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Issuing free good using promotion code

Former Member
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Hello All,

Following is my business requirement, can someone throw some lite on it on how to achieve this in SAP SD.

Manufacturer keeps the stock with Dealer and end user (consumer) always buys products from Dealer.

The business process is Manufacturer runs a promotion where if customer buys a 3 quantity of product "A", he gets one quantity of product "B" free. But the product "B" is not given at the time of buying the product "A".

First consumer should buy 3 quantity of the product "A" and then submit the invoice to manufacturer, then manufacturer, will use the promo code and send product "B" to customer at free of cost.

Is there any way to achieve this in SAP SD, please throw some lite on it, your inputs are highly appreciated. Please let me know if I am not clear here.

Thanks,

JM

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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HI JM Rao,

i have not tested this scenerio but you may try with this:

i. Create new schedule line, say ZZ where assign delivery block to it.

ii. Assign this schedule line to your item category TANN.

iii. Rest thing remain same as per standard free goods determination,

iv.When you process your sales order it will process in this way:

Material               qty         item category    schedule line

A                             3              TAN                       CP

B                             1              TANN                    ZZ

Now material A will be delivered with 3 quantity and billed
as well. After receiving invoice confirmation form your buyer you may remove
delivery block from the free item B and deliver it.

thanks,

Sandeep Singh Chuahan

Former Member
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Hi Sandeep,

Thanks for the reply.

As I said above order is placed with Dealer but not with Manufacturer. So order is created outside SAP. Since Manufacturer is running a promotion that if customer buys a 3 quantity of product "A", he gets one quantity of product "B" free.

As a proof of document, consumer submits the order invoice to Manufacturer for getting the free good, then manufacturer creates an order, he enters the promotion number in order. Based on the promotion id, system should determine the free good (product "B") in order and will be delivered to consumer at free of cost.

Thanks,

JM

Former Member
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So in that case, your manufacturer is creating the second sales order manually. They can choose the product B manually and deliver it as free of cost using the standard free of cost concept in SAP.

What is the problem? Do you want to map the promotion code with product B? Are there multiple products with multiple promotion codes?

jignesh_mehta3
Active Contributor
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Hello JM,

Who is the final Customer in your SAP system? Dealer or End Consumer?

If the End Consumer is recorded in your system, I will suggest creating a Z-Table that will keep track of Material codes and quantity that the Customer has purchased.

When the Customer come with Invoice to claim free goods, the enhancement in FOC Order will check the Z-table for Free Goods eligibility and allow the FOC Order to be processed.

Thanks,

Jignesh Mehta

Answers (6)

Answers (6)

Former Member
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Hello Everyone,

A big thank you to all and appreciate for your suggestions and inputs here.

We are still in discussion phase, I will post the solution here once it is finalized. Thank you all once again.

Thansk,

JM.

former_member182378
Active Contributor
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JM.

Please answer Jignesh's question

Who is the final Customer in your SAP system? Dealer or End Consumer?

also, as Jelena's commented

Also it'd be much easier to just give free goods to the dealer and let them take care of distribution. 

why is consumer going to the manufacturer for free goods (promotions)?

thanks!

tw

Jelena
Active Contributor
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This looks suspiciously like fishing for some free consulting. What exactly is the issue here? Using the coupon codes? Tracking the materials / orders?

This looks like a rebate process but free goods given instead of money back. Not sure if the rebate process could be used for this but may be worth looking into. Also it'd be much easier to just give free goods to the dealer and let them take care of distribution. Otherwise what if the customer gets a freebie but then returns the goods to the dealer? You're also bearing additional shipping cost and what if the item gets lost/damaged in shipping?

Overall the devil is in the details here. It's not difficult to put the coupon codes in a Z table or use the standard free goods determination. But do you need to tie the free goods to the dealers' order somehow? Do you need to retain the documentation (e.g. invoice copy)? What are the reporting needs? How do you want to capture costs? Not sure it's fair to expect SCN members to design a full solution...

Former Member
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JM,

You can use free goods with item generation to explode the promo material when the sales material is input in the order.

Since the sales material is already sold and need not be delivered with the new order, manually make it a text item, using manual item category. For the text item, maintain the free goods item category determination as below. This will help to automatically identify the promo material for a sold material as per the quantity restriction.

Order typeItem Cat GrpItem UsageHghr ICIC
SalesORZHDR TATX
PromoORZPRMFREETATXTANN

Regards,

Dinesh.

Former Member
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Dear JM,

       Manufacturer can issue the free goods by using Free of charge(FD).

former_member182378
Active Contributor
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JM.

This is an interesting business scenario! Thanks for sharing it with the community!

Most important points are:

1. Manufacturer uses SAP, Dealer does not.

2. How does manufacturer come to know what and how much to give free (as promotion)

Suggestion:

When consumer buys the items from the Dealer, the invoice should contain:

The Free goods - material code / description and quantity

The promotion id

When consumer shows this invoice to the Manufacturer, the order entry staff knows exactly what material and how much quantity. He will create a FOC order.

In PO number field, he can give the promotion id. Thus for reporting purposes, VBKD-BSTKD = promotion id can be used.

typewriter

former_member220617
Contributor
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Dear JM,

I think you will achieve this through user exit by incorporating small logic .

customer is giving order invoice to manufacture to get free items and in invoice there will be some batches numbers of product A , based on this you can enter in SAP order level

for 3 product  of A  one product of B is Free .

so in this scenario customer will give order invoice and you will find batches . enter these batches in Item level Text and write logic in the user exit level to check with delivery or billing item level table, if it not matches then it has to through the error .customer will give limited order invoice because it is for promotion and if same customer is giving second order invoice then you can enter in second line item.

you can also enter promotion id in the same item level text .so that if you want to track also it is easy to track .

pricing will be as per free goods .

Regards,

C.B Reddy.