How do I create a warranty account?

Summary

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

More Information

• Go to "Accounts" -> "Sales Ledger" -> "Customer File Maintenance" -> "Add or Edit Customers".
• At "Search on:", type the word 'Warranty' and press <F6> to create a new account.

Details

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

Invoicing

• Click the [Invoicing] tab.

"Centre Modifier"

Type 'W' and then press <Enter>and then press <Enter> on the warning message that is displayed.

"V.A.T. rate:"

Set to the Exempt Rate set for your system.

"Payment Centre:"

At the "Payment Centre", press <Ctrl+F1> to bring up a search box, and then type 'warranty' and press <Enter>. Select the one entitled "Warranty Control". If one doesn't exist, contact your Accounts Department and ask that they create one for you.

"Cash Sale:"

Set this to 'No', so that when you invoice out to the Warranty Account from the Workshop, they will sit as a Debtor to show that you are owed a credit note or money by this warranty account.

"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:

• From the account code press <S+10>.
• Click the [Stock] tab.
• Press <S+F5> - This brings up the Account Pricing Matrix.

"Pricing method:"

Set this to 'C' for Cost.

"Std. Average or Fifo:"

Enter 'F' for 'Fifo'.

• Press <F2> and then <Enter> to accept.
• Press <Esc> to exit.

Workshop

• Finally, click the <Workshop> tab.

"Labour Rate:"

Enter in the default Labour Rate for Warranty work for this account.

See also

• Creating Workshop Jobs
• How do I Create an Internal Account?
• How do I add Parts to a Workshop Job?
• How do I Invoice a Workshop Job
• How do I Credit a Workshop Invoice?
• How do I Create a Workshop Warranty Job?

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Keywords AND Misspellings

warranty, Creating, accounts, Creating warranty accounts