Manage free gift lines in sales documents without impacting the total order amount.                                                                                                                            

Module Description

This document will discuss the 'Free Gift' feature.

This feature allows you to indicate within sales documents whether one or more lines inserted in the order are free. In this way, the amount of the free line is reversed within the same document so as not to affect the calculation of the order amount.

Setup

Item Charges

The only setup required to be able to insert a free gift into a sales order is to create an item charge. Search the ribbon for “Item Charges”:

The list of charges created in the system will open. Create a new one like the ones highlighted where you indicate:

• Code (ES: FreeGi);
• Description;
• Gen. Prod. posting group and VAT Prod. posting group: If these categories are left blank, the lines will show the Item/Service Category and VAT Prod. Posting group of the free item line.
• Use for free gift: set the flag.
  

You can create many different charges of the free type to control the accounting account to write to (item/service category) or to control the VAT to apply (VAT Prod. posting group).

Functionality

Inserting a free gift in the sales line

After creating the sales order header with all the necessary information (customer, payment terms, transport terms, etc.), move on to inserting the document lines.

In the lines define the item requested/gifted to the customer with relative quantities and sales prices:

Then, set the “Free gift” flag on the order line(s):

Once the flag has been set, go to set in the document line which free charge type to insert in the order. Through this selection you can indicate the free gift to use, thus commanding the VAT to apply and the accounting account to feed for the free part.

The system will only show charges with the “Use for free gift” flag:

Once all the order lines have been created and the freebie flag has been indicated with the relative charge, “Release” the sales document. Upon release, the system will automatically create the charge lines connected to the single item line:

The charge line created by the system will be equal but opposite (negative quantity) in order to reverse the document value for the free gift lines.

NB: Returns can also be used if MasterData Workflow is applied on sales orders.

Free gift registration

When registering the order with a free gift, the system will also register the charge lines (based on the quantity to be shipped of the item and free gift lines indicated by the users).

With the registration of the shipment the system will download the warehouse of the quantities of the items sold.

In the invoice, you can take the item and charge lines together in order to zero out the amount of the free gift type lines. The selection of the item and charge lines in the invoice will be done with the usual methods (take shipping lines or cumulative invoicing), the user in the case of following the manual mode of selection of the lines will have to take both the charge and the item lines: