Free Goods 

Use

This function allows you to offer your customers a product free of charge in the form of free goods when a certain quantity of products is ordered. Free goods is a kind of quantity discount, and is granted in the form of a goods delivery that is free of charge when a certain quantity is purchased. You can use it to encourage your customers to order greater quantities.

The following types of free goods exist:

·        Inclusive bonus quantity: The customer only pays for part of the goods he or she has ordered. The rest of the products are provided at no extra cost. For example, a customer orders ten notebooks but only has to pay for nine.

·        Exclusive bonus quantity: The customer pays for the goods he has ordered, and also receives additional products for free. The materials delivered as free goods do not have to be the same as the goods ordered. For example, a customer orders ten notebooks, and additionally receives a handheld free of charge.

Prerequisites

You have defined and assigned the free goods determination procedure. You can find more information in the SAP Implementation Guide (IMG) for Customer Relationship Management under Basic Functions  ® Free Goods ® Set Up Free Goods.

In order for free goods to be determined automatically in the sales order, free goods master data must be maintained.

You can copy the master data and Customizing for free goods from SAP ECC (see Data Exchange for Conditions).

Features

SAP CRM provides you with the same functions as SAP ECC for determining free goods. If you use SAP CRM without SAP ECC, then Enterprise Sales, Mobile Sales, and CRM E-Commerce support both determination of one condition record and determination of several condition records for free goods.

If you grant your customer free goods, you can use automatic determination of free goods. A free goods item is then created automatically in the sales order as an item that is free of charge. If the inclusive bonus quantity is used, two items are created; a main item and an item for the free goods with the corresponding free goods quantity. The main item is automatically reduced by the free goods quantity. By comparison, the quantity of the main item remains when the exclusive bonus quantity is used.

You can change this system response by choosing a particular free goods type (inclusive bonus quantity without item generation) in the free goods master data so that when the inclusive bonus quantity is used, another item is not created for free goods. Instead, a discount is calculated for it in pricing for the main item. You can find more information on the inclusive bonus quantity without item generation in the SAP Library for SAP ECC under Logistics ® Sales and Distribution (SD) ® Basic Functions and Master Data in SD Processing (SD-BF) ® Basic Functions in SD ® Free Goods ® Inclusive Bonus Quantity Without Item Generation.

Condition technique is used for free goods as it is used in pricing. You create a free goods agreement as a condition. Pricing for a free goods item can be executed in the sales order and in the billing document.

For more information on condition technique, see Pricing Flow.

You can create the condition records for free goods in the SAP Easy Access Menu for SAP CRM under Master Data ® Prices and Conditions ® Maintain Conditions.

There is no minimum quantity in the free goods master data in SAP CRM, which means that you can also issue free goods without a minimum order quantity. If you copy a free goods record from SAP ECC to SAP CRM, a minimum quantity is displayed as a scale quantity.

Usage of Scales

You can use scales to define that certain free goods are granted when a particular quantity of products is ordered. For example, you can calculate one notebook as free goods if ten are ordered, two free notebooks if twenty are ordered, and so on (see following table).

Scale	Free Goods Quantity
Quantity: 10	1 Piece
Quantity: 20	2 Pieces
Quantity: 30	3 Pieces
Quantity: 40	4 Pieces

Usage of Calculation Types

You can use calculation types to define that certain free goods are granted when a particular quantity of products is ordered. If, however, a customer orders a lesser or greater quantity than the defined quantity, you can determine which free goods should be granted by selecting from the types provided by default.

The following types, which you can define in the master data, are provided by default:

·        Type 1: Proportionate, that is, percentage calculation of free goods

·        Type 2: Unit-related

·        Type 3: Only for whole units

You grant 10 notebooks as free goods for an order of 100 notebooks. A customer orders 150 notebooks.

§         With type 1 the customer would receive 15 notebooks free of charge

§         With type 2 the customer would only receive 10 notebooks free of charge

§         With type 3 the customer would not receive free goods

 

You can find more information on the free goods in the SAP Library for SAP ECC under Logistics ® Sales and Distribution (SD) ® Basic Functions and Master Data in SD Processing (SD-BF) ® Basic Functions in SD ® Free Goods.

Special Features for CRM E-Commerce

You can offer free goods in your B2B and B2C Web shops in order to encourage your customers to order greater quantities when they order a certain quantity of a product. You can display free goods in the Web shop when you create and change orders.

It is possible to use both inclusive and exclusive bonus quantity free goods types in the Web shop. You can configure free goods in your Web shop using scales or a particular calculation types.

If you determine free goods in the Web shop using scales, and the customer enters too small an order quantity to receive free goods, the system informs the customer in a message how many products he or she has to buy in order to be granted free goods.

The customer does not receive this information when he or she enters too small an order quantity if you determine free goods in the Web shop using calculation types.