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Free Goods Determination

Former Member
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Hello SAP Gurus

Can some one help me with Free goods detrmination configuratiion,

I want to configure free goods determination where free goods quantity should not be reflected in the invoice.How formula for free goods is configured.



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Answers (6)

Answers (6)

Active Contributor
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Hi Amit,


1.Run trans. VBN1 to first create master record for free goods as follows:

Enter following information in selection screen:

- Free goods type: NA00

- Sales org, distribution channel, customer # and execute.

Now in next screen create the record as follows:

- First select the exclusive button and verify that you are in exclusive view.

(that is if you want exclusive)

- Material#, Min qty - Say 34 cartons. (check in what units you want to manage)

From: 34 cartons

unit of measure:

Free goods: 12 Pcs

Unit of measure: Pcs

Calcualtion type: 1 or try the other options

Deliver control: Blank or any of the other options suitable to you.

Now save and exit.

Now run VA01 for 34 cartons and press enter. The system will automatically propose the free goods

item at no additional charge. Try higher order qtys and see if the free goods qty are scaling up.

If not adjust the calculation parameters in the master record screen

Award some points if useful...



Former Member
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<b>Free goods determination:</b>

IMG - sales & distribution - basic functions - free goods - condition technique for free goods -

1. Maintain condition table.

2. Create access sequence and assign condition table to access sequence

3. maintain free goods condition type and assign access sequence to condition type.

4. Maintain free goods determination procedure and assign the condition types to the procedure.

5. Assign the free goods determination procedure to the combination of Sales Area + DPP + CPP.

6. Maintain the free goods condition records using transaction code VBN1.

<b>Tyes of Free Goods in SAP:</b>

<b>1. Inclusive free goods -</b>

By one get one free. The total qty will be 2, you pay for 1 and get the other 1 for free. The main item and free goods item will be the same.

<b>2. Exclusive free goods -</b>

By 2 and get 1 free. The total qty will be 3, you pay for 2 & get the 3rd one for free. The main item and the free goods item are different.

Item Category:

The item category for the main item in the sales order will be TAN and for the free goods item it will be TANN. The item category TANN is not relevant for billing and hence the free goods items will not be shown in the billing document.

<b>Formula for free goods:</b>

Calculation type for determining free goods quantity

The calculation rule defines the manner in which the free goods amount is calculated from the free goods quantity, additional quantity and the document quantity.

The standard provides: ]


- unit-reference

- whole unit


Free goods quantity = 100 pieces

Additional quantity = 3 pieces

document quantity = 280 pieces:

<b>Free goods for proportional</b> = 8 pieces (= 280 / 100 * 3 rounded down)

<b>for unit-reference</b> = 6 pieces (= 200 / 100 * 3)

only 2 * free goods quantity considered

<b>for whole unit:</b> = 0 pieces

280 is not a multiple of 100

Reward points if solution helps.


Allabaqsh G. Patil

Former Member
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u can customize the free goods in easy steps. juz follow this steps below.

1. free goods determination is basically a condition technique. it will be given in two ways by the company .1. inclusive (91=10) 2.exclusive.(101=11).

2. define the condition type from NA00 and copy it as ZA00.

3. define the access sequence from NA00 and copy it as ZA00.

4. define the free goods determination procedure from NA0000 - ZA0000 and maintain ur condition type there in the column.

ex; step cntr condition type description.

10 0 ZA00 free goods type.

5. maintain these procedure to ur sales area.

ex: it should be like ur D.chDivDoc.Pri.Cus.Pricing. (here everything will be same as the regular pricing procedure except document pricing should be mentioned a C - denotes freegoods.

6. maintain condition records thru VBN1 - there u can see 2 options 1.inclusive 2. exclusive. maintain ur requirements and check in the sales order. it's very simple. juz read once this and u can customize urself .

reward points if it is useful.




Former Member
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Free goods –

Free goods play a large role in price negotiations with your customers. As a result, free goods are determined to be placed in sales document automatically. In retail, chemical industry or consumer goods industry, it is common to provide discounts in the form of free goods.

<b>Inclusive Bonus Quantities</b> – Free goods can be part of order quantity not included in the invoice (billing). This is called inclusive bonus quantity. The ordered goods and the free goods both involve the same material. The quantity units of the free goods and the ordered goods must be the same.


Exclusive Bonus Quantities</b> – Free goods that take the form of extra goods that are free of charge are called exclusive bonus quantities. In this case, the extra bonus quantities are not typically included in the invoice (billing). This can either be an additional quantity of the goods ordered or it can be another article. The exclusive free of goods appear in the SD document as an individual ‘free of charge’ item.

Both types of free goods are treated in the same way in the sales order. The material that has been ordered is entered as a main item (TAN) and the free item (TANN) is automatically displayed as a sub item. The item category determines how the item is controlled later in the business process.

The system re-reads the free goods master record in the sales order if the quantities in the main item change or if the pricing date changes. The system then deletes the sub items and re-creates them. Any manual changes to the free goods quantity are lost.

Note: If pricing is re-run in the sales order, it does not affect the free goods determination.

