Free Goods Processing

The process starts with the creation of a customer standard sales order using a material for which a free goods condition record is maintained. Depending of the ordered quantities, customers receive free goods.

After the completion of picking, the shipping specialist relieves the inventory. This inventory relief is the actual recording of the physical quantity that is being shipped to the customer.

With the goods issue posting revenue is recognized and cost of goods sold is recorded in Financial Accounting.

Once goods are delivered, you can invoice the delivery.

For details on bundling functionalities for IFRS 15, see note 2524569.

Key Process Steps Covered

  • Create sales order
  • Print order confirmation
  • Create delivery
  • Execute picking
  • Post goods issue
  • Create billing document

Benefits

  • Perform availability check upon order entry
  • Determine shipping point automatically
  • Determine inclusive free goods automatically
  • Create a billing document
  • Make postings to FI and CO