Difference between revisions of "How do I create a warranty account?"

From Catalyst
Jump to: navigation, search
(Bulk update)
Line 3: Line 3:
  
 
== More Information ==
 
== More Information ==
−
* Go to {{Menu|{{SL}}|Customer File Maintenance|Add or Edit Customers"}}.
+
* Go to {{Menu|{{SL}}|Customer File Maintenance|Add or Edit Customers}}.
−
* At {{DataPrompt|Search on:}}, type the word {{DataValue|Warranty}} and press {{KeyPress|F6}} to [[Creating a new customer or supplier|create a new account]].
+
* At {{DataPrompt|Search on}}, type the word {{DataValue|Warranty}} and press {{KeyPress|F6}} to [[Creating a new customer or supplier|create a new account]].
  
 
=== Details ===
 
=== Details ===
Line 13: Line 13:
  
 
;{{DataPrompt|Centre Modifier}}
 
;{{DataPrompt|Centre Modifier}}
−
: Type {{DataValue|W}} and then press {{KeyPress|ENTER}}and then press {{KeyPress|ENTER}} on the warning message that is displayed.
+
: Type {{DataValue|W}} and press {{KeyPress|Enter}}. Press {{KeyPress|Enter}} on the warning message that is displayed.
  
−
;{{DataPrompt|V.A.T. rate:}}
+
;{{DataPrompt|V.A.T. rate}}
−
: Set to the Exempt Rate set for your system.
+
: Select {{DataValue|VAT Rate 3- Exempt}}.
  
−
;{{DataPrompt|Payment Centre:}}
+
;{{DataPrompt|Payment Centre}}
−
:At the {{DataPrompt|Payment Centre}}, press {{KeyPress|C-F1}} to bring up a search box, and then type {{DataValue|warranty}} and press {{KeyPress|ENTER}}. Select the one entitled "Warranty Control" which is usually {{DataValue|75001}}. If one doesn't exist, contact your Accounts Department and ask that they create one for you as a Balance Sheet - Asset/Liability centre.
+
:At the {{DataPrompt|Payment Centre}} enter {{DataValue|75001}}. This should be the {{DataValue|Warranty Control}} centre. If this centre doesn't exist, contact your Accounts Department and ask that they create this [[How do I create a nominal code?|Nominal Centre]] as a Balance Sheet - Asset/Liability centre.
  
−
;{{DataPrompt|Cash Sale:}}
+
;{{DataPrompt|Cash Sale}}
 
:You may choose to set this to {{DataValue|Yes}} to ensure warranty work is paid off to the warranty control account as soon as it has been invoiced. Alternatively you may choose to set this to {{DataValue|No}}. When you receive the warranty credit you should use {{SL}} Receipts to pay the invoice to warranty control. Any balance left e.g. due to the credit note being less than the amount claimed, should be paid off to a Profit & Loss - Warranty Loss/Gain Nominal Centre.
 
:You may choose to set this to {{DataValue|Yes}} to ensure warranty work is paid off to the warranty control account as soon as it has been invoiced. Alternatively you may choose to set this to {{DataValue|No}}. When you receive the warranty credit you should use {{SL}} Receipts to pay the invoice to warranty control. Any balance left e.g. due to the credit note being less than the amount claimed, should be paid off to a Profit & Loss - Warranty Loss/Gain Nominal Centre.
  
−
;{{DataPrompt|Internal:}}
+
;{{DataPrompt|Internal}}
 
:Set this to {{DataValue|Yes}} (Transactions to internal accounts are considered "Outside the Scope" for V.A.T. purposes and will not appear on your VAT100 report). You will account for the V.A.T. when you receive the credit note from your warranty supplier.
 
:Set this to {{DataValue|Yes}} (Transactions to internal accounts are considered "Outside the Scope" for V.A.T. purposes and will not appear on your VAT100 report). You will account for the V.A.T. when you receive the credit note from your warranty supplier.
  
Line 35: Line 35:
 
=== Stock ===
 
=== Stock ===
 
You may wish to charge all Stock sold to this Warranty Account at cost, if so:
 
You may wish to charge all Stock sold to this Warranty Account at cost, if so:
−
* From the account code press {{KeyPress|S-F10}}.
 
 
* Click the {{Button|Stock}} tab.
 
* Click the {{Button|Stock}} tab.
−
* Press {{KeyPress|S-F5}} - This brings up the Account Pricing Matrix.
+
* Click into the {{DataPrompt|Price code}} field.
 +
* Press {{KeyPress|S-F5}}.
 +
* If no matching items are found click {{Button|OK}}.
 +
* Click {{Button|Add}}.
 +
* Click the drop down alongside {{DataPrompt|Account}} and select {{DataValue|Group}} to set up pricing for all accounts in the {{DataValue|WAR}} account group (see previous section) or leave the field set to this account only.  
  
−
;{{DataPrompt|Pricing method:}}
+
{{Tip|text=It is recommended you apply pricing to a group of accounts rather than individual accounts. When adding a new account simply by assigning it to the same group will ensure the pricing structure is applied. This is a useful feature for Warranty and Internal accounts and makes applying future changes quicker and easier.}}
−
:Set this to {{DataValue|C}} for Cost.
 
