Handling workshop warranty claims
From Catalyst
Summary
This article explains the most common way to handle manufacturer warranty work through the workshop system.
More Information
The recommended process is
- Raise a workshop job for the warranty work and invoice it to a warranty customer account.
- Pay the warranty job off to a Warranty Control nominal centre.
- Post the warranty credit note onto the warranty company supplier account.
- Use the credit note against outstanding or future invoices from that supplier.
There may be some variations to this process, depending on manufacturer and your own processes, but the general principle will apply. Don't forget to place the claim with the manufacturer and get it authorised before you start.
- This article explains how to create a customer account for the warranty company- How do I create a warranty account?.
 | Note the advice on making sure it is exempt from VAT and is set up as an internal account to prevent the invoice being posted through your VAT return. The credit note you receive is in effect the Output Nett and VAT so you do not want to duplicate this. |
- This article explains how to create and process the warranty job. How do I create a workshop warranty job?.
| Note the section on producing the invoice as you may choose to wait for the claim to be approved and the credit received to ensure the invoice matches the claim. This can be done by amending the price of the parts and labour on the claim. Alternatively it can be achieved by adding non-moving codes for parts and labour and entering the difference between the items on the job and the settled claim. The disadvantage to this method is the revenue for the workshop department is not realised until the job is invoiced. |
- This article explains how to process the credit note from the warranty company. How do I deal with workshop warranty payments?.
See also
- Creating workshop jobs
- How do I create a warranty account?
- How do I create a workshop warranty job?
- How do I deal with workshop warranty payments?
