These terms are used interchangeably in general, but there is a difference between Free of Charge Items and Free of Goods Items. Let’s explore it the following SAP Training post.
The difference between the two is if the item is not-priced or if its priced at 100% discount. You can easily understand the difference when you create the following Order types.
1. SAP Free of Charge Order – SAP Order Type FD
When you create an SAP Sales Order of type FD, the SAP Sales Item Category that is determined is KLN. The Pricing field is ‘ ‘ – space for NO pricing. Hence you do NOT see any pricing in the sales orders line items corresponding to the item category KLN.
2. SAP Standard Order – SAP Order Type OR
In this case, when you set the item category to TANN either manually or via automatic item category determination, the pricing is still zero but there is a 100% discount on it ( SAP Pricing Condition type R100 ) automatically applied.
This is affected via the SAP Pricing Requirements as they’re configured in the SAP Pricing requirements. Whether an item is priced or not is determined by the SAP Pricing Requirement 02 and whether the discount R100 is applied or not is based on SAP Pricing Requirement 55.
As discussed already in SAP Pricing Training, they are set at the SAP Pricing Procedure level.
Example of SAP Pricing Requirement 55