SAP SD Free of Charge Delivery (FD) process

SAP SD Free of Charge Delivery (FD), process is a key functionality that allows companies to foster good customer relations and handle special sales scenarios. This process is crucial for sending items such as promotional samples to customers without billing or for compensating customers in cases of order discrepancies.

Introduction to SD Free of Charge Delivery Process in SAP

The Free of Charge Delivery process in SAP SD is utilised when you need to deliver goods to a customer without an associated delivery cost. Whether you are providing complimentary samples or replacing goods due to previous issues, this delivery type ensures that the customer is not invoiced for the items. Creating a Free of Charge Delivery in SAP is a straightforward process, that ensures customers are not billed for returns or complimentary items.

Key Steps in the Free of Charge Delivery Process in SAP

1. Sales Order Creation: The process starts with the creation of a sales order using the transaction code meant for Free of Charge Delivery.
2. Automatic Delivery Document Generation: Upon order creation, the delivery document is automatically generated without the need for manual intervention.
3. Proforma Invoice Issuance: A proforma invoice may be provided for the customer’s records, detailing the goods sent but clarifying that it is not a request for payment.
4. Subsequent Free of Charge Delivery: In cases where a return is required, a subsequent Free of Charge Delivery can be processed, ensuring that the company’s ledger remains unaffected.

As shown above, Document pricing procedure is assigned as “C“, which means Free.

Creating a SD Free of Charge Delivery in SAP

When customers return goods due to damage, poor quality, or dissatisfaction, the Free of Charge Delivery process in SAP allows businesses to manage these returns efficiently. This process involves creating a non-billed sales order where the customer is not charged for the product or shipping. Here’s how to execute this process for sales order number.

Step 1: Accessing the Transaction

• Start by entering the transaction code VA01 in the SAP command field.
• Press Enter to proceed.

Alternatively,

• Navigate through the SAP Menu: Logistics → Sales and Distribution → Sales → Order → Create (VA01).

Step 2: Initialising the Sales Order

• Once in the transaction, you will need to input the following details:
  • Order Type: Select ‘Delivery Free of charge (FD)’.
  • Sales Organization: Choose the appropriate sales organization.
  • Distribution Channel: Select the distribution channel within the chosen sales organization.
  • Division: Choose the relevant division.

Step 3: Filling Order Details

• In the subsequent screen, input the following:
  • Sold-to-party: Enter the customer number who will receive the bill (if applicable).
  • Ship-to-party: Input the customer number where the goods will be shipped.
  • PO Number: If available, specify the Purchase Order number.
  • Req.deliv.date: State the required delivery date.
  • Order Reason: Indicate the reason as ‘free of delivery’ for the Free of Charge delivery.
  • Order Quantity: Specify or modify the quantity of the products as needed.

• Confirm the details by pressing Enter.

Step 4: Creating Outbound Deliver with Order Reference

Step 5: Post Goods Issue (PGI)

• Upon successful creation of the order, a message will appear in the status bar indicating that the Free of Charge Delivery has been created successfully.

Conclusion

The Free of Charge Delivery process is a reflection of SAP SD’s flexibility and depth, catering to nuanced business transactions and customer service requirements. By mastering this process, businesses can ensure they provide the highest service level, reinforcing customer loyalty and enhancing brand reputation.