Free product from Vendor

E1 9.2

I'm trying to determine the best way to handle this - the vendor is sending free product to the client as a concession. It's an item that they buy/sell all of the time. Since it's a concession, they don't want to record any cost on their end, but they don't know the best way to handle it.

I'll note that item uses standard cost for sales and last in for purchasing and they are different.

Should they receive the item at zero cost? If so, wouldn't there be a variance when they do the cost roll?

For some reason, I can't wrap my head around this one, so any input would be appreciated.