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    Free Goods: Sales & Distribution

    Uploaded by

    mshabnam
    This document discusses free goods functionality in a sales system. There are two types of free goods: inclusive bonus quantity, where the customer pays for some items and gets additional items free of charge, and exclusive bonus quantity, where the customer pays for their order and receives extra free items. Free goods are set up using conditions and can be automatically added to sales, delivery, and billing documents. However, there are some constraints on free goods processing.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Free Goods: Sales & Distribution

    Uploaded by

    mshabnam
    167 views8 pages
    This document discusses free goods functionality in a sales system. There are two types of free goods: inclusive bonus quantity, where the customer pays for some items and gets additional items free of charge, and exclusive bonus quantity, where the customer pays for their order and receives extra free items. Free goods are set up using conditions and can be automatically added to sales, delivery, and billing documents. However, there are some constraints on free goods processing.

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    Free Goods

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    This document discusses free goods functionality in a sales system. There are two types of free goods: inclusive bonus quantity, where the customer pays for some items and gets additional items free of charge, and exclusive bonus quantity, where the customer pays for their order and receives extra free items. Free goods are set up using conditions and can be automatically added to sales, delivery, and billing documents. However, there are some constraints on free goods processing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    167 views8 pages

    Free Goods: Sales & Distribution

    Uploaded by

    mshabnam
    This document discusses free goods functionality in a sales system. There are two types of free goods: inclusive bonus quantity, where the customer pays for some items and gets additional items free of charge, and exclusive bonus quantity, where the customer pays for their order and receives extra free items. Free goods are set up using conditions and can be automatically added to sales, delivery, and billing documents. However, there are some constraints on free goods processing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 8
    At a glance
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    The key takeaways are that free goods functionality allows supplying certain goods for free or a portion of goods for free to enhance sales. The different types are inclusive and exclusive bonus quantity.

    The different types of free goods are inclusive bonus quantity and exclusive bonus quantity.

    For inclusive bonus quantity, the customer only pays for some of the goods ordered, with the rest being free. The quantity of free goods can be shown as a separate item or included in the same line item.

    Free Goods

    Sales & Distribution

    Company
    LOGO
    Topics

    1. Introduction

    2. Free Goods Types

    3. Inclusive Bonus Quantity

    4. Exclusive Bonus Quantity

    5. Free Goods Processing

    6. Free Goods Constraints


    Introduction

     In Sales processing in various Industry sectors it is


    required to supply certain goods for free additionally or
    supply customer with a portion of goods for free.

     Free Goods functionality in system caters to these


    requirements and enables business to enhance sales
    operations.

     Types of Free goods provided in system are explained in


    following slides
    Inclusive Bonus Quantity

     Inclusive Bonus Quantity:


    In this type of Free Goods, the customer only pays for
    some of the Goods ordered, rest of goods being free of
    charge. This is also called as Inclusive free goods.

    Example: In an order of 20 cases of toothpaste,


    customer would be charged only for 18 cases, 2 being
    inclusive free goods and not charged.

     Two options are available in system for Inclusive bonus


    quantity. The quantity of free goods can be shown as a
    separate item or be included in the same line item in
    sales document.
    Exclusive Bonus Quantity

     Exclusive Bonus Quantity:


    In this type the customer pays for the goods ordered and
    is additionally given extra goods free of charge. So in this
    case, a larger quantity is delivered than ordered and
    additional quantity delivered is not charged.

    Example: Customer orders for 2 welding machines and is


    supplied with a case of welding rod consumables, but is
    not charged for it.

     The material supplied additionally need not be the same


    as materials ordered in this case.
    Free Goods Processing

     Free Goods Processing



    For Free goods processing condition needs to be set up in
    system. ‘NA00’ is Free goods condition type available in
    standard system.
     Conditions are maintained by standard Condition technique and
    can be maintained at various levels i.e. Customer/Material,
    Customer Hierarchy/Material etc.
     Free goods agreement is setup with validity period and various
    controls are available for system behavior of free goods while
    maintaining condition records. These are explained in user
    guide.

    Based on condition records set, these are automatically
    determined in Sales order and can be copied on to Delivery and
    Billing document as separate line items.
    Free Goods Processing

     Free Goods Processing



    An item in sales document becomes free of charge when 100%
    markdown is applied on the item. With this the prices are visible
    however there is no net price applicable. Standard system
    contains condition type ‘R100’ for this purpose.
     In Inclusive Free Goods case without item generation the total
    price is adjusted in a way to effectively have no charge for
    quantity of free goods in the item. This is controlled by a
    condition ‘NRAB’ available in system and assigned in pricing
    procedure.
    Free Goods Constraints

     Free Goods Constraints


    There are couple of constraints in system for free goods
    processing. Free Goods can be supported on a 1:1 ratio,
    i.e an order item can lead to only one more item.

    With material 1, material 2 & 3 to be given free of charge


    are not supported.

    Free Goods are also not supported in combinations with


    structures like BOM explosion etc. also they cannot be
    used in Make-to-order production, Third party processing
    and scheduling agreements.

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