Free goods post to different accounts

[Former Member]

Dear SD Gurus,

Kindly need help about the below requirement,

A distributor company grants free goods to their customers; free goods can originate from the company itself or from company's vendors. When free goods are granted from vendors they are not granted in physical form but just as a commitment from vendor side to compensate for the free goods financially. Now, in sales order I use condition type R100 for 100% discount and I want that condition to post to different account when the free goods are from vendor side. The issue is, in accounting determination; there is no key field I can use as a determination factor to make R100 posts to a different account. I tried using 'Material Account Assignment Group - KTGRM', but this field can only be assigned to material master and can't be changed in sales order.

any suggestions?!

Thanks,

[former_member182378 · Accepted solution]

Abdelaziz,

I would start my "analysis" of this business requirement with the last sentence of Sai

how do you differentiate both of them?

If the difference between goods supplied by vendor and by your company is the delivering plant, then you could add delivering plant to a new condition table and set it in your access sequence of the Account determination configuration.

Have different "condition records" (with different G/L accounts) one for Plant (WERKS) of the vendor and the other for Plant (WERKS) of your own company.

On a general note - Look in to the fields of the Field catalogue, Account determination (in IMG) to get an idea of what fields can be used to differentiate free goods supplied by Vendor and free goods supplied by your company.

[Former Member · Accepted solution]

Hi,

Thanks for your reply, I differentiate between free goods types by condition type maintained in VBN1 (i.e. NA00 for normal free goods, and YNA0 for vendor-provided). I can't use delivering plant because vendor free goods are not maintained in different plant

I will consider looking at filed catalog, thanks for that hint

[former_member182378 · Accepted solution]

Abdelaziz,

Comparing NA00 and YNA0 (free goods_Vendor), what are fields in the condition table for both these free goods condition types?

In other words, how does system find a valid free-goods condition record, in the case of company giving free goods and vendor giving free goods?

[Former Member · Accepted solution]

Hi T W,

The condition technique I use for free goods determination is as follows

Procedure  YNA001

     10  YNA0     ->      Access: NA00 Customer/Material

     20   NA00     ->     Access: NA00 Customer/Material

Both condition type use the same access sequence, and the same condition table customer/material. The difference is in free goods condition creation. If free goods are vendor provided, then the user creates record using YNA0. However, if it is not vendor provided, the user creates record using NA00

During order creation, if the system finds record in YNA0, it ignores NA00 even if there is a record maintained. But, if YNA0 is not maintained, the system reads records of NA00. Thus, YNA0 overrides NA00.

Now, the problem is that account determination procedure doesn't see conditions of free goods procedure. Thus, whatever free goods condition YNA0, or NA00 is determined, account determination procedure posts to the same account as it sees both cases as R100 ERS

One solution I think of is to include free goods condition type in account determination field catalog, but I don't which table the system uses to store free goods condition type determined for the item during sales order creation

[former_member182378 · Accepted solution]

Abdelaziz,

The difference is in free goods condition creation. If free goods are vendor provided, then the user creates record using YNA0. However, if it is not vendor provided, the user creates record using NA00

Could you please explain what you mean by "user creates record using YNA0 / NA00"?

How often does user create the free goods condition record? (per sales order, line item!)

If condition records are created for both free goods condition types (one time activity), then how system can determine (choose) whether to "pick up" condition type YNA0 or NA00? (when the condition table is the same and the line item, of the sales order is the same)

[former_member182378]

Abdelaziz,

From a business process perspective:

A company manufacturers products and also employs vendors to manufacture products.

These products are then sold to the customer (of the company).

If vendor gives some products for free to the company, then this should be tracked from the Procurement side (why do you want to track this from the sales side? Especially when the you sell products to the customer, the product (from the vendor or the company) is the same (e.g. the name, material code etc.)

During the procurement probably the vendor has two names for the same product - one what the vendor calls it and the other is the name given by the vendor's customer (i.e. the company).

So, to distinguish based on different product codes is much easier (it seems) from the Procurement side.

Could you please tell, at what stage of the process, does the vendor convey that the product can be given for free?

[former_member184080]

Hi,

I can think of 2 solutions here.. It may not be a good one..

1. Have a different Item category ( which will be copy of TANN) for vendor free goods. In your account determination, you can have Item category as one of the access sequence ( may be the first access). So, when you have this Item category, system will pick up the relevant accounts.

