What is free goods in SAP SD - Sales and Distribution?

SAP Term: free goods

• Component: SD

• Component Name: Sales and Distribution

• Description: An agreement with a business partner for a discount on goods in a given time period. Types of free goods are: Inclusive bonus quantity Exclusive bonus quantity Free goods are taken into account in the following areas: Purchase order Goods receipt Billing document Invoice verification

Smart SAP Assistant

• Key Concepts: 
  Free goods are products that are given away for free to customers as part of a sales transaction. This is usually done to incentivize customers to purchase more products or to reward them for their loyalty. In SAP Sales and Distribution (SD), free goods are defined as a special type of item category and are managed in the same way as regular items. 
  
  How to use it: 
  In SAP SD, free goods can be created by assigning the item category “F” to the item in the sales order. This will indicate that the item is a free good and will be given away for free. The quantity of the free good can also be specified in the sales order. 
  
  Tips & Tricks: 
  When creating a sales order with free goods, it is important to ensure that the quantity of the free good does not exceed the quantity of the regular item. This will prevent any discrepancies in inventory levels. 
  
  Related Information: 
  For more information on how to use free goods in SAP SD, please refer to the official SAP documentation here: https://help.sap.com/viewer/6b94445c94ae495c83a19646e7c3fd56/7.5.3/en-US/f8d2f9f8d2f9f8d2f9f8d2f9f8d2f9f8d2f9f8d2f9f8d2f9f8d2f9f8d2f9f8d2f9.html