Supplier claim process

This functionality is specific for India.

You can register, review and process supplier claims. A claim can be based on documents such as invoices, service orders, purchase orders and even purchase schedules. The claim lines can be registered manually or copied from another document. After a claim is registered and submitted you can approve, reject or cancel the claim.

Register supplier claim

On the Claim Header you can specify whether the claim will be settled by a credit note (received from the supplier) or by an invoice (sent to the supplier), by selecting the required option in the Claim Invoice Procedure field in the Supplier Claim - Lines (tscmm2600m000) session.

You can specify whether the claim line should be settled by reimbursing costs (based on the approved amount on the claim line) or materials (based on item(s) and quantity specified on the claim line(s)). To do so select the Reimburse Materials or Reimburse Costs option in the Claim Method field on the Claim Line in Supplier Claim Lines (tscmm2110m000) session.

A supplier claim can be created:

  • Manually: You can specify the values of the claim header and the claim lines manually.
  • From customer claim: You can transfer a customer claim (line) to generate a supplier claim (line). For more information refer to Creating supplier claim request from customer claims.
  • From a purchase document: You can register a claim based on the documents such as invoices, service order, purchase order or a purchase schedule. The purchase document information is specified on the claim header in the Supplier Claim - Lines (tscmm2600m000) session. Alternatively, you can also copy the data from the purchase document using the Copy from Purchase Document option from the Actions menu.
  • From Service Order Line (Material, Labour or Other Cost): When you execute a service order, one or more cost lines can be the result of defective item(s) purchased from one or more suppliers. These lines can be selected and can be transferred to the Supplier Claim Requests (tscmm1114m000) session to generate the supplier claim. For more information refer to Creating supplier claim requests from service order cost lines/maintenance sales coverage lines
  • From Maintenance Sales Order Coverage Lines: When you execute a maintenance sales order, one or more cost lines can be the result of defective item(s) purchased from one or more suppliers. These lines can be selected and can be transferred to the Supplier Claim Requests (tscmm1114m000) session to generate the supplier claim. For more information refer to Creating supplier claim requests from service order cost lines/maintenance sales coverage lines
Note

You can register a supplier claim manually and based on purchase reference document. The header is created manually and the lines are copied from a purchase reference document.

Specify the tax details when Claim Method is Reimburse Costs.

  • Only VAT and Service Tax related details must be specified.
  • The Tax Code must be aggregate tax code.
  • Assessable value for VAT and Service Tax must be specified.
  • Registration Number Sequence(Own) and Registration Number Sequence(BP) must be specified in the Tax tab.
Submit supplier claim

You must submit the claim after registration. When the claim is submitted, the header-status of the claim is set to Pending Approval. The claim lines can now be Approved, Rejected, Modified, or Canceled.

Note

In some cases, the Line Status first becomes Pending Approval Estimates, or Pending Material Return before the status becomes Pending Approval.

Approve the estimates

When the claim is submitted and the Use Estimates field is checked in the Supplier Claim Lines (tscmm2110m000) session, an estimate line is created and the claim line status is updated to Pending Approval Estimates. It is mandatory to approve the estimates before you approve the claim. If the estimates are not approved, the Approved Quantity and Approved Amount in Supplier Claim Lines (tscmm2110m000) session cannot be modified.

Note

If this field is unchecked, the estimate line is deleted and the claim status is updated to Pending Approval.

Ship defective parts to supplier

If the material must be returned to the supplier before approving the claim, you must select the Return Material Required check box in the Supplier Claim Lines (tscmm2110m000) session and a supplier claim delivery line is created in the Supplier Claim Deliveries (tscmm2112m000) session. When the claim is submitted a warehouse order is created and the claim Line Status is updated to Pending Material Return. .

If the Receive RMA field is set to To be Received in the Supplier Claim Deliveries (tscmm2112m000) session, an RMA (return material authorization) document is printed. However, you must first receive the RMA before the items are shipped. Use the RMA Received option from the Action menu or the RMA Received button in the Supplier Claim Deliveries (tscmm2112m000) session or the Supplier Claim Lines (tscmm2110m000) session; to receive the RMA .

Action for Item - You can use the Action field (for approved material) and Action field (for rejected material) in the Supplier Claim Lines (tscmm2110m000) session to determine how the supplier must handle the returned defective material . The supplier can Keep and Take Ownership, Return to Customer or Scrap the item. When the defective item is returned by the supplier, a supplier claim receipt line is created.

The tax details as provided on the sales order must be provided on the Supplier Claim Deliveries (tscmm2112m000) session. When a warehouse order is created, all the tax details from claim deliveries must flow to the outbound warehouse order. If the transaction is excisable, GPD must be printed and register and must be updated.

