Improved GL distribution supports multiple warranty claim sales accounts
If you use the reconciliation method to process warranty claims in Service Management, you can now distribute warranty claim amounts to multiple General Ledger accounts that are associated with specific product categories, warehouses, and other entities. When a warranty claim is submitted from Service Management, the warranty claims amounts are distributed to the appropriate accounts based on values on the sales order in Distribution SX.e.
This new GL distribution method uses the existing AP Warranty Claim Adjustment and AP Control accounts and these new accounts:
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Unreconciled Warranty Due
The total amount to be paid by the vendor per warranty claim is posted to this balance sheet asset account. This account is specified on SA Operator Setup records.
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Warranty Claim Sales
The amount to be paid by the vendor per line item is posted to these income statement asset accounts. Specify the accounts on Product GL Distribution Setup records to associate them with product categories, warehouses, and other values. You can also specify a warranty claim sales account on SA Operator Setup records.
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Warranty Claim Variance
The sales tax amount to be paid be the vendor is posted to this income statement expense account. This account is specified on Vendor Setup and SA Operator Setup records.
When you submit a warranty claim in Service Management, transactions are created in GL Transaction Entry in Distribution SX.e. The Unreconciled Warranty Due is debited, and the Warranty Claim Sales accounts and the Warranty Claim Variance account are credited.
Account | Debit | Credit |
---|---|---|
Unreconciled Warranty Due | 127.41 | |
Warranty Claim Sales - Product Category 1 for Inventory | 30.00 | |
Warranty Claim Sales - Product Category 2 for Labor | 90.00 | |
Warranty Claim Variance | 7.41 |
When you reconcile a warranty claim in Service Management, a miscellaneous credit transaction is created in Vendor Invoice Center Entry. The AP Control liability account is debited, and the Unreconciled Warranty Due account is credited to reverse the initial debit. If an adjustment was made, then that amount is posted to the AP Warranty Claim Adjustment account.
Account | Debit | Credit |
---|---|---|
AP Control | 100.00 | |
Unreconciled Warranty Due | 127.41 | |
AP Warranty Claim Adjustment | 27.41 |
In addition to supporting multiple GL accounts, this enhancement supports divisional accounting that is based on the customer or ship to division number. During the warranty claims process, the division number from the original sales order header is used for all GL postings.
Feature activation
Select Enable Warranty Claim Reconciliation in SA Administrator Options-Integrations-Service Management, and then select Enable Warranty Claim Sales GL Postings. Set up new accounts in GL Account Setup as required, and then specify the GL accounts in Product GL Distribution Setup, Vendor Setup, and SA Operator Setup. In SA Operator Setup, assign the accounts to the record for the Inbound Message Service Operator who is specified in SA Administrator Options-Integrations-ION Interface Options. The accounts for the Inbound Message Service Operator are used if accounts are not specified on Product GL Distribution Setup and Vendor Setup records.