Thursday, September 11, 2008

SD Free Goods in Sales and Distribution Processing in SAP SD

Use

If you grant free goods to a customer, you can implement automatic free goods determination. The system automatically create a free goods item in the sales order. The item is free of charge. For inclusive free goods, the main item is automatically reduced by the free goods quantity. For exclusive free goods, the quantity of the main item remains the same.


You grant 2 pieces of a material as free goods when the customer orders 100 pieces. For inclusive free goods, the two pieces are deducted from the quantity of the sales material and created as a separate free of charge item. For exclusive free goods, the customer receives two additional pieces as an additional free of charge item (see figure below).

Prerequisites

Customizing

Free goods determination requires Customizing settings in SD basic functions.

Master Data

Free goods determination requires that the free goods be maintained in the master data.

Features

Free goods determination in the customer order

The free goods records have a validity period. They are accessed using the pricing date.

The free goods item is determined automatically by the system, according to the data in the free goods record. In the standard system, item category TANN is set for free goods items.


You can also enter free goods manually by entering item category TANN as the item category in double line entry. In this case, however, the system will not access the master data and the control parameters contained therein.

The system informs you if an order does not reach the minimum quantity specified for free goods. In Customizing, you can make the system disregard this message or even set it as an error.(Select: Sales and Distribution -Sales - Sales documents - Define variable messages. This case concerns message V4 160).


You can view a free goods analysis carried out by the system. In the order, select: Environment - Analysis - Free goods - On. The system displays the key it uses to access the free goods master data. It also informs you if free goods is not possible (e.g. for product selection).

You can change the free goods quantity. The system issues an error message if the free goods quantity exceeds the quantity of the material ordered.

Other than the quantity, no other data is available for entry in the free goods item.


Subsequent changes to quantities or dates can be made to the main item. This means that free goods determination is carried out again. This means that manual changes to the free goods quantity are lost.

Free goods in the delivery

Free goods in the delivery

Free goods in the billing document

The free goods items are displayed as items free of charge.

Integration

Free goods in Controlling (CO-PA)

You have different options for transferring costs in Controlling (CO-PA). This is best explained using the following three examples:

1. Example 1:

Free goods is granted to promote the free material.

The free goods material is treated independently of the material ordered.

The cost value is taken as the cost of the free goods material.

Billing document in SD

Material

Quantity

Price

Discount

Cost price

Main item

Free Goods

10 pieces

1 pieces

100 USD


40 USD

5 USD






Individual items in CO-PA

Material

Quantity

Sales revenue

Sales deduction

Costs

Main item

Free Goods

10 pieces

1 pieces

100 USD


40 USD

5 USD

This example corresponds with the standard version.

Pricing is not activated for the free goods item category (TANN).

2. Example 2:

Free goods is granted to promote the free material.

The free goods material is treated independently of the material ordered.

The cost value and the sales deduction is taken as the cost of the free goods material.

Billing document in SD

Material

Quantity

Price

Discount

Cost price

Main item

Free goods

10 pieces

1 piece

100 USD

20 USD

- 20 USD

40 USD

5 USD






Individual items in CO-PA

Material

Quantity

Sales revenue

Sales deduction

Costs

Main item

Free goods

10 pieces

1 piece

100 USD

20 USD

- 20 USD

40 USD

5 USD

To implement this example, you must make the following settings in Customizing (for further information, see the IMG under: Sales and Distribution - Basic functions - Free goods):

You activate pricing for the free goods item category (TANN) using special setting ‘B’.

You defined a new condition type, which you set in the corresponding pricing procedure as a 100% discount.

You assign requirement 55 (free goods) to this condition type - which checks for indicator ‘B’ in pricing.

3. Example 3:

Free goods is granted to promote the material ordered.

The costs of the free goods are assigned to the material ordered.

Neither costs nor sales deductions are taken into account for the free goods.

Billing document in SD

Material

Quantity

Price

Discount

Cost price

Main item

Free goods

10 pieces

1 piece

100 USD


45 USD (40 + 5)

Individual items in CO-PA

Material

Quantity

Sales revenue

Sales deduction

Costs

Main item

Free goods

10 pieces

1 piece

100 USD


45 USD

You need to make the following settings in Customizing:

Deactivate pricing for item category TANN. This is the standard version setting.

At main item level in copy control for delivery to billing document, you activate transfer of the cost price from the sub-items to the main item (see the information in the IMG under: Sales and Distribution - Basic functions - Free goods).

Free goods in the Sales Information System

The three examples given in the previous section for CO-PA, are equally valid for the Sales Information System.

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