Managing FOC Items in Order Management

Summary:

Customer is into distribution business and issues Items as FOC (Free of Charge) based on the Customer and/or nature/volume of business. For example, if there is a Sales Order for an Item 'TEST1' for 1000 quantities, then the customer can issue another 100 quantities of 'TEST1' as FOC. Since the 100 quantities are FOC, the List Price on them should be zero however Tax must be calculated and invoiced. Below example for reference

Sales Order Number: SO1234

Item Name: TEST1

Item Quantity: 1000

FOC Quantity: 100

Unit Price of Item: $10

Total List Price: $10,000 (1000 qty * $10)

Total Tax: $550 → Total Quantity = 1100, Unit Price = $10, Tax% = 5% i.e ((1100 qty * $10)*5/100)