Warranty Work Order - 100% Settled

This document explains the process of managing warranties for maintenance on sold equipment from maintenance customer order to claim settlement.

The process is used when a repair is done on an equipment under warranty. When warranty conditions for the equipment are defined correctly, the processing of the warranty entitlement checks are completely automated. The warranty claim process is supported by the claim transaction. Claim transactions from the warranty covered invoice specification lines are based on the equipment warranty conditions.

The key to the process is the warranty entitlement setup in 'Equipment. Open Warranty Details' (MOS393) that determines the warranty claim content and entitlements. The settings identify what conditions are included or excluded for warranty when performing transactions for labor, materials, subcontract and miscellaneous line types. The scenario uses warranty entitlement checks covering all types of labor transactions and excludes warranty entitlement checks for all types of material transactions. The same conditions are also setup for the claim entitlement checks when performing the warranty claim process and warranty claim settlement.

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. The warranty claim record is processed for invoicing to the claim payer based on the equipment warranty conditions.

In 'Maint CO. Check Preliminary Invoice Spec' (COS170), all labor transactions will be charged to the internal warranty payer and all material transactions will be charged to the customer, mainly due to the warranty entitlements in 'Equipment. Open Warranty Details' (MOS393). The warranty claim record is processed for invoicing based on the claim content agreement and payer in (MOS393).

Before you start

For information about prerequisite settings, refer to these documents and apply the configuration recommendations provided:

  1. See Create Maintenance Customer Order Type.

    • Select an order type with 'Next manual function' = '5-Start Work Order'.
    • In (COS010/F), set 'Auto crt claim' = '0 (NO)'.
    • Set 'Wty auto reset' = '1' in (COS010/F) and 'Wty appr limit' greater than expected warranty invoice amount.
  2. See Selling Equipment Covered by Warranty.

    In (MOS390/E):

    1. Warranty date should be greater than current date.

    2. Structure type should be blank.

    3. Service should be blank.

    4. Status should be '20-Definite'.

  3. See Define Work Order Type.

    In (MOS120/E):

    1. Set parameter 096 'Mandatory Service Error Report' to '1-Mandatory if warranty'.

    2. Set parameter 100 'Should maintenance object update material plan' to '0-No'.

    3. Set parameter 380 'Mandatory approval of time transactions' to '0-Not mandatory'.

    4. Set parameter 390 'Employee mandatory when reporting operation' = '0 (NO)'.

  4. In (MOS301/E), set 'Auto approval' to '1=Yes'. See Define Basic Settings for Services.

  5. See Define Operations and Material Consumption for a Service.

    1. Create one operation and one material for the service.

    2. Specify 'Issue method' = '1-Picking list' for the material.

Follow these steps

  1. See Quick Entry of Normal Maintenance Customer Order.

    The instruction is based on panel sequence=1 in 'Maint CO. Quick Entry' (COS130/P).

    1. Create a maintenance customer order in (COS130).

    2. Populate the 'customer', 'product', 'lot number', 'service', and 'agreement'.

    3. The 'customer' and 'agreement' should be different from the 'warranty' and 'claim content' values in Equipment. Open Warranty Details' (MOS393).

    4. A warranty warning message is issued, 'Warning – Manufacturer warranty found for serialized item'.

    5. A maintenance customer header and line are created.

    6. A work order is created in 'Work Order. Open' (MOS100), ready for work reporting.

      Use 'Report Single Timesheet Transaction' (MOS077) to report labor run time. Tick 'Man compl flag' and set 'Quantity' to '1'.

  2. See Issue Materials Against a Work Order.

  3. Report an operation. See Report Operation or Report Operation with Employee Information.

  4. Create a Service Error Report.

  5. Close a work order manually. See Manually Close Work Order.

  6. Review and adjust a preliminary invoice specification. See Check and Adjust Preliminary Invoice Specification.

  7. Create a warranty claim. See Warranty Claim Creation from Maintenance Customer Order Line.

  8. Print an MCO invoice. See Print MCO Invoice.

  9. Process the claim.

    See Warranty Claim Processing.

    See Warranty Claim Settlement.

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