Free Goods with Pricing (SAP Library

Free Goods with Pricing

Use

Use this function if you supply your customers with free goods and you want the system to make accounting postings for the free goods.

Activities

Once you have set up the pricing procedure in Customizing and created a condition type for the free goods, the system determines the free goods automatically when you create a sales order and makes the appropriate accounting documents when you create a billing document.

Customizing

Activate pricing for free goods as follows:

In Customizing for Sales and Distribution (SD), choose Basic Functions ® Free Goods ® Control Free Goods Pricing ® Control Pricing for Free Goods Item Category.

Find the free goods item category (in the standard system, TANN).

In the Pricing field, enter B (Pricing for free goods (100% discount)).

In Customizing for SD, choose Basic Functions ® Free Goods ® Control Free Goods Pricing ® Maintain Pricing Procedure for Pricing.

Add the condition type for the 100% discount (in the standard system, condition type R100) to the pricing procedure that you want:

Step: Enter the condition type at the point in the pricing procedure where the discount is to be applied.

CTyp (Condition Type): Enter R100 (or a condition type of your own, if you have created one)

Reqt (Requirement): Enter 55

AltCBV (Alternative Formula for Condition Base Value): Enter 28

ActKy (Account Key): Enter an account key for sales deductions (in the standard system, ERS).

Master Data

Create a condition record for your free goods using the condition type NA00 (see Maintaining Free Goods).

Day-to-Day Activities

Create the sales order as usual. The system automatically proposes any free goods that the customer is entitled to.

To check how the free goods are priced, from the sales order overview screen, position the cursor on the free goods item and choose .
The pricing procedure displays the price of the free goods in the price condition type (in the standard system, PR00). It then allows a 100% reduction of the price using the free goods condition type.

When you create a billing document, the system creates an invoice for the goods that the customer has to pay for, and expenses the free goods to your own company (see the following example).

Example

Your company sells specialist bricks. The bricks are priced as follows:

One pallet of bricks costs THB 600 plus 7% value-added tax (VAT) at THB 42.
You currently have a special offer, buy 20 pallets and get three free.

A customer purchases 100 pallets. You invoice him for THB 64,200, and give him an additional 15 pallets free of charge, but at a cost of THB 9,000 to yourself. You do not have to pay any tax.

When you create the billing document, the system makes two billing documents and two accounting documents:

This graphic is explained in the accompanying text