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SAP Purchase order – Default Free of Charge Indicator

Introduction: Business expects free of charge indicator to be set by default at the time of purchase order creation under certain circumstances. This document explains various methods of auto default FOC indicator on the purchase order creation screen.

The following section explains  different way of auto default FOC indicator during PO creation.

1.) Customization

Not set invoice receipt indicator for the relevant account assignment, in case FOC indicator to be set automatically.

2.) Master Data

Use info record and create a new condition type NR00 to auto default FOC indicator for the additional/bonus material quantity. In this case, only additional/bonus quantity defined in the info record to be considered for free charge.

The link provided in the reference section leads to author’s another article which explains configuration and master data prerequisite in order to use NR00 condition type.

3.) Source of Purchasing

Use contract for the relevant free goods suppliers and not set invoice receipt indicator at each line item level. Net price is equivalent to zero which is prerequisite for this set up.

4.) Business Add-in (BADI)

Implement Purchase order creation business add-in such as “ME_PROCESS_PO_CUST” and select method PROCESS_ITEM for free of charge. It is based on business discretion to implement this BADI or not.

5.) Alternate to Free of Charge:

Create purchase order with penny price ($0.01) in case free of charge items attract delivery cost. By using penny price for items, actual cost of delivery can be captured.

Conclusion: This document explained different available settings to default FOC indicator during purchase order creation. Message or comment in case of any queries related to this document

Reference:

https://archive.sap.com/documents/docs/DOC-5693

Mohamed Hasan Rifaie M, Senior Consultant at Larsen & Toubro Infotech (LTI) with overall 18 years experience in SAP P2P, WM, SCM, SRM, Ariba Integration and exposure in to Utilities, Media, Food/Chemical, Pharma industries as well business experience in Manufacturing, HVAC and Process industries.

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