In many industry sectors it is common in the sales of certain goods for other goods to be supplied in addition for free, or, indeed, to supply the customer with a portion of the goods for free.
The following kinds of free goods exist:
The customer only pays for some of the goods requested. The rest of the goods are free of charge. The inclusive bonus quantity is also called inclusive free goods and means that a proportion of the order quantity is granted as free goods, i.e. is not paid for.
The materials delivered as free goods also match the ordered material in terms of the unit of measure.
Two out of ten bottles of sparkling wine are free goods. Therefore, if you order 10 bottles, 10 will be delivered and you will not be charged for 2 of them. So in this case, you have ordered an inclusive bonus quantity.
The customer pays for the goods ordered and is given extra goods free of charge. The exclusive bonus quantity is also called exclusive free goods and means that in addition to the purchase order, a certain quantity of materials are guaranteed as free goods. In other words, a larger quantity is delivered than is ordered, whereby no charge is made for the additional quantity delivered.
The materials delivered as free goods do not necessarily have to be the same as the materials orders.
If the customer buys 4 coffee machines, the vendor provides a packet of coffee as free goods. So if you order 4 coffee machines, a packet of coffee is delivered too, but you are not charged for it.
Scope of Functions
You create a free goods agreement like a condition. For this, you can create conditions when a free goods is guaranteed on any levels, for example, at customer/material level or customer hierarchy/material level. In the standard system, you use customer/material level. The free goods agreement has a validity period. In the free goods agreement, you can create different rules to determine the free goods quantity. You can define a minimum quantity for the sold material. Once this minimum quantity is reached, the free goods are guaranteed. The free goods quantity can be defined as a quantity proportional to the sold quantity. Another rule defines the free goods quantity for each whole-number unit of the sold quantity. For example, the free goods here are only guaranteed for full pallets and not for pallets that have already been opened.
Free goods can be mapped in the sales order in sales from the warehouse. When creating a sales order, the free goods items are automatically created in accordance with the agreement. The free goods are displayed as a separate item. The free goods item is a subitem of the original item. The free goods items are delivery-relevant and are copied to the delivery. The free goods item can be copied to the billing document. This makes it possible to prove the free goods are items that are free of charge on the invoice.
Pricing can be carried out for a free goods item in the sales order and in the billing document. The item becomes an item that is free of charge once the pricing is finished due to the automatic 100 percent markdown. This enables the prices and items to be displayed very precisely in the statistics and in the profitability analysis. The free goods cannot be displayed with the production costs, but they can be displayed as a special form of sales deduction.
Free goods can only be supported on a 1:1 ratio. This means that an order item can lead to a free goods item. Agreements in the following form are not supported: ‘With material 1, material 2 and material 3 are free of charge‘ or ‘If material 1 and material 2 are ordered at the same time, then material 3 is free of charge‘.
Free goods are not supported in combinations with material structures (for example, product selection, BOM, variants with BOM explosion).
Free goods are only supported for sales orders with document category C (for example, not quotations).
Free goods are not supported for deliveries without reference to a sales order.
Free goods cannot be used in make-to-order production, third-party order processing and scheduling agreements.
If you defined a free goods for variants in a generic article (only SAP Retail), you can only process the variants in the purchase order and goods receipt individually (as single articles). In other words, you cannot process them using the generic article matrix.