Financial Reconciliation of Warranty Claim

This document explains how to complete the financial reconciliation that originates from a warranty claim.

Outcome

The internal cost is charged to the warranty fund. The external cost is invoiced and sent to the supplier. The supplier may then send back a credit invoice.

Uses

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

How the system is affected

These tables are updated:

MILOSW – Equipment warranty

MILOTW – Equipment warranty details

ACUORH – Maintenance customer order details

ACUORL – Maintenance customer order line

ACUORM – Maintenance customer order payer

ACUINV – Invoice specification

ACLHED – Claim header

ACLVER – Claim version

ACLSPC – Claim specification

Before you start

  • A warranty record for individual equipment must be created, that is equipment sold in 'Customer Order. Open' (OIS100) or manually created in (MOS394).
  • A warranty record must exist in 'Equipment. Connect Warranty' (MOS390).

Follow these steps

  1. Analyze Maintenance Customer Order

    Warranty details and claim details provide an input to analyze how to split the cost for the warranty. You can retrieve warranty records by specifying the item serial number. Transactions are created in 'Maint CO. Connect Payers' (COS117).

  2. Invoicing

    After analyzing how the costs should be distributed, the invoice is approved in 'CO Invoice. Print' (OIS180). Sometimes a manual update of the invoice costs is required, for example if the warranty does not fully cover the charges due to wear of the equipment.

    Three invoicing scenarios may happen:

    • No warranty claim. A customer invoice is created and the invoice is paid by the customer.
    • The warranty conditions indicate an internal payer for certain costs. An internal invoice is created for an internal claim from the warranty fund.
    • For warranty costs with a supplier as a claim payer, an internal invoice is sent to the warranty department. The warranty department will then process further claim requirements on the supplier.

  3. Warranty Claim

    The internal claim (the cost that will not be covered by the supplier) is recorded and charged to the internal warranty fund.

    The external claim towards the supplier is negotiated. When the claim is approved, an external invoice is sent to the supplier.

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