Repairing Equipment Covered by Warranty

This document explains the process of managing warranties for maintenance on sold equipment.

When warranty conditions for the equipment are defined correctly, the processing of warranty entitlement checks related to maintenance work on equipment is completely automated.

Costs for maintenance work related to the equipment can be covered by the warranty in the following scenarios:

Outcome

An invoice is created for the customer and a warranty claim record is generated for the internal warranty department. The payment of the invoice is divided between the customer and the warranty department according to defined warranty conditions.

You can monitor costs and revenues related to a specific piece of equipment throughout its lifecycle using the M3 Equipment Profitability application.

The following tables are updated:

Before you start

Follow these steps

  1. Create Maintenance Customer Order and Work Request

    Create a maintenance customer order in (COS100/101). When the order line is created, a warranty entitlement check is made and a warning message is displayed if the equipment is covered by warranty. At this stage, when there are no details yet, only a general check is made to indicate that a warranty exists.

  2. Create Quotations

    You can create quotations during order entry from the maintenance customer order line in (COS107). If the requested work is based on a predefined service definition with material and labor requirements, you can create a quotation based on the service definition.

    In many cases the details are not defined until the work request or the work order is created and the detailed material and labor requirements are added.

    When the quotation is created a warranty entitlement check is made. The sales price on the quotation specification is updated with a price of zero and the line is marked as covered by warranty. Lines not covered by a warranty will be charged according to the customer's maintenance agreement.

  3. Add Labor, Material and Other Requirements on Work Request

    You can add or change the material and labor requirements in 'Work Request. Open Line' (MOS171). A warranty entitlement check is made and a message is displayed if the items or labor requirements are covered by a warranty.

  4. Add Labor, Material and Other Requirements to Work Order

    You can also add or change the material and labor requirements in 'Work Order. Open Lines' (MOS101). A warranty entitlement check is made and a message is displayed if the items or labor requirements are covered by a warranty.

  5. Invoice Specification Updated

    When the material is acquired and labor is reported on the work order, then the invoice specification is updated. The same applies to other costs and travel time reported on the work order.

    During the update of the invoice specification, a warranty entitlement check is made. If the transaction is covered by a warranty the following occurs:

    • The invoice specification is split among payers.
    • The sales price on the quotation specification is updated with a price of zero.
    • The order line is marked as covered by a warranty.
  6. Analyze Invoice Specification

    The invoice specification can be analyzed in order to check that all transactions should be approved for invoicing. The invoice suggestion of how the cost should be split is approved. But if the warranty does not fully cover the charges due to extreme wear of the item, a manual update of the invoice specification is needed.

  7. Create Warranty Claim

    When the invoice specification is checked and the maintenance customer order line is approved for invoicing, a warranty claim record can be created for each payer.

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