In SAP’s Sales and Distribution (SD) module, Inclusive Free Goods refers to a scenario where the free goods are included within the total ordered quantity. This means that the customer receives additional units at no extra charge, and the system adjusts the unit price accordingly. For example, under a “Buy 10, Get 2 Free” promotion, if a customer orders 10 units, they receive 12 units in total but are charged only for 10 units. This approach is beneficial for businesses aiming to offer promotions without complicating the sales order with additional line items.

Configuring Inclusive Free Goods in SAP

To set up Inclusive Free Goods in SAP, follow these detailed steps:

1. Define the Free Goods Condition Type

  1. Access the SAP Customizing Implementation Guide (IMG):
    • Navigate to: SPRO → SAP Reference IMG → Sales and Distribution → Basic Functions → Free Goods → Condition Technique for Free Goods → Maintain Condition Types.
  2. Create a New Condition Type:
    • Copy the standard condition type NA00 to a new custom condition type (e.g., ZNA0).
    • Assign an appropriate Access Sequence (e.g., NA00).
    • Ensure the Calculation Type is set to Percentage.

2. Define the Free Goods Procedure

  1. Navigate to:
    • SPRO → Sales and Distribution → Basic Functions → Free Goods → Condition Technique for Free Goods → Maintain Procedures.
  2. Create a New Procedure:
    • Define a procedure (e.g., ZFREE) and assign the previously created condition type ZNA0 to it.

3. Assign the Free Goods Procedure to Sales Area

  1. Navigate to:
    • SPRO → Sales and Distribution → Basic Functions → Free Goods → Condition Technique for Free Goods → Assign Free Goods Procedure to Sales Area.
  2. Assign the Procedure:
    • Map the Sales Organization, Distribution Channel, and Division to the Free Goods Procedure (e.g., ZFREE).

4. Maintain Free Goods Condition Records

  1. Transaction Code: VBN1
  2. Create Condition Records:
    • Enter the relevant Sales Area, Customer, and Material.
    • Set the Minimum Quantity required for the promotion.
    • Specify the From quantity (e.g., 10 units) and the corresponding Free Goods Quantity (e.g., 2 units).
    • Ensure the Free Goods Category is set to Inclusive.

5. Adjust Pricing Procedure

  1. Navigate to:
    • SPRO → Sales and Distribution → Basic Functions → Free Goods → Control Free Goods Pricing → Maintain Pricing Procedure for Pricing.
  2. Include Free Goods Condition Type:
    • Add the Free Goods Condition Type (e.g., ZNA0) to the relevant Pricing Procedure.
    • Assign the Requirement routine (e.g., 55 for Free Goods) and the Alternative Calculation Type (e.g., 28 for 100% discount).

Testing Inclusive Free Goods in Sales Orders

After configuration, it’s essential to test the setup:

  1. Create a Sales Order:
    • Use Transaction Code: VA01.
    • Enter the Sold-to Party and the Material with the free goods condition.
    • Input a quantity that meets or exceeds the Minimum Quantity specified in the condition record.
  2. Verify Free Goods Determination:
    • Upon entering the order quantity, the system should automatically adjust the Net Price to account for the free goods.
    • The Total Quantity delivered will include the free units, but the customer is billed only for the paid units.

Key Considerations

  • Calculation Rules: SAP offers different calculation rules to determine how free goods are applied. For Inclusive Free Goods, ensure the appropriate rule is selected to meet business requirements.
  • Pricing Impact: Inclusive Free Goods affect the unit price since the free items are included in the total order quantity. It’s crucial to verify that pricing reflects the intended discount.
  • Inventory Management: Ensure that the system accurately tracks inventory levels, accounting for both sold and free units.

Conclusion

Implementing Inclusive Free Goods in SAP allows businesses to offer promotions seamlessly, enhancing customer satisfaction and driving sales. By following the configuration steps outlined above, organizations can ensure that free goods are effectively managed within the sales process.