Processing Warranties

This topic will explain how to handle warranty parts and labor claims for suppliers and allows you to track the returns properly and still not affect your Vital Signs with negative gross profit postings.

Warranty Part

Put the part on the invoice for the warranty record. This can be either a received item or an item from inventory.
Right click on the material line item and select warranty. On fly-out menu choose part.
The part number, description, cost, core, and total charge (selling price) are brought forward from step 1.
Type in the amount to be paid by the customer.
Type in the amount to be paid by the supplier.
Choose the supplier from the drop down list.
Add any comments you wish to display on your printed warranty slip.
Post the invoice to the customer. The part is now in the warranty items bin awaiting return and credit from the supplier. Net effect on the vital signs is zero.

Warranty Prorated Time

Put the part on the invoice for the warranty record. This can be either a received item or an item from inventory.
Right click on the material line item and select warranty. On fly-out menu choose prorated time.
The part number, description, cost, core, MSRP, and total charge (selling price) are brought forward from step 1.
Type in the total warranty period, in months.
Select the date the item went into service.
The total time received and the percentage left in the warranty is automatically calculated. Select the date the item went out of service if different from today to recalculate the warranty usage.
The amount paid by the customer and supplier are automatically calculated based on steps 1 through 6.
Choose the supplier from the drop down list.
Add any comments you wish to display on your printed warranty slip.
Post the invoice to the customer. The part is now in the warranty items bin awaiting return and credit from the supplier. Net effect on the vital signs is zero.

Prorated Mileage

Put the part on the invoice for the warranty record. This can be either a received item or an item from inventory.
Right click on the material line item and select warranty. On fly-out menu choose prorated mileage.
The part number, description, cost, core, MSRP, and total charge (selling price) are brought forward from step 1.
Type in the total warranty period, in miles or kilometers.
Select the mileage the item went into service.
The mileage received and the percentage left in the warranty is automatically calculated. Enter the mileage the item went out of service if different from the current odometer reading to recalculate the warranty usage.
The amount paid by the customer and supplier are automatically calculated based on steps 1 through 6.
Choose the supplier from the drop down list.
Add any comments you wish to display on your printed warranty slip.
Post the invoice to the customer. The part is now in the warranty items bin awaiting return and credit from the supplier. Net effect on the vital signs is zero.

Prorated Tread Wear

Put the tire on the invoice for the warranty record. This can be either a received item or an item from inventory.
Right click on the material line item and select warranty. On fly-out menu choose prorated tread wear.
The part number, description, cost, core, MSRP, and total charge (selling price) are brought forward from step 1.
Type in the tread depth of the tire when new.
Type in the tread depth of the tire when it went out of service.
The wear percentage is automatically calculated.
The amount paid by the customer and supplier are automatically calculated based on steps 1 through 6.
Choose the supplier from the drop down list.
Add any comments you wish to display on your printed warranty slip.
Post the invoice to the customer. The part is now in the warranty items bin awaiting return and credit from the supplier. Net effect on the vital signs is zero.

Labor Warranty

Update the labor line as it normally would be sold.
Right click on the labor line item and then click on warranty.
Total Charge: The dollar amount to the labor line item.
To Be Paid By Customer: The dollar amount the customer will pay for the labor warranty.
To Be Paid By Supplier: The dollar amount that will be paid by your supplier.
Supplier: Choose a supplier from the drop down list.
Post the invoice to the customer. The labor is now in the warranty items bin awaiting return and credit from the supplier. Net effect on the vital signs is zero.

Tire Trade In

You would show a discount on the sale for the value of the trade. I.e. $400.00 sales, with a $200.00 trade in = $200.00 sale. The sale may go negative on the sale if the tires cost more than $200.00, but it is accurate. We are losing until we sell the trade in tires. The trades in tires go into inventory and at $0.00 cost. So when sold, will show 100% profit. When the tires are sold, we realize the profit.

Core Casings

Truck tires that are recapped and used again are bought as a core and casing. I.e. An 11.00R x 22.5 Rib Recap will be purchased as $150.00 cap and $50.00 casing. When put into inventory, the cap goes in as a recap tire for sale, the casing goes in as a casing. To sell them together, you create a service package listing both the cap and the casing on the lines.

When the cap and casing are sold, the old tire is taken in on trade against the casing, much like a core. However, the casing has to be inspected by the re-capper before the value is given. So you will send the old casings to the re-capper, who will inspect the casing and advise if any credit is applicable. Let’s say you sell a cap and casing at $200.00 for the cap and $75.00 for the casing. Then you take the old casing back, sends it to the re-capper, who inspects it and issues a credit for $50.00.

You can then create a credit invoice back to the customer for the casing. He can alter the credit amount, i.e. you sold the casing at $75.00 but the trade in case is only worth $50.00. He returns the part to the RGB, and then processes the credit from the supplier.

The same process is done if the cap and casing come from a supplier instead of inventory. 2 lines are put on the invoice, 1 for cap, 1 for casing.

Tracking Warranty: To track warranty you can run the material sales report and the service packages by technician report.