  
−
;{{DataPrompt|Std. Average or Fifo:}}
+
* Enter {{DataValue|WAR}} as the {{DataPrompt|Account: Group}}.
−
:Enter {{DataValue|F}} for {{DataValue|Fifo}}.
+
* Click the drop down alongside {{DataPrompt|Stock}} and select {{DataValue|All}}.
 +
* Leave {{DataPrompt|Subgroup}} set to {{DataValue|None}}.
 +
* At {{DataPrompt|Description}} enter a suitable comment e.g. {{DataValue|Warranty Account at Cost}}.
 +
* Choose {{DataPrompt|Pricing method}} - {{DataValue|Cost price}}.
 +
* Then select the relevant method e.g. {{DataValue|First In First Out}}.  
  
−
* Press {{KeyPress|F2}} and then {{KeyPress|ENTER}} to accept.
+
{{Tip|text=FIFO is the most common method used.}}
−
* Press {{KeyPress|ESC}} to exit.
+
 
 +
* You would not usually enter a {{DataPrompt|Markup}} for warranty accounts.
 +
* Click {{Button|Done}} and {{Button|Accept}}.
 +
* Press {{KeyPress|Esc}} twice to return to the account set up.
  
 
=== Workshop ===
 
=== Workshop ===
Line 54: Line 63:
 
:Enter in the default Labour Rate for Warranty work for this account.
 
:Enter in the default Labour Rate for Warranty work for this account.
  
 +
Click {{Button|Done}} and {{Button|Accept}] to complete the warranty account creation.
 
== See also ==
 
== See also ==
 
* [[Creating workshop jobs]]
 
* [[Creating workshop jobs]]

Revision as of 09:48, 23 February 2021

Summary

The following article explains the preferred method for setting up a Warranty Account.

More Information

Details

  • Fill out all the relevant contact details for the warranty account.

Invoicing

  • Click the [Invoicing] tab.
"Centre Modifier"
Type 'W' and press <Enter>. Press <Enter> on the warning message that is displayed.
"V.A.T. rate"
Select 'VAT Rate 3- Exempt'.
"Payment Centre"
At the "Payment Centre" enter '75001'. This should be the 'Warranty Control' centre. If this centre doesn't exist, contact your Accounts Department and ask that they create this Nominal Centre as a Balance Sheet - Asset/Liability centre.
"Cash Sale"
You may choose to set this to 'Yes' to ensure warranty work is paid off to the warranty control account as soon as it has been invoiced. Alternatively you may choose to set this to 'No'. When you receive the warranty credit you should use Sales Ledger Receipts to pay the invoice to warranty control. Any balance left e.g. due to the credit note being less than the amount claimed, should be paid off to a Profit & Loss - Warranty Loss/Gain Nominal Centre.
"Internal"
Set this to 'Yes' (Transactions to internal accounts are considered "Outside the Scope" for V.A.T. purposes and will not appear on your VAT100 report). You will account for the V.A.T. when you receive the credit note from your warranty supplier.

Groups/Analysis

  • Click [Groups/Analysis] tab.
"Group:"
Type 'WAR'. Once again, this will aid you for reporting purposes.

Stock

You may wish to charge all Stock sold to this Warranty Account at cost, if so:

  • Click the [Stock] tab.
  • Click into the "Price code" field.
  • Press <Shift+F5>.
  • If no matching items are found click [OK].
  • Click [Add].
  • Click the drop down alongside "Account" and select 'Group' to set up pricing for all accounts in the 'WAR' account group (see previous section) or leave the field set to this account only.
It is recommended you apply pricing to a group of accounts rather than individual accounts. When adding a new account simply by assigning it to the same group will ensure the pricing structure is applied. This is a useful feature for Warranty and Internal accounts and makes applying future changes quicker and easier.
  • Enter 'WAR' as the "Account: Group".
  • Click the drop down alongside "Stock" and select 'All'.
  • Leave "Subgroup" set to 'None'.
  • At "Description" enter a suitable comment e.g. 'Warranty Account at Cost'.
  • Choose "Pricing method" - 'Cost price'.
  • Then select the relevant method e.g. 'First In First Out'.
FIFO is the most common method used.
  • You would not usually enter a "Markup" for warranty accounts.
  • Click [Done] and [Accept].
  • Press <Esc> twice to return to the account set up.

Workshop

  • Finally, click the <Workshop> tab.
"Labour Rate:"
Enter in the default Labour Rate for Warranty work for this account.

Click [Done] and {{Button|Accept}] to complete the warranty account creation.

See also


Feedback
Thank you for using our Knowledge Base, we value your feedback. Did you find this article useful? 'Yes' or 'No'
Keywords AND Misspellings
warranty, creating, accounts, creating warranty accounts
Retrieved from "https://www.catalyst-uk-support.com/kb/index.php?title=How_do_I_create_a_warranty_account%3F&oldid=42592"