Free goods calculation formulas can be used to define the way in which free goods quantities are computed within a free goods agreement. The formula is assigned to a free goods condition record. When looking at the code for the standard delivered free goods calculation formulas or when writing your own, work area L_FRM is filled with the calculated values.
Following is a description of the free goods calculation rules delivered in the standard system.
CALCULATION RULE – FREE GOODS 1: PROPORTIONAL
Formula '1' interprets the free goods quantities as a proportional agreement.
Example:
A company offers free goods to their customers when they order certain materials. For example, when a customer orders 100 cases of Material A, the customer receives an additional 20 cases of Material A for free. The company would like to have the system treat the 'Buy 100, Get 20 Free' agreement proportionately. For example, if the customer orders 162 cases, the system should automatically grant 32 for free [162 x (20/100)]. To accomplish this, the user would assign free goods calculation rule '1' to the free goods condition record.
CALCULATION RULE – FREE GOODS 2: UNIT REFERENCE
Formula '2' interprets the free goods quantities as being related to number of units.
Example:
A company offers free goods to their customers when they order certain materials. For example, when a customer orders 100 cases of Material A, the customer receives an additional 20 cases of Material A for free. The company would like to have the system interpret the 'Buy 100, Get 20 Free' agreement by granting 20 free for every full 100 purchased. For example, if the customer orders 162 cases, the system should automatically grant 20 for free [100 x (20/100)]. To accomplish this, the user would assign free goods calculation rule '2' to the free goods condition record.
CALCULATION RULE – FREE GOODS 3: WHOLE UNITS
Formula '3' grants to free goods only if whole units are ordered.
Example:
A company offers free goods to their customers when they order certain materials. For example, when a customer orders 100 cases of Material A, the customer receives an additional 20 cases of Material A for free. The company would like to have the system apply the 'Buy 100, Get 20 Free' agreement only if the customer orders in increments of 100. For example, if the customer orders 162 cases, the system should grant 0 for free since 162 is not a multiple of 100. To accomplish this, the user would assign free goods calculation rule '3' to the free goods condition record.
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