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Function documentationFree Goods in Volumes/Trade Spends Planning

 

You can use volumes/trade spends planning to plan free goods to be given away with a trade promotion. For example, if an account buys 100 pieces of a particular product, the account gets one free. Free goods can be product-dependent or product-independent.

Prerequisites

  • You have created a trade promotion and assigned to it a planning profile group that contains at least one planning profile of type Free Goods or Product Independent Free Goods. You define planning profile groups in Customizing for Customer Relationship Management under Start of the navigation path Trade Promotion Management Next navigation step Key Figure Planning Next navigation step Define Planning Profile Groups End of the navigation path.

  • In the Products assignment block, you have assigned one or more free goods to products. If your planning profile is of type Product Independent Free Goods, you have entered one free goods product that is applicable to all promoted products.

  • In the Products assignment block, you have specified how the free goods are accounted for. For example, if you are giving away one free product for every 100, this product can be included in the 100 or it can be extra. This is used later in condition generation since this information is needed for billing and invoicing purposes.

Features

Once you have made these settings, the following planning columns appear in volumes/trade spends planning:

  • Free goods ratio

  • Free goods value

  • List price

The free goods and unit of measure are taken by default from the settings made in the Products assignment block, but you can change them there.

The free goods ratio is then used to calculate the number of free goods that can be given away in a trade promotion. For example, you might want to give away a free gift for every 10 products that are sold. This key figure contains the number of free goods that are required for the amount of stock that you are planning to sell in your trade promotion.

The free goods value works the other way round, depending on the quantity available. In this case, you may only have a limited amount of free goods to give away. Therefore, you want to calculate how many can be given away for the amount of stock that you have and what the best ratio will be.