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author's profile photo Former Member
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Free goods pricing procedure


I need to configure the free gods functionality and I look for clarification from those who have configured it . My questions are.

1) how does the system determines while creating sales order that free goods are involved.

2) for main item, if the item category is TAN, then for exclusive free goods the item category will be TANN ? Is the following combination ok for free goods item category detemination ?

OR + NORM+TAN(higher level) +FREE(usage)=TANN......where TAN is the item cateogry of main item

3) How is the free goods pricing procedure works. ?? I mean do we have to define the basic price condition PR00 in the free goods pricing procedure so that the system applies the basic price to the main item ? for example if the main billable qty is 10, and per unit price is 100, then the basic price will be 10*100=1000 for the main billable items in the free goods pricing procedure.

now if free goods are 2 (exclusive), then the system shows in the pricing line item a basic price of 2100=200 and then a condition R100 is shown as a negative amount of 2100= -200 so that net value is zero ??

4) I think when the material is entered, then the system reads the free goods master record and then determines the main item category for billable item and then free item category is determined and then pricing is carried out

pls validate my above points ?


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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 28, 2010 at 03:44 AM


    Check the answers below

    1. Kindly go to t code V/N6 to activate the free goods determination on the basis below

    Sales org//Dist channel/Division/Doc pricing procedure/Cust pricing procedure

    2. combination is OK check in the t code VOV4 -item category determination

    ORNormusageHigher level item categoryDefault item category

    3.Check the belwo path how free goods procedure works

    SPROIMG-Sales and dist-Free goods-Control free goods pricing

    Maintain the requirement 2 in the pricing procedure V/08 against the condition type PR00



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  • Posted on Jan 28, 2010 at 03:52 AM

    Dear Friend,

    1. If you hvae activated the ree Goods Determination in V/N6 then system will determine Free Foods Procedure once you start creating Sales Order.

    2. Yes the Item Category determination you have explained is correct.

    3. The Net value of Free Goods Item is zero becuase you will post the value of R100 in some Sales Promotion or Cost of Sales GL Account when you create Invoice.

    4. Based on the Condition Tables assigned to the Free Goods Procedure system will search for the Condition Records. E.g. If your key combination is Sales Orgn + Material then system will get Free Goods as sson as you enter Material Details in Sales Order.

    But if your Key combination is Customer + Material then Free Goods would be determined in Sales Order only when you enter Customer code & Material Details.

    Hope this helps...


    Jignesh Mehta

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    • Hi

      Yes, there will be only one pricing procedure for free goods and normal goods.

      Free goods procedure is to determine the free goods condition records (maintained through VBN1) and now way related to pricing.

      Pricing procedure is to determine the price for each line item based on the conditon records (maintained through VK11).

      As an example- there is free goods conditon record for a material as 10 + 2 exclusive and hence for an order quantity of 10 you can see a second line item for a quantity of 2 as a sub item with item category as TANN.

      The pricing happens the same way for both the line items and you can check that in the conditions tab of each line item.

      While carrying out the pricing, system goes to the first conditon type in the pricing procedure and if it satisfies the requirement then accesses the conditon records and picks if there is any valid conditon record. Like wise, it checks all the condition types in the pricing procedure. In this process it also checks the conditon type R100 and the requirement will not be satisfied for the first line item and hence will not determine any value. In the case of the sub item with TANN item category, the condition records will be determined as happened for the first line item and also the R100 will be determined. Because, the reqirement for R100 says, the pricing details(in VOV7) for the corresponding item category(which is TANN) should be B-Pricing for free goods(100% discount). TANN satisfies this conditon and it determines the total amount here, making the net value as zero. If there are any values below the R100 condition type in the pricing procedure, then the net value will not be zero. Hence positioning of the R100 condition type has importance in designing the pricing procedure. If you change the value for TANN in VOV7 from B to X, then R100 will not be determined even though the free goods are determined in the sales order as sub items. The pricing happens the same way to both main item and sub item (free goods).



  • author's profile photo Former Member
    Former Member
    Posted on Jan 28, 2010 at 04:00 AM
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