Free goods

[Former Member]

Hi Gurus,

I am working on free goods.

I have some confusion about condition types used in pricing procedure such R100 and NRAB.Which condition type is used in Inclusive and Exclusive free goods determination and what is the difference between them.

How they are working with Requirement and Base type.I have seen only R100 codition type in sales order and Billing document.

kingly guide me.

Thanks in advance.

Regards

Hemu

[former_member550050 · Accepted solution]

Dear Hemu pls read this with patience and configure

Suppose for e.g take a pen if it is priced Rs 10 and if you apply Free for that take10%

Exclusive means 10 +1 free

means in your sales order ther will be 2 line items one with TAN for 10 units and one with TANN with one unit

first it will be 10 qty which will be priced each Rs 10 and total will be 100

second will be 1 qty which is free

Inclusive means 9 + 1free

( free item is included in the order qty)

means in your sales order ther will be 2 line items first it will be 9 qty which will be priced each Rs 10 and total will be 90 second will be 1 qty which is free

In both these cases there will be two line items will get generated in sales document

first will be chargeable item with item category TAN

The second will be item category TANN

Both this inclusive and exclusive are picked by R100 condition type

Now coming to NARB

Means free goods inclusive without item generation

Means in your sales order there will be only 1 items with qty 10 the free goode cost will be distributed among the 1 item of qty 10

Means the order value will be RS 90 only

There will not be any extra item generated with TANN

For first two cases we use condition type R 100 with requirement 55 and alternate base value 28

Inclusive and exclusive are picked by R100

For the third case we use condition type NRAB with requirement 59 and alternate base value 29

Inclusive without item generation is picked by NRAB

The basic difference between R100 (inclusive or exclusive) and NRAB (inclusive without item generation) is with R100 you will find 2 line items in a sales order TAN and TANN and with NRAB you will find only one line item in sales order that is TAN and there wont be TANN

Business scenario

You went to Shop: And there was scheme if you will buy One Jeans You will get Other Free Of Charge ,

For this you will use R100 Condotion Type, and it will have two line item, one with the Price and Second with 0 Price.

You bought One Laptop, and got Carry Bag Free here you will Use NRAB Conditiopn Type. and Only one line item will be there. No Separate Line item for Carry bag will be there

,

While creating condition record in VBN1 there is a control on left top which tells inclusive or exclusive

Actually you have to choose exclusive here to do NRAB

In the line item while creating condition records you need to specify whether inclusive/exclusive/inclusive without item generation at a column

Here you need to specify inclusive without item generation

Actually what you specify here that is in the line item inclusive or exclusive or inclusive without item generation takes the control in the sales order

If in the left top if it is exclusive you have to choose inclusive or inclusive without item generation in the line item

If in the left top if it is inclusive you have to choose exclusive in the line item

If you understand and practise the concept will be clear to you

I have tried to explain you to the best of my ability and if you reply after understanding this will give a lot of satisfaction to me

Regards

Raja

[former_member184555]

Hi

In the inclusive free goods....the order quantity will include the free goods quantity. Hence in case of inclusive free goods we can offer only the same material and not a different material as a free good. The free goods can be determined as sub item if they are configured in the free goods condition records by selecting the value free goods inclusive. In this case the system determines R100 condition type. If we use the value - free goods inclusive without line item generation, then the system determines NRAB condition type.

In the exclusive free goods - the free goods quantity is exclusive of the order quantity and always creates a sub item for the free goods. Here the free goods can be the same material as that of ordered material or a different material. In this case only R100 will be determined and NRAB will not be determined.

Thanks,

Ravi

[Former Member]

Hi Ramanathan Raja,

In u r above example for NRAB carrry bag free for laptop, can we rise sales order for other material as a free material than original material in NRAB scenario

As i asume that it is only possible in exclusive with R100 condition type ( other material taking as a free of cost material)

thanks

nitchel

[former_member550050]

Hi Nitchel

Please understand the concept and try to map it with example

See LAP TOP is worth around Rs 25000 and a carry bag which is worth Rs 500 only so the shopkeeper decides not to mention the bag free in the sales order

The most apt example would be in Garments shop you buy sarees and when you go out you get a bag free and in nowghere in bill it is mentioned that the bag is free and that carry bag is also maintained as an item in the system

I think this more suitable example

The basic thing to get here is with NRAB the cost of the free item is spread over the ordered item and not shown separately

The concept explained is correect but the examples may not be perfectly correct

Pick the concept only

Regards

Raja