Period End Routines for Equipment Profitability Accruals and Funds

The purpose of this functionality is to efficiently manage warranty funds for standard warranties and extended warranties, and to have a stable flow of warranty costs during the warranty period.

Background

The functionality was created because it is difficult to keep track of the warranty fund. An amount is credited to the warranty fund when the equipment is sold. Then the warranty fund is consumed via claim maintenance orders. An extended warranty can be sold together with the equipment or at any time.

Limitations

To use this automated functionality, you must use a predefined accounting model that has model type 1 and create the model lines by using F14 in CAS391.

Only item numbers and serial numbers that were sold this period and amounts that were offset to the warranty fund will be included. This means that no calculation will be performed for previous periods.

Before you start

  • Select setting 290 'Accounting model is used' in CAS900.
  • Create an accounting model in CAS390 with model type 1, a predefined accounting model.
  • Update the column headings of the predefined accounting model dimensions in CAS390/E as follows:

    1. Item

    2. Serial no

    3. Origin ID

    4. Customer

    5. Agreement

    6. Order no

    7. Budget ID

    8. Life/Product group (depending on the setup of the model)

    9. Struct level

    10. Highest level

  • Set up the column templates in CA085 to be used in CAS340.

    For more details on CA085 setup, refer to NCR 4966.

  • Set up FAM-function CA70, which will be used when you update the voucher created in the warranty fund adjustments.

Follow these steps

  1. Open 'Warranty Fund Valuation. Open' (CAS150) and create a proposal for the warranty fund valuation. (Both standard and extended warranties will be included.)

  2. Enter the name of the round, the accounting model you want to use and the accounting period for which the valuation should be created.

  3. When the proposal is in status 00, you can check the result on the lines.

    Check the outcome in the printout or on the detail lines in 'Warranty Fund Valuation Lines. Open' (CAS155). To access the lines, select related option 11='Lines' from CAS150.

    To create a printout, select option 6='Print' or print specific records by selecting option 14='Print selection'.

  4. To update the proposal to the general ledger, select related option 9='Update GL'.

  5. To view the result in the Equipment Profitability Portal (EPP), open CAS340 and select the period, balance key 2, accounting model and column template. Line 80 will contain the standard warranty fund adjustments, and line 81 will contain the extended warranty fund adjustments.

Outcome

  • 'Analytical Acc Transactions. Display' (CAS095) is updated with the transactions that are the basis for the Equipment Profitability.
  • 'Analytical Acc Balance File. Display' (CAS090) is updated with the balances of the account entries in the Equipment Profitability.
  • 'Analytical Acc Aggregated Balance. Dsp' (CAS340) is updated with the aggregated balances of the account entries in the Equipment Profitability.
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