Warranty
The Warranty Menu provides the functions to manage the warranties receivable system.
Menu 15.9 - Create/Maintain Warranty Items
Menu 15.10 - Update Warranty File With Receiving
Menu 15.11 - Update Warranty File With Vendor Credits
End of Day / End of Month Reports
Warranty Flowchart
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In order to ensure balance (GL to reports), the only items that can be run through the warranty are items that have been returned to the store that have been issued as a credit to the customer.
Widget
Avg. cost = $10
Sale Price = $12
Credit from Vendor = $25
¨ Step 1 is at the time the customer brings back the warranty item. A credit is issued and a sequence number is created and attached to the warranty item. The item is brought back in through a credit memo, but the on hand count is not updated since the part cannot be sold. The sequence number brings it into the warranty program. Once the credit memo has been issued and a sequence number assigned, no change should be made to the part in menu 15.9 - especially to the cost. It is dangerous to change the cost, especially if you are crossing months. Very likely it will throw out the detail to the summary and you won't balance.
¨ Step 2 is how the warranty items are updated at month-end. This step always happens even if a claim is created before month-end.
¨ Step 3 is creating the claim from the sequence number. Depending on how the vendor handles warranty items, you may get a replacement part or you may get a credit.
If you get a credit then you have to post the credit to the claim in 15.11 and voucher the credit as well
If a replacement is sent, then it is received in through the warranty menu 15.10 in the warehouse.
If a part is not brought into the warranty program through a credit memo, it has to go on a handwrite, it can not be put on a computer claim and run through the system.
Sometimes, we elect to hold off issuing credit to a customer until we receive credit from a vendor. It also has to be put on a handwrite otherwise you run the risk of throwing off the warranty balances. In this case, you may hold off posting the credit until credit has been issued to the customer and a claim created. You have to wait for day end to happen before you can create a claim so it usually isn't easier to do it that way.
(updated 06/02/09)
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