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Answer Posted / laxman
Two types of free goods exist in SAP. They are
1.Inclusive free goods.
2.Exclusive free goods.
Inclusive free goods agreement:
The customer pays only for a part of the goods required.
The rest of the goods are for free. This is called
inclusive free goods which mean that part of the purchased
quantity is designated as free and not billed. The unit of
measure for the inclusive free goods is same as the
purchased quantity.
e.g.:- of the ten bottles of wine ordered two are
designated as free goods. If we order ten bottles of wine
then ten bottles of wines are delivered to us as ordered
but we are billed only for the eight bottles and two
bottles are given as free. We have received inclusive free
goods.
Exclusive free goods agreement:
The customer pays for the goods ordered and receives some
additional goods. This is known as exclusive free goods and
means that free goods is granted for an additional quantity
to that in the purchase order. More is delivered than was
ordered and the additional quantity is not billed. The
goods delivered as free do not have to be the same as the
material ordered.
e.g.:- When four coffee machines are ordered, the vendor
supplies a packet of coffee as free goods. Therefore, if we
order four coffee machines, we receive a free packet of
coffee.
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