How Free Goods Are Configured in SAP SD

Introduction: What Does "Free Goods" Mean in SAP SD?

Here’s the thing—if you’re in the world of SAP Sales and Distribution (SD), you’ve likely come across scenarios where companies offer free goods as part of a sales promotion. Maybe it's a classic “Buy 10, Get 1 Free” deal, or something more complex involving different materials.

But how exactly do you set this up in SAP? That’s what we’re diving into today.

Free goods configuration in SAP is powered by the condition technique—the same clever framework behind pricing, discounts, and taxes. Whether you're offering inclusive (part of the order) or exclusive (additional to the order) freebies, SAP gives you granular control.

Types of Free Goods in SAP: Inclusive vs Exclusive

Inclusive Free Goods (e.g., Buy 10, Pay for 9)

  • Quantity is included in the original order.
  • No separate item is created.
  • The unit price is adjusted proportionally.

Exclusive Free Goods (e.g., Buy 10, Get 1 Extra)

  • Free item is added as a separate line item in the sales order.
  • Has zero pricing value.
  • Can be the same or a different material.

Configuring Free Goods: Step-by-Step Breakdown

1. Set Up Condition Records (VBN1)

Let’s start with the basics. Navigate to:

Logistics → Sales and Distribution → Master Data → Conditions → Free Goods → VBN1 - Create

For Inclusive Free Goods:

  • Enter Discount Type: NA00
  • Choose Key Combination: (like customer/material or material only)
Define:
  • Material: Which product gets the freebie.
  • Min. Quantity: Minimum ordered quantity to trigger the free goods.
  • From Quantity: Starting quantity for free items.
  • Unit of Measure: Consistent with the material master.
  • Are Free Goods: Number of free units.
  • Calculation Rule: Determines how SAP calculates the bonus quantity.
  • Free Goods Type: Set to Inclusive.
  • Delivery Control: Choose if free goods are delivered along with or independently from the main item.
Save your condition record when done.

For Exclusive Free Goods:

  • Still use VBN1, but:
  • Click the Exclusive button.
  • Define similar values as above.
Additionally, set:
  • Additional Free Goods: Mirrors “Are Free Goods” field.
  • Additional Material: If offering a different material for free.
  • Free Goods Type: Set to Exclusive.

Examples: What Does It Look Like in Action?

Here’s where the rubber meets the road:
  • Inclusive Example: You enter 10 units of Material A. The customer pays for 9, but SAP shows 10 on the delivery note. Smart pricing takes care of the value.
  • Exclusive Example: Customer orders 10 units of Material B. SAP adds 1 more as a separate free-of-charge item, with price set to zero.
It’s as easy (and powerful) as that.

Behind the Scenes: Condition Technique Setup

SPRO Navigation:

SPRO → Sales and Distribution → Basic Functions → Free Goods Determination

2. Create Condition Tables

  • Define the fields (e.g., customer/material/sales org) to determine when free goods apply.

3. Build Access Sequence

  • Link your custom condition tables here.
  • SAP checks access sequences from most specific to most general.

4. Define Condition Type (e.g., NA00)

  • Use New Entries, assign the access sequence, and activate relevant flags.

5. Integrate into Pricing Procedure

  • Insert condition type R100 (to ensure free item has a price = 0).
  • Check if your main pricing procedure includes this type.

6. Assign Free Goods Procedure to Sales Area

  • Combination of:
  • Sales Area
  • Document Pricing Procedure
  • Customer Pricing Procedure
Without this step, your configuration won’t work in transactions. Trust me, many consultants forget this and spend hours debugging.

Tips, Gotchas, and Real-Life Insights

✔ Tip 1: Use Simulation First

Always test in a sandbox client before going live. Use VA01 to simulate different order scenarios.

❗ Gotcha: UoM Mismatch

Ensure your Unit of Measure (UoM) in the free goods record matches the material master UoM. Otherwise, the system throws an error.

✔ Tip 2: Don’t Forget Delivery Controls

Want free goods to ship only when the main item does? Set delivery control = dependent.

Goto:
SAP SD Pricing

Goto:
Billing / Shipping

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SAP SD (Sales and Distribution) Configuration Hints and Tips

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SAP ABAP/4 Programming, Basis Administration, Configuration Hints and Tips

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