Complimentary Goods (SAP Library

Complimentary Goods

Use

If you transfer the ownership of any goods to a customer, without receiving payment of any kind, you must:

Pay the output tax yourself
Prepare a document of tax liability within three working days of the transaction.

The document must show the quantity and value of goods for the purposes of calculating VAT.

Features

You can choose either of two ways of handling complimentary goods. The only difference between the two ways is the accounting postings that are made:

In scenario 1, when you withdraw the complimentary goods from the warehouse to send to the customer, the system debits a clearing account. When you prepare a billing document, the system clears that account and debits an expense account.

In scenario 2, the system debits the expense account immediately you withdraw the goods.

Which scenario you use thus depends on your own business practice.