discount in kind can be in the form of free or bonus goods. Free goods are of 2 types

Inclusive bonus quantity

Exclusive bonus quantity

Inclusive Bonus Quantity:

Free goods that are part of order quantity but not included in the invoice.

The quantity units of the free goods delivered and the ordered goods must be

    the same

The ordered goods and the free goods both involve the same material.


We order 10 chairs and vendor delivers all the 10pcs and declares that 1 chair among them is free and invoices only for 9pcs.

In this free goods are inclusive in the total quantity ordered.

Exclusive bonus Quantity:

Here in addition to the purchase order quantity, a certain quantity of materials are guaranteed as free goods.

A larger quantity is delivered than the ordered, whereby no charge is made for the additional quantity delivered.

The materials delivered as free goods do not necessarily have to be the same as the materials orders.


When five tables are ordered, the vendor supplies one chair as free goods.

Therefore, if we order five tables, we receive a chair as free goods.

Calculation of Free goods:

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Mandatory Settings:

Configuration Steps:

Define condition type NR00 (Discount in Kind).

Assign it in the calculation schema of the corresponding pricing procedure.

Screen Shot 2016-08-16 at 17.54.06.png

Material Master Setup:

In material master, under purchasing data, select the “Material qualifies for discount in kind” indicator

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Vendor Master Setup:

In vendor master, under purchasing data, mark the Grant discount in kind field.

Screen Shot 2016-08-16 at 17.55.57.png

Create Condition Record for Free Goods Determination:

Create condition record for free goods for the combination of vendor, material, plant and the purchase organization with the corresponding validity period. Use t code, “MBN1” for the creation of condition record.

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Create Info Record for Free Goods:

Create Info record for the vendor and material combination using T-code ME11

     Screen Shot 2016-08-16 at 17.57.17.png

Create PO ME21N, Enter the Details see the result as per the free goods scheme Qty becomes free automatically in second line item.


Screen Shot 2016-08-16 at 17.58.18.png

This is the procedure in which one can add discounts / free goods automatically in PO.

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      Author's profile photo jalil mousavi
      jalil mousavi

      Hi ,

      very good.

      please  go on your scenario's process   to invoice verification and integration with FI moule. i need to know . 🙂


      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      Hi Former Member

      It is as same as SD pricing. Thanks for sharing.

      Keep it up !

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member

      Hi Former Member

      Can you please explain by taking a scenario as example from defining Condition type to Invoicing.

      Author's profile photo Martin Schlegel
      Martin Schlegel

      Thank you for sharing!

      Author's profile photo Arpita Majumdar
      Arpita Majumdar

      Nice doc & very helpful