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I do not want to Create Delivery Document For Sales Order Type : FD (Free of Charge)

Sep 26, 2017 at 03:47 PM


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I have a scenario to give Free Items to Customer. To address this i will configure FD Sales Document Type to give Free Of Charge Item. Now the problem is, the item i am using is Non-Stock-able item and i do not want to create a Delivery / PGI document as there is no movement of Stock is happening. So, I am not doing Delivery / PGI as well as this Order will not go for the Billing also as it's an Free Of Charge Item.

If i will not do the Delivery / PGI as well as Billing, Status of these Sales Orders will always remain as Open.

So my first Question is, is it Okay to keep Orders as Open if Scenario is as explained above.

If Answer to above Question is 'No - It's Not Okay To Keep The Orders as Open' then my next question is what should be the treatment of such orders to keep the status as Closed.

Thanks in advance for your valuable feedback

Warm regards

Alok Singhal

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2 Answers

Best Answer
Veselina Peykova
Sep 26, 2017 at 04:38 PM

Q1: is it OK to leave the order as open?

A1: No, you cannot archive open or 'in process' documents, which means that you will have to reject the items later in mass, which will end up in losing important business information. And your delivery due list will grow over time, so I would never leave orders in such status on purpose.

Q2: What should be the treatment?

A2: I do not know what exactly you wish to have in the order for these free items - my guess is just quantity for the warehouse to know what to load on the truck, but no idea about pricing - probably you will want something for reporting purposes.

If you really want to have an order item not relevant for delivery and billing, you could create a new item category, which is not billing relevant, set whatever is suitable for pricing, set schedule lines allowed to 'X', possibly business data allowed = 'X' as well, then assign a suitable schedule line category like the standard one - CD.

You still need to double-check what is the legislation in the country that will use this process - in some countries, if you give items for free or a discount over a certain percentage, you or the customer need to pay taxes and/or you need to issue legal reports or show the free items in billing, etc, which will mean that you will need billing relevance. If you perform shipping and not just give free stuff like flyers to the customer, you need delivery relevance (for which you do not necessarily need actual GI to happen), but you will want to know weights/volumes/packaging.

I hope you have triple-checked with the FICO department and ensured that they do not want to report on these items in billing - just because you give away something, it does not mean that it is free (from their perspective) and that they won't tell you: 'we have this WBS...'.

In general, in most cases I would avoid skipping delivery relevance even for non-stock items, because you have limited ways to track the actual execution and you would not be able to print proper papers for the warehouse and for the driver. I would set up copying to delivery and no billing (if billing is really not needed).

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Dear Veselina

Thanks a lot for your time and concern shown to the query i have raised.

"What Exactly You Wish To Have In Order For These Free Items" - Well it's an IS-Media (IS-M-SD : IS Media Sales & Distribution) implementation. So free items are actually Newspapers distributed for free for various purpose. Printed and Distributed within the organization, Free copies given to Sales Executives for distributing to prospects as a sample and various other scenarios.

Implementation is done in India and there are no Tax Liabilities in Newspaper Sale or Free Distribution to Readers.

Yes, I have consulted with FICO department and they have no concerns in distributing free and not raising any bill.

There are actually 2 scenarios.

Scenario 1 - Newspapers are sold to Agents (Business Partners) and Bills are raised. For this i am going ahead with Order Related billing. So will not do any Delivery/PGI. Moment bill is generated order status is no longer remain as Open.

Scenario 2- Newspapers are distributed to Readers or to internal departments etc. Free Of Charge. As we are not keeping any inventory of Newspaper Printed hence would like do away with an extra step of Delivery / PGI where as neither we are keeping stock of Newspaper nor we are moving any stock using movement types. For this reason only i was looking for a solution that how to handle this situation where without doing Delivery / PGI / Billing I will able to keep the Status either as Closed or keep it open if there is no impact.

But you are right that if I will keep the status open they will definitely crate problem in future. Let me think further on this so that able to close the orders with some minimum efforts.

Thanks a lot once again.

Warm regards

Alok Singhal

Fausto Regis de Oliveira Motter Sep 26, 2017 at 05:36 PM


If I understood, my assumptions:

a. Your scenario is only Sales Order > Billing Document;

b. You dont need to create the delivery because you dont have inventory quantity for refered material;

c. Your problem is the sales order status still "open" because you dont create the delivery.

If my assumptions are correct, please, transaction VOV5 ( Schedule division) and in the correct category + MRP type, use the value "CD" (without delivery). In this case, after bill your order, the order status will be "completed".

Please inform if it works, FM

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Dear FM

Thanks for your response to my query.

I am actually have a scenario where neither i want to do billing (Items are Free of Charge) nor i would like to do Delivery / PGI as there is no Stock Movement happening.

Now, the issue is if i will not do Billing as well as Delivery/PGI then status of Orders will always remain OPEN. Which Veselina had correctly pointed out that will create problem in future.

I am further exploring it to find out best solution so that i will able to reduce the work of my end users at the same time orders will also get Completed.

Thanks a lot for your time and concern FM.

Warm regards

Alok Singhal