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Grant Free Goods in S4hana Process

1. Free goods are goods provided by a supplier at no additional charge based on agreed terms with the ordering party, such as providing 2% extra goods for orders over 1000 units. 2. In SAP S4 HANA, free goods are configured by defining a free goods schema, activating it for relevant business partners and materials, and creating free goods conditions, like 2% extra for orders over 1000 units. 3. When a purchase order meeting the free goods criteria is created, such as an order for 1000 units, the system will split the order into charged and free goods quantities automatically.

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589 views9 pages

Grant Free Goods in S4hana Process

1. Free goods are goods provided by a supplier at no additional charge based on agreed terms with the ordering party, such as providing 2% extra goods for orders over 1000 units. 2. In SAP S4 HANA, free goods are configured by defining a free goods schema, activating it for relevant business partners and materials, and creating free goods conditions, like 2% extra for orders over 1000 units. 3. When a purchase order meeting the free goods criteria is created, such as an order for 1000 units, the system will split the order into charged and free goods quantities automatically.

Uploaded by

Sona
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

Grant Free Goods in S4 HANA


Free Goods: This is an agreement/terms & conditions between supplier and ordering party
and the supplier will agree to supplier free goods are free of charge based on the ordered
quantity. That is only if the ordering party buys a target quantity of the material as terms &
conditions.
Example: As per terms & conditions, if an ordering party buys a 10000 EA of Bricks and then
the supplier will provide agreed % (Ex. 2%) of free goods on based 10000 EA.
Note: In this scenario system automatically calculate the free goods based on agreed
percentages.
➢ Configuration Steps.
IMG-MM-Purchasing-Discount in Kind-Define and assign discount in kind schema-
Determine free goods schema.

Assign free schema procedure to your supplier schema group which is a relevant pricing
procedure
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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

➢ Activate Grants Free Goods at Business Partner Via BP


BR Role – FLVN01 – Purchase Organization

➢ Activate Grants Free Goods at Material Master Via MM01


Purchasing View
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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

➢ Create Free Goods condition MBN1

Here It means, if I buy a minimum of 1000 EA then I will get 2% of free goods i.e., 2

➢ Create info record Via ME11

Purchasing info record 5300000588 7000 7010 created


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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

➢ Display Info-Record Via ME13

Click on Free Goods and check whether Free Goods condition exists or not
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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

➢ Create PO Via ME21N


Case -1

If we buy target quantity based on the agreement, then the system will split the quantity into
the charged and free.
For example, in the above, I am buying 1000 EA then the system will calculate 2% free
goods among 1000EA i.e., 2 EA

I.e., PO Charged Qty 998 x Unit Price Rs. 60 ===== Rs. 60000,
Note: Here system will consider the total ordered quantity X unit Price = Total Price
Standard PO created under the number 4500001014
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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

Case-2

Note : If I am buying less than the minimum order quantity 1000 then no free goods are
possible and see the above screenshot
➢ Goods Receipt Via MIGO
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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

See the accounting entries

The GR / IR account has calculated PO Qty 998 x Rs. 60 == Rs.59, 880.00 and for Free
Goods doesn’t
➢ See the PO History Via ME23N

➢ Check Material Document Via MB51


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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

➢ Invoice Via MIRO

After GST 18% Calculated

See the Invoice calculation


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Grant Free Goods in S4 HANA – M Jayababu (SAP MM & S4 HANA MM Consultant)

➢ Check the Po History Via ME23N

Look at here invoiced for 988 only.

Thank You
Name: M Jayababu (SAP MM & SAP S4 HANA MM CONSULTANT)

LinkedIn: https://www.linkedin.com/in/jayababu-muripindi-6a626861/

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