free of charge item to be track separately into different GL

[Former Member]

Dear All,

I have a question,  during free of charge process , the client wants the material which is sent as a free of charge to be  tracked separately. It should not debit the customer.

The scenario is  if there a material which is found faulty  the customer will send back the material back to the client.  The client will check the material if the material is faulty  and if the material is under warranty then they will replace the material through FOC .

During this FOC ( free of charge ) the client does not want the value of the material to be debited to the customer.  They want to track it separately   by hitting a  different GL account  during billing.

How to go about it. 

Should we need to create a separate pricing procedure ?  and assign a separate account key and track it.

But how will the DR account will be tracked separately into another account instead of customer?

Kindly guide.

[moazzam_ali]

Dear Kumaresh

As rightly Mr. Lakshmipathi said please clear your requirement. You want to bill this material separately with VF01 or you just want to hit accounts at the time of PGI? If it is at the time of PGI only then follow the instructions given in above post.

If requirement is that you want to create second accounting entry  (first at PGI, second in VF01 billing) then you need to do a little configuration. Please use item category TANN or make a copy of it. Pricing in item category must be B Pricing for free goods (100% discount). Assign it with your FOC order. You don't need separate pricing procedure but you need separate item category for it. Add R100 condition for free goods pricing in your pricing procedure and assign FOC G/L account key with R100. Maintain condition record for 100% for this condition and test this. Search forum for more information about R100 condition free goods pricing in SD. Update here if you need more help in this.

Thanks

[Former Member]

Hi, thanks for your reply.

It is not at PGI  , but during invoice.  that the client want to track it separately instead of hitting the customer account .

[moazzam_ali]

HI

I have told you exactly the same what you want. It is for invoice VF01. Follow the instructions for second accounting entry in my above post.

[Lakshmipathi]

free of charge to be  tracked separately. It should not debit the customer

As long as the material is not relevant for pricing, the respective value wont be debited in customer account. 

They want to track it separately   by hitting a  different GL account  during billing

Here again, I believe, you intend to say only your inventory value should get hit and you can very well differentiate the FI postings for this.  For that, you have to play around in OBYC for Transaction GBB where you can differentiate this with Valuation modification, which your MM consultant can do.

G. Lakshmipathi

[Former Member]

Thanks for your reply lakshmipathi.

What i meant to say is like if during billing  the Customer A/c is getting debit and your any sales account is getting credited.

Then  in that case customer wants to track all the FOC material hitting a seperate GL account rather than the customer.

The suggestion you gave is I believe for the inventory account. ( In OBYC transcation) .  but what the customer want is  like hitting some thing like 

FOC sales A/c DR   XXXX             and

            Sales Domestic CR. XXXX

I hope your are getting my point.

Thanks