Managing Insurance Maintenance Customer Orders

This document describes how you manage maintenance customer orders (MCO) where an insurance company covers the cost for the job.

Note that this solution is intended for a business-to-business scenario in which an insurance company will cover the costs for a job, but the customer covers the VAT and any deductibles.

Outcome

The costs for the job are distributed between the customer and the insurance company.

The insurance company is invoiced for the costs of the job:

Labor and material
Miscellaneous costs reported

The customer is invoiced other costs:

VAT
Deductibles

Invoice amounts are based on the payer’s price list.

Settings

'Cost Type. Open Miscellaneous Costs' (COS160/E):

Deductibles must be defined as miscellaneous cost types in (COS160). Any deductible must be defined with the 'Insurance deduc' field selected. This setting causes the transaction to be invoiced to the customer.

'Maintenance Customer Orders. Open Line' (COS101/E):

Claim warranty - Claim warranty setting 7-'Insurance' triggers a re-calculation of the invoice specification. The setting is used in conjunction with the warranty type.

Warranty type - The warranty type is used to indicate the insurance company responsible for the claim.

'Maintenance Customer Orders. Open Line' (COS101/H):

The H panel in (COS101) enables you to track insurance company, claim ID, and insurance number.

How

When you set 'Claim warranty' to 7-'Insurance', the invoice specification is recalculated:

Time and material transactions, subcontract transactions, and regular miscellaneous transactions are moved to the insurance company payer.
The amount is recalculated based on the payer’s price lists.
A corresponding positive and negative transaction is added to the original payer, and the negative transaction has VAT code set to 0.
The VAT amount for these transactions remains with the customer, and the VAT code is set to 0 for the insurance company transactions.
Miscellaneous transactions that are defined as deductibles are added as a negative transaction on the insurance company, but remains as a positive transaction for the customer. Deductibles generate CO20165 accounting string.

Example

This table shows an example of a preliminary invoice specification before you split it:


Payer	Transaction nbr	Line type	VAT%	VAT	Item/Component/Work center (WC)	Sales price
Customer	1	1	25	250	WC 1	1000
	2	1	25	500	WC 2	2000
	3	2	25	250	Comp 38382	1000
	7	4	0	0	Age deduct	100
	8	4	0	0	Deductible	250
Total				1000		4350

This table shows an example of the same preliminary invoice specification, after the decision to split the invoice between the customer and the insurance company:


Payer	Transaction nbr	Line type	VAT%	VAT	Item/Component/Work center (WC)	Sales price
Customer	1	1	25	250	WC 1	1000
	2	1	25	500	WC 2	2000
	3	2	25	250	Comp 38382	1000
	4	1	0	0	WC 1	-1000
	5	1	0	0	WC 2	-2000
	6	2	0	0	Comp 38382	-1000
	7	4	0	0	Age deduct	100
	8	4	0	0	Deductible	250
Total				1000		1350
Insurance company
	1	1	0	0	WC 1	1000
	2	1	0	0	WC 2	2000
	3	2	0	0	Comp 38382	1000
	4	4	0	0	Age deduct	-100
	5	4	0	0	Deductible	-250
Total						3000

Labor and material transactions are moved to the insurance payer. A positive and a negative corresponding transaction is added to the customer, along with the VAT. VAT code is also set to 0 for the insurance payer, and there is a negative transaction for deductibles.