Use this function if you supply your customers with free goods and you do not want to make any accounting postings for the free goods.

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 document when you create a billing document.

Deactivate pricing for free goods as follows:

1. In Customizing for Sales and Distribution (SD), choose Basic Functions ® Free Goods ® Control Free Goods Pricing ® Control Pricing for Free Goods Category.
2. Find the free goods item category (in the standard system, TANN).
3. Make sure that the Pricing field for the free goods item category is blank.

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 as zero (in the standard system, PR00).

When you create a billing document, the system creates an invoice (and an accounting document) for the goods that the customer has to pay for. It does not make any accounting postings for the free goods (see the following 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. The system does not make any accounting postings are made for the 15 free pallets.

When you create the billing document, the system creates the following accounting document:

As you can see, this document only covers the goods paid for by the customer, not the free goods.