07.freegoods

8/6/2019 07.FreeGoods

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Unit 18: Free Goods TSCM60

Lesson:

614

Free GoodsLesson Duration: 75 Minutes

Lesson OverviewThis lesson deals with automatic free goods determination.

Lesson ObjectivesAfter completing this lesson, you will be able to:

• Set up automatic free goods determination.

Demo:Set up automatic free goods for material M-18.

You can find quantity details for the master record and document in the notesunder the “Free goods - Calculation Rule” diagram.

Business Example• Free goods play a large role in price negotiations with your customers.• As a result, you want to be able to determine free goods and place them

in sales documents automatically.• You are responsible for automating determination of free goods, bearing in

mind that certain information related to the free goods has to be suppliedto Controlling.

658 © 2009 SAP AG. All rights reserved. 2009



TSCM60 Lesson: Free Goods

Figure 223: Exclusive and Inclusive Bonus Quantities (1)

Figure 224: Exclusive and Inclusive Bonus Quantities (2)

In industry sectors such as retail, the chemicals industry or consumer goodsindustry, it is common to provide discounts in the form of free goods.





Free goods can be part of the order quantity not included in the invoice. This iscalled an inclusive bonus quantity. The ordered goods and the free goods both

involve the same material. The quantity units of the free goods and ordered goodsmust be the same.

Free goods can also take the form of extra goods that are free of charge. Theseare called exclusive bonus quantities.

In exclusive bonus quantities, the extra goods are delivered free of charge andare not included in the invoice. This can either be an additional quantity of thegoods ordered or it can be another article.

The exclusive free goods appear in the sales document as a separate, free-of-chargeitem.

Figure 225: Free Goods in the Sales Order

Both forms of free goods are handled in the same way in the sales order. Thematerial that has been ordered is entered as a main item and the free goods materialis automatically displayed as a sub-item.

The item category determines how the item is controlled later in the business

process (for example, for delivery or pricing). Item categories TAN and TANNare used in the standard SAP system. The system determines the free goodsautomatically by accessing the relevant condition records. The system thenaccesses the free goods master record with the pricing date.

As in earlier releases, you can also enter free goods manually by entering data inthe higher-level item and item category fields ( TANN). In this case however,the system does not refer to the free goods master record, and settings such asautomatic reduction of the main item quantity for inclusive quantities or certaincontrols for the delivery are not available.





The system re-reads the free goods master record in the sales order if the quantitiesin the main item change or if the pricing date changes. The system then deletes the

sub-items and re-creates them. Any manual changes to the free goods quantityare lost.

If pricing is re-run in the sales order, it does not affect the free goods determination.

Figure 226: Free Goods - Master Data

The condition technique is used for free goods. Free goods are generally regardedas a supplement to the pricing agreement for a material.

You maintain the free goods in the master records for sales by:

• Using a different menu entry• Going to Prices and Discounts/surcharges when maintaining the master

records

You can define master records for free goods at any level - for example, material,customer / material, price list category / currency / material or customer hierarchy/ material.

You can restrict master records for one level in many different ways:

• Validity period: The condition is only valid within this period.• Minimum quantity: The condition comes into affect when this quantity has

been exceeded• Calculation rule: see next slide• Scales

You can process different master data with the same key for inclusive andexclusive bonus quantities at the same time. You only need to press a button toswitch between the two types of discount.





When you enter an exclusive bonus quantity, an extra entry line appears whereyou can enter the goods item if it is not the same as the ordered material.

Figure 227: Free Goods - Calculation Rule

When you specify a calculation rule, you decide how the system determines thefree goods quantity from the additional and document quantities.

• The free goods quantity is the quantity from which the discount is calculated(not the minimum quantity).

• The additional quantity is the quantity delivered free-of-charge.• The document quantity is the quantity entered by the person creating the

sales order.Three calculation rules are provided in the standard system. The followingexample describes how they work:

You offer supply 20 units of free goods for a free goods quantity of 100 units.

The customer orders 162 units (document quantity).

• Rule 1 Prorated: 32 units of free goods [ 162*(20/100) = rounded down ]• Rule 2 Related to units: 20 units of free goods [ 100*(20/100) = rounded

down ]• Rule 3 Whole units: 0 units free goods [ 162 is not a complete unit of 100]

Calculation rules are stored in the system in the form of ABAP/4 code.

You can also define your own rules (transaction VOFM, under menu entry,formulas).





Figure 228: Free Goods - Analyses and Accounting

You can see detailed information about free goods in Accounting or analyses.

Revenues, sales deductions and costs of free goods can be transferred toAccounting in different ways, shown in the examples below. (MIt = main item,SIt = sub-item)

• Scenario 1 (SAP standard system)

MIt: Not influenced by free goodsSlt: Pricing de-activated, calculation price (VPRS) configured as costs

• Scenario 2

MIt: Not influenced by free goods

SIt: Pricing activated for item category TANN with characteristic B (in pricing procedure,

condition type R100 - 100% discount - is activated by condition 55 at level819), discount is transferred as sales deduction and the calculation price(VPRS) as costs.

• Scenario 3

MIt: Cumulation of calculation price for lower-level item configured at mainitem level (in copying control Delivery → Billing document), cumulatedcalculation price transferred as costs

SIt: Pricing deactivated





Figure 229: Free Goods - Condition Technique

The condition technique provides greater flexibility for using the free goodsfunctions.

The system uses the information about the sales areas, document determination procedure (from the sales document type) and customer determination procedure(from the customer master) to determine the free goods procedure.

The procedure contains a list of the condition types for free goods.

One access sequence (search strategy) is assigned to each condition type. Eachaccess sequence consists of one or more accesses.