Problem with above solution is: Your company will not have any control and vendor can create orders with "N" number of free goods. To prevent this, you may have to develop a Z report and check the orders frequently. Even, this is also very time consuming one.

2. Create a different sales order type for vendor related free goods.Which will have different pricing procedure and for that R100 you can assign different account key. So, it will post to the respective expense account.

One point which I would like to understand is: Do you create any free goods records for Vendor related as well company related free goods.If so, how do you differentiate both of them?

Regards, Sai Krishna.

[Former Member]

Dear Sai,

Thanks for your reply and suggestions

I thought about the two options but unfortunately they have other problems

1. I tried to set different item category for vendor-provided free goods, but also there is no key factor to differentiate with in item category determination as in both cases I would have the same document type + item category group + usage + higher level item. A workaround maybe to set different item category group but this would determine account at material level. However, I want it at sales order item level

2. Using different document type for vendor free goods will work technically, but the business user would have to group all items that have vendor-provided free goods in a different order which will be cumbersome process

Regarding your question; yes I use two different free goods condition types for the two cases, but they just control quantity of free goods and calculation rule, and they have no effect on pricing condition type R100 or account determination

[Shiva_Ram]

Sai's first recommendation should work for your scenario. Create a new item category and assign in the item category determination (for example, manual item category). In the revenue account determination (t.code VOK1), create a new table with Item category as one of the fields, then assign it to the access sequence(first step) for KOFI. Then add relevant G/L account for this new table key fields. This should take care of your requirements.

Regards,

[former_member182378]

Shiva,

In your experience (or your thinking) would it be worth the effort (i.e. configuration, settings) to create a new item category just for account determination purposes?

Moreover, which has to be set (at line item level) manually by the user!

Would any field, at line item level, not be a much "easier" option?

Added comment: Like in the case of Free goods - for the purpose of pricing;

Or like in the case of 3rd party sale - for the purpose of settings at the Schedule line category level; there is no "direct" reason, to have a different (new) item category (w.r.t. this business requirement).

[former_member184080]

Hi TW,

Why I have suggested the Item category at account determination is: In my current client the orders are being booked by distributors and a file will come via Interface. We use the BG job and create the sales orders. based on certain parameters the Item category get changes in sales order.

If you see my post: I requested OP to explain as to how they book the sales orders.

Yes, if theydo all transactions manually then we can't suggest above one, but, have to think alternative solution.

Regards, Sai Krishna.

[sri_ram18]

Hi,

Try with a new movement type.

Create a new movement type and assign it in the schedule line and use it when u are doing transaction with free goods.

Modification needed

Step 1 At Movement type OMJJ

For instance Movement type 601 has to be copied into 999 and under Account Grouping tab

Select all VAX fields which are beside GBB and rename it with ZAX..

Step 2 Now goto OBYC key in your company Chart of Accounts and GBB create a new link between ZAX and a new G/L Account.

and here we go now....

PS Take help from Material's and Finance team for their respective areas for changes.

Let me know the result.

Thanks,

Sriram.

[Former Member]

Hi Sriram,

Thanks for your suggestion, your solution works properly but unfortunately it wouldn't achieve my need as I want both free goods types to post to the same inventory accounts during goods issue, but different accounts at billing (i.e. Expense account, and Intermediate account to be cleared with vendor)

[former_member184080]

Hi,

Could you plz tell me how do you book the orders from vendor/distributor ?

Regards, Sai Krishna

[Former Member]

If I understood your question correctly; you are asking about how free goods from vendor are treated during PO and Goods Receipt? Right?

Well, at PO and Goods Receipt; there is no differentiation, all goods are invoiced. Later, the vendor tells our distribution company to grant free goods to customers, then vendors compensate our company for these free goods financially

[former_member184080]

I would like to know 2 things here.

Even i am supporting a project where the orders and goods movement are being done at distributor end and orders are being created via Interface.

Now, could you please help us to understand how you are getting orders from distributor? Why i am asking this is, if its via Interface, you may think of having TANN as manual item category and can populate them in orders.

Please clarify how do you get the orders in your case.

Regards, Sai Krishna.

[Former Member]

Hi Sai,

No I don't use interfaces, all transactions are inserted by user in the system