free goods
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Rao Yalagala [email protected]
Free goods•In many industry sectors it is common in the sales of certain goods for other goods to be supplied in addition for free, or, indeed, to supply the customer with a portion of the goods for free.
Rao Yalagala [email protected]
Free goods types1. Manual Through higher level item 2 . Automatic• Inclusive bonus quantity (Inclusive free goods) • Exclusive bonus quantity free goods(Exclusive free goods)
Rao Yalagala [email protected]
Inclusive bonus quantity• The customer only pays for some of the goods requested. The rest of the goods are free of charge. The inclusive bonus quantity is also called inclusive free goods and means that a proportion of the order quantity is granted as free goods, i.e. is not paid for.• The materials delivered as free goods also match the ordered material in terms of the unit of measure
Rao Yalagala [email protected]
Inclusive bonus quantityExample•Two out of ten bottles of sparkling wine are free goods. Therefore, if you order 10 bottles, 10 will be delivered and you will not be charged for 2 of them. So in this case, you have ordered an inclusive bonus quantity.
Rao Yalagala [email protected]
Exclusive bonus quantity•The customer pays for the goods ordered and is given extra goods free of charge. The exclusive bonus quantity is also called exclusive free goods and means that in addition to the purchase order, a certain quantity of materials are guaranteed as free goods. In other words, a larger quantity is delivered than is ordered, whereby no charge is made for the additional quantity delivered.•The materials delivered as free goods do not necessarily have to be the same as the materials orders.
Rao Yalagala [email protected]
Exclusive bonus quantityExample
If the customer buys 4 coffee machines, the vendor provides a packet of coffee as free goods. So if you order 4 coffee machines, a packet of coffee is delivered too, but you are not charged for it.
Rao Yalagala [email protected]
Free goods constrains•Free goods can only be supported on a 1:1 ratio. This means that an order item can lead to a free goods item. Agreements in the following form are not supported: ‘With material 1, material 2 and material 3 are free of charge‘ or ‘If material 1 and material 2 are ordered at the same time, then material 3 is free of charge‘.•Free goods are not supported in combinations with material structures (for example, product selection, BOM, variants with BOM explosion).•Free goods are only supported for sales orders with document category C (for example, not quotations).•Free goods are not supported for deliveries without reference to a sales order.•Free goods cannot be used in make-to-order production, third-party order processing and scheduling agreements.