Each access contains exactly one condition table. This represents the search keythat the system uses to search for a valid master record.

If the search is successful, the system generates a sub-item for the free goods inthe document. The item category is assigned with the item category usage FREE.

Pricing for both items is controlled with the item category as normal.

You can activate an analysis of the free goods determination in the sales document.The system then displays detailed information on how the free goods weredetermined.





621 Exercise 29: Free GoodsExercise Duration: 30 Minutes

Exercise ObjectivesAfter completing this exercise, you will be able to:• Create different master records for free goods• Explain how free goods affect the sales process• Describe how to control free goods

Business ExampleYou can extend pricing by using free goods in the form of exclusive and inclusive bonus quantities. You make the relevant agreements with your customer. Thesewill be automatically controlled by the SAP System in the document when youenter a sales order.

Task 1:You have agreed on a price reduction for customer T-S62A## in the form of freegoods.

1. Create a free goods master record (free goods type NA00) for salesorganization 1000 and distribution channel 10 . If the customer orders at least20 units of material T-ATC## , 10% of the purchased quantity is to be free of charge. The free-of charge material should be a proportion of the quantity inthe higher-level item.

2. Create a trade fair order ZA## with purchase order number ##LO605-ZA##13for customer T-S62A## and material T-ATC## . Order quantity is 10 units.

What message appears?

____________________________________________________

3. Increase the quantity to 40 units. What are the quantities in the higher-leveland sub-items?

Main item: _________________________

Sub-item: _________________________

Continued on next page





Task 2:You make another free goods agreement with customer T-S62E## for materialT-ATD## . The minimum order quantity is 20 units. You want to deliver onefree-of-charge unit of material T-ATA## for each 20 units ordered.

1. Create the relevant master record for sales organization 1000 and distributionchannel 10 .

2. In the record, indicate that the system only determines the quantity of thefree-of-charge material in multiples of the free goods quantity.

3. Create a trade fair order ZA## with purchase order number ##LO605-ZA##14for customer T-S62E## and material T-ATD## . Order quantity is 40 units.

Task 3:Optional

The system automatically created a free goods sub-item for the order with purchase order number ##LO605-ZA##14 . The system runs pricing for thissub-item even though it is free of charge.

1. Which item category did the system find for the sub-item and which key didit use?

Item category: _______________________

Key: ______________________

2. Which settings in Customizing affect pricing for the free-of-charge item?

____________________________________________________





Solution 29: Free Goods

Task 1:You have agreed on a price reduction for customer T-S62A## in the form of freegoods.

1. Create a free goods master record (free goods type NA00) for salesorganization 1000 and distribution channel 10 . If the customer orders at least20 units of material T-ATC## , 10% of the purchased quantity is to be free of charge. The free-of charge material should be a proportion of the quantity inthe higher-level item.

a) Logistics → Sales and Distribution → Master Data → Conditions→ Free Goods → Create

Discount type: NA00

Customer: T-S62A##

Material: T-ATC##

Lowest quantity: 20

For: 10

Unit of measure: PC

are free goods: 1

Unit of measure: PCCalculation type: 1

Free goods delivery control (L): blank

Save → Exit

2. Create a trade fair order ZA## with purchase order number ##LO605-ZA##13for customer T-S62A## and material T-ATC## . Order quantity is 10 units.

What message appears?

____________________________________________________

a) Order

Logistics → Sales and Distribution → Sales → Order (order type ZA##) → Create

b) What message appears?

Minimum quantity of 20 PC of free goods has not been reached.






3. Increase the quantity to 40 units. What are the quantities in the higher-leveland sub-items?

Main item: _________________________

Sub-item: _________________________

a) Main item: 36 pieces

Sub-item: 4 pieces

Task 2:You make another free goods agreement with customer T-S62E## for materialT-ATD## . The minimum order quantity is 20 units. You want to deliver onefree-of-charge unit of material T-ATA## for each 20 units ordered.

1. Create the relevant master record for sales organization 1000 and distributionchannel 10 .

a) Logistics → Sales and Distribution → Master Data → Conditions→ Free Goods → Create

Discount type: NA00

Button: Exclusive BQ

Customer: T-S62E##

Material: T-ATD##

Lowest quantity: 20

For: 20

Unit of measure: PC

Additional quantity: 1

Unit of measure: PC

Additional matl: T-ATA##

2. In the record, indicate that the system only determines the quantity of thefree-of-charge material in multiples of the free goods quantity.

a) Calculation type (ReR): 2

3. Create a trade fair order ZA## with purchase order number ##LO605-ZA##14for customer T-S62E## and material T-ATD## . Order quantity is 40 units.

a) Logistics → Sales and Distribution → Sales → Order (order type ZA##) → Create






Task 3:Optional

The system automatically created a free goods sub-item for the order with purchase order number ##LO605-ZA##14 . The system runs pricing for thissub-item even though it is free of charge.

1. Which item category did the system find for the sub-item and which key didit use?

Item category: _______________________

Key: ______________________

a) Logistics → Sales and Distribution → Sales → Order (order type ZA##) → Create

Item category: TANN

IMG → Sales and Distribution → Basic Functions → Free Goods →

Item Type Determination for Free Goods Item

Key: ZA## / NORM / FREE / TAN

2. Which settings in Customizing affect pricing for the free-of-charge item?

____________________________________________________

a) IMG → Sales and Distribution → Basic Functions → Free Goods→ Control Free Goods Pricing → Control pricing for free goodsitem category

→ Item category:

Pricing: B Pricing Free goods (100% discount)





Lesson Summary

You should now be able to:• Set up automatic free goods determination.




TSCM60 Unit Summary

Unit SummaryYou should now be able to:• Set up automatic free goods determination.




Unit Summary TSCM60


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