The condition technique is used for free goods. Free goods are generally regarded as a supplement to the pricing agreement for a material. You can define master records for free goods at any level such as material, customer/material, price list category/currency/material or customer hierarchy/material. The transaction code is VBN1 and condition type – NA00 which automatically gets converted into R100 during sales document processing.

You can restrict a free goods condition master record for one level in many ways –

a. Validity period: the condition is only valid within this period

b. Lowest quantity: the condition comes into affect when this quantity has been exceeded.

c. Delivery control:

d. Calculation type:

e. Scales

You can process different master data with the same key for inclusive and exclusive bonus quantities at the same time. You only need to press a button to switch between two types of discount. When you enter an exclusive bonus quantity, an extra entry line appears where you can enter the free material if it is not the same as the ordered material.

When you specify a calculation rule, you decide how the system determines the free goods quantity in the sales order from the additional and document quantities.

a. The free goods quantity is the quantity that is calculated from the discount quantity (not the minimum quantity)

b. Additional quantity is the quantity delivered free of charge

c. Document quantity is the quantity entered by the person creating the sales order.

Three calculation rules are provided by the system i.e.

Prorated – the system calculates the free goods in right proportion to document the quantity. For example – if 20 units are offered for free for 100 units in the condition record and the customer orders 162 units, then the system calculates 162 * 20/100 (rounded off) as free goods.

Related to units – 20 units are given for free for every 100 units ordered. In the above case the customer would only get 20 units free as he placed an order for 162 units.

Whole units – the customer would not get any free goods if he doesn’t match the exact quantity proposed. That is, in the above case, the customer doesn’t get any free goods as the ordered quantity did not match 100 units. Anything below or over the mark will not be qualified for a free good.

Calculation rules are stored in the system in the form of ABAP/4 code. You can also define your own rules by using transaction code VOFM (system modifications).

The free goods determination procedure contains a list of condition types for the free goods. One access sequence is assigned to each condition type and each access sequence contains one ore more accesses and each access contains exactly one table. This represents the search key that the system uses to search for valid condition records.

The free goods determination procedure is assigned to sales area + document pricing procedure + customer pricing procedure just as in the case of pricing procedure assignment as free goods are generally regarded as a supplement to the pricing agreement for a material.

If the search is successful, the system generates a sub item for free goods in the document. The item category is assigned with the item category usage FREE.

You can activate an analysis of the free goods determination in the sales document. The system then displays detailed information on how the free goods were determined.

Reward points if useful

Former Member
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<b>Free goods are 2 types</b>

Inclusive free goods: giving the same material as free of charge item is called inclusive

exclusive free goods: giving a different material is called exclusive

configuratio steps:

goto VBN1 and specify the free goods disount type as "NA00"

selct the required key combination. and enter the details like material, minimum quantity, from , Uom, are freee goods, calculation rule, free goods, and free goods delivery control.

free goods uses condition technique.


V/N2 maintain condition table

maintain access sequence








Former Member
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Free goods master data must be maintained before automatic free goods determination can be carried out. The condition technique is used for free goods in the same way as for pricing.

SPRO > SD > Basic Fns > Free Goods, there you'll find all settings to be done.


The free goods master data has the following features:

Free goods can be maintained as either inclusive or exclusive.

You can set the requirements governing when free goods are granted at as many levels as required, e.g. at customer/material level or customer hierarchy/material level. Just as in pricing, condition tables are used for this which you can enhance according to your own requirements.

You can specify a validity period for the free goods agreement.

You can specify a minimum quantity for which free goods is to be granted.

Stages can be defined with regards to the minimum quantities and their dependent free goods.

For exclusive free goods, you can define a material other than the material sold to be granted as free goods.

You can define different rules for determining the free goods quantity:

proportional (rule 1)

related to number of units (rule 2)

only for whole units (rule 3)

The free goods function has two forms, inclusive and exclusive.

When you are using the inclusive free goods function, the system creates two items after you enter the order quantity and release the data:

The first item with the order quantity less the free goods quantity

The second item as a free goods item with the free goods quantity

This solution has the following drawbacks:

Customer requirements are not obvious.

The function is not possible for structured materials.

The availability check runs independently.

The schedule lines are not correlated.

You cannot view full delivery of the required quantity.

Picking contains two independent items

The items are viewed independently in Warehouse Management.

Scale prices for the order quantity are only possible via group conditions

The document volume is increased.

The advantages of this solution are:

The free goods quantity can be viewed at order entry.

The free goods quantities can be used for statistical purposes.


In the free goods master record in the Free goods category field, select free goods category 3 (inclusive free goods without item generation).


In free goods master data maintenance, this new free goods type is dealt with in the same way as the inclusive free goods procedure described above.

In order processing, you can not create order sub-items.

For pricing in the main item, you need to create a discount. The standard system provides pricing procedure RVAA01 and condition type NRAB.

Condition type NRAV is set up as follows:

It does not determine a discount from a condition record. It uses condition basis formula 029 in the pricing procedure to determine a discount from the free goods factor.

The condition receives the new pricing requirement 059 in the pricing procedure. This requirement checks whether free goods have already been determined.

The condition type receives condition category f. This condition category ensures that the condition is redetermined every time the quantity is changed, since this can also mean a change to the free goods quantity.

Hope this will help you.

Reward points if so