Keeping track of warranties given to a customer for a sold parts (customer warranty) is important to ensure that a customer is given the service he is entitled to when a part fails. Keeping track of warranty given to you from a supplier for a purchased part (supplier warranty) is also important in order to ensure that you are given the service you are entitled to when a part you purchased has failed.
Warranty is tracked for serialized parts only.
In order to track the warranty from point of purchase you can enter supplier warranty information on the part in the following pages: Part, Inventory Part and Supplier for Purchase Part. You can also enter supplier warranty information directly on the purchase order line.
When entering the warranty information you can specify the conditions such how long the warranty will be valid for, or if the warranty is valid for a maximum of used hours, or kilometers etc. You can also define what types of costs are covered under the warranty such as material, personnel, external, expense, and fixed price. If the part you are purchasing is going to be sold to a customer, you may want to specify that the supplier warranty's valid from date should be based on when the part is delivered on a customer order. You can also specify that the supplier warranty should establish a customer warranty automatically, with the same conditions as the supplier warranty. (To simplify the process of defining warranty for parts you can use warranty templates.)
When the purchased order is received and the part is placed into inventory you will be able to view the warranty information in Part Serial. If the purchased part is turned into an equipment object (by issuing it on a work order and placing it into the equipment structure) the supplier warranty will also be visible from, and valid for, the serial object. Warranty information can also be entered directly on an equipment object.
If an equipment object (with supplier warranty) breaks and you wish to process a warranty claim to your supplier to charge him for any expense you have had with repairing the part, you can enter a work order. Supplier warranty can be activated on work order by using Supplier Warranty option in Warranty button. The customer on the work order should be the supplier (which requires that the supplier is also established as a customer, with the same identity). Time, material and other expenses are reported the same way as on regular, separate work orders.
As a result of the supplier warranty being activated on the work order, additional posting lines are created automatically, if the type of expenses you report on the work order are covered under the warranty. (The reason for the 'double' posting line is that you also should have the option to invoice a customer for the same expenses). Since the expenses covered under warranty will be transferred to a customer order for invoicing, you need to make sure that an appropriate sales part is added to the posting lines. Note: The price on these posting lines will be the same as your internal cost. When the work order is reported, the postings need to be authorized. Thereafter the work order can be transferred to a customer order, and the customer order can be processed to invoicing.
In order to track the warranty from the moment the part is sold, you can enter customer warranty information in the following pages: Part, Inventory Part and Sales Part. You can also enter customer warranty information directly on the customer order line.
When entering the warranty information you can specify the conditions such as how long the warranty will be valid for, or if the warranty is valid for a maximum of used hours, or kilometers etc. You can also define what types of costs are covered under the warranty such as material, personnel, external, expense, and fixed price. (To simplify the process of defining warranty for parts you can use warranty templates.)
When the sales part is delivered you will be able to view the warranty information in a Part Serial. If the sales part created an SM object (Service Management object) when the customer order was delivered, you will also be able to view the warranty information directly from the equipment object. Warranty information can also be entered directly on an equipment object.
If the sold equipment object breaks and you need to repair the part you can enter a service request or a work order. A customer warranty type needs to be activated, which can be done using Customer Warranty option in Warranty button on work order. Time, material and other expenses are reported the same way as on regular, separate work orders.
As a result of the customer warranty being activated on the work order, the posting lines that are covered under warranty (defined on the warranty type) will by default be set to Keep revenue = No. This will ensure that the customer is not invoiced for expenses that are covered under warranty. Reported expenses that are not covered under warranty will be set to Keep revenue = Yes, and will therefore by default be invoiced. All posting lines need to be authorized. Thereafter the work order can be transferred to a customer order. If all posting lines transferred to the customer order have a 0 price, no invoice will be created.
If a sold equipment object breaks, and you need to both process a supplier claim, and handle the repair for a customer, this can be done on the same work order. Both supplier warranty and customer warranty can be activated on the same work order, and the work order can be invoiced to the supplier as well as the customer.
When reporting expenses that are covered under supplier warranty, additional posting lines will be created. The purpose of these posting lines is that you can invoice the supplier, at the same time as you invoice the customer. When transferring the work order postings to a customer order, two customer orders will automatically be created; one for the customer and one for the supplier.
In Service Management, customer warranties are used on requests to ensure that a customer is given the service he is entitled to when a Service Object has problems.
Supplier warranties will ensure that the entitlements of the service-providing company owed by the suppliers, dealers, insurance companies, etc., who provide a warranty, are handled on the request.
Setting up Warranties
The warranty setup for service management is supported on the Customer/SupplierWarranty Types on Parts, Customer/Supplier Warranty Types on Part Serial, and Customer/Supplier Warranty Type Templates by enabling the ‘Use in Service’ configuration, allowing the same warranties to be used in both Service and Asset features. The ‘Price Rule’ should be defined based on the Use in Service enabled warranty types/templates to handle the pricing on the service management flows for both supplier and customer warranties. The Customer warranties allow connecting an SLA Template to enforce any SLAs applicable on the request when the customer warranty is applied.
These ‘Use in Service’ Warranty types on Parts are supported through the purchase order customer order flows described under the ‘Customer Warranty’ and ‘Supplier Warranty’ sections above on this page. When a warranty is created on an Equipment Object, it will be accessible and useable on the Service Object and requests if ‘Use in Service’ is enabled. Defining Customer and Supplier Warranties on the Service Object directly or through a Model is also possible. When an SLA Template is connected to a Customer Warranty Type on a Service Object, the SLA Template Revision that is ‘Current’ at the point of connection to the object will be saved on the object warranty, and this will be the SLA template revision that will be used on all the request scope when this customer warranty is applied.
On Model and Service Object, a