Terminate the warehouse delivery line of the defective materials

When a warehouse order for a Supplier Claim Deliveries (tscmm2112m000) session is created, but not all the items can be delivered for some reason, the warehouse order for the remaining items can be terminated to be able to process the Supplier Claim without sending all the defective material.

Reimburse Item from Supplier

A warehouse order for a Supplier Claim Receipts (tscmm2113m000) is created. A warehouse receipt is created to receive the item in the warehouse.

The tax details as available on purchase order must be specified on the claim receipts. During receipts GPD approval, register updates and MAUC update must be performed as regular purchase order receipt.

Terminate a warehouse receipt line of the reimbursed materials

When a warehouse order for a Supplier Claim Receipts (tscmm2113m000) is created, but not all the items are received for some reason the warehouse order for the remaining items can be terminated to be able to process the Supplier Claim without receiving all the items.

Approve the claim

You can approve the claim header or individual claim lines. When a claim line is approved, the claim line status is set to Approved. If all the lines are processed (approved or rejected) , the header status is set to Approved. If one or more lines are rejected, the Partially Approved field is checked on the header in the Supplier Claims (tscmm2100m000) session.

If the Claim Method field is set to Reimburse Materials in the Supplier Claim Lines (tscmm2110m000) session, a warehouse order is created, to receive the replacement material from the supplier.

Note

Customer claim lines with Claim Method field set to Reimburse Materials can also be transferred to supplier claim (lines).

Based on the option selected for the Tagged To field in the Supplier Claim Lines (tscmm2110m000) session, the approved claim amounts are registered as claim revenue on the serialized item's supplier warranty, with the status Active, for the installation on the supplier claim header.

Send invoice

When the claim is approved and the Claim Invoice Procedure field is set to Invoice Based in the Supplier Claims (tscmm2100m000) session, an invoice must be sent to the supplier.

The billable lines must have the tax from the claim line.

Credit note

When the claim is approved and the Claim Invoice Procedure field is set to Credit Note Based in the Supplier Claims (tscmm2100m000) session, a credit note invoice must be received from the supplier. The credit note can be linked to the claim lines after the credit not is received in Accounts Payable.

The tax details as defined on the tax tab must be available in accounts payable. Only VAT and Service Tax related taxes must be allowed.

Claim line is settled

After the claim is approved, the claim line-status is updated to “settled” only when:

  • If the Claim Invoice Procedure is set to Credit Note Based and the Claim Method of the line is Reimburse Costs in Supplier Claim Lines (tscmm2110m000) session , then purchase credit note lines can be linked to the claim line using a ledger account with the supplier claim integration set. You can set the status of the claim line manually to Settled if at least one linked credit note line is present which has the Final Invoice checkbox selected in the Supplier Claim Invoice Lines (tscmm2115m000) session. Additionally, the related cost purchase credit notes must be finalized in the General Ledger and the related purchase credit notes related to orders must be approved in Accounts Payable
  • If the Claim Invoice Procedure field is set to Invoice Based in the Supplier Claim Invoice Lines (tscmm2115m000) session, SLI triggers the creation of the supplier claim invoice line in Supplier Claim Invoice Lines (tscmm2115m000) session and automatically set the status to Settled.
Supplier claim rejection

The user can register the rejection of the claim using the Reject Supplier Claim option on the claim line or claim header in the Supplier Claims (tscmm2100m000) session. The user have to specify a reason for rejecting the claim. The option is available to add extra information in the Rejection Text. If the Return Material Required checkbox is selected in Supplier Claim Lines (tscmm2110m000) session, a warehouse-delivery is created, to receive the claimed item back from the supplier.

Cancel supplier claim

You can cancel the claim but not the individual claim lines; the status of all the claim lines is set to Canceled.

You can cancel the claim only when the claim header Status is Modified or Pending Approval and no claim line exists with status set to Approved or Settled.

Close and delete supplier claim

A supplier claim is closed when:

  • The header-status of the supplier claim is Approved, Rejected or Canceled.
  • The line-status of all the supplier claim lines is Settled, Rejected or Canceled.
  • All the delivery and receipt lines of the supplier claim are final (no open orders exist for the supplier claim).
Note

When a supplier claim is closed the header-status of the supplier claim is set to Closed. When a supplier claim is closed the line-status of the supplier claim lines is not changed.

After a supplier claim is closed, the option is available to post the claim t to history but only when the claim parameter Use Claim History is selected in the Claim Management Parameters (tscmm0100m000) session.

Finally the option is available to delete the closed Supplier Claim(s) . When a Supplier Claim is deleted the supplier claim header and all its lines are deleted If parameter Use Claim History checkbox is selected in the Claim Management Parameters (tscmm0100m000) session, deleting can only be done after the claim has been posted to history. A supplier claim can only be deleted after all the financial reconciliation data is accepted.

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