OEM claim settlement

Use this document to understand how an existing OEM claim is processed for settlement.

In this claim situation, a dealer submits a claim to an OEM, resulting to an agreed amount being reimbursed as a credit during settlement. The use of a claim type and claim category on 'Warranty Claim. Open' (MOS750/B), designed specifically for the OEM claim process, ensures that the claim is processed correctly with the correct direction of reimbursement.

Outcome

A claim MCO is created for an existing OEM claim and the dealer receives a credit reimbursement for the agreed claim amount.

Before you start

An OEM claim with valid lines must exist in (MOS750) and 'Warranty Claim Specification. Open' (MOS751).

You can link a charge ID with calculation method 6-'Calculation factor using gross price of all included materials' or 7-'Calculation factor using net price of all included materials' to a customer in 'Settings – Claim Settlements' (MOS755).

Follow these steps

Follow these steps to process and approve the claim:

  1. Start (MOS750/B).

  2. Select the claim number using the available sorting orders.

  3. On (MOS750/B), select option 11='Claim Lines'.

  4. Review and update the information on (MOS751/E). Editable fields, controlled by the variance settings on (MOS755/E) are 'Approved pct', 'Approved qty', 'Approved amount', and 'Remark'.

  5. To approve amount and quantity based on requested amount and quantity, select option 11='Approve Requested Amount'. To approve amount and quantity other than requested, use basic option 'Change' and update the approved fields as needed. Another method is to approve the claim lines using unit prices. On 'Claim Type. Open' (MOS740/E), activate 'Unit prc claim'. This opens up the 'Unit price' and 'Approved unit prc' fields while setting 'Requested amount' and 'Approved amount' to read only. Perform this activity for all the lines.

    To approve claim lines based on 'Approved total amount' or 'Approved amount per line type', select option 12='Approve Total Amount'. The option calculates the 'Approved amount' and updates the affected claim lines.

  6. Select related option 13='Ready' to update status from 20-'Open' to 30-'Ready'. If a charge ID is linked to the claim customer in (MOS755), a charge is automatically created in 'Warranty Claim. Connect Charge' (MOS757) based on approved material lines in (MOS751). Select related option 61='Charges' to start (MOS757).

  7. Select related option 20='Accept' to update status from 30-'Ready' to 60-'Accept'. At this step, a claim MCO is created as 'Ready for Invoicing' in 'Maintenance Customer Orders. Open' (COS100), and the message 'MCO XYZ has been created' is displayed. If the approved amount matches the requested amount exactly (100% settled), status on the warranty claim is set to 60-'Accept'. Otherwise, the status is set to 70-'Partially Accept'. Any connected charges in (MOS757) are moved to 'MCO. Connect Line Charge' (COS124).

    If an OEM does not fully settle the claim amounts, claim or invoice the unsettled amounts to the MCO customer or another payer. Select related option 55='Claim MCO to other payer' on (MOS750/K). Customer and agreement of the MCO are set by default, but you can change it when claiming to another payer. A new claim number and claim MCO are automatically created with claim specification lines containing the unsettled amount from the original claim.

    You can still make a settlement on claims with status 60-'Accepted' or 90-'Closed' by creating a new claim version. You must set the 'Allow new versn' parameter in (MOS740).

  8. Invoice the claim MCO using Print MCO Invoice. Connected claim and charge in (MOS750) and (MOS757) are set to status 90-'Closed'.

  9. The credit note associated with the OEM claim MCO is processed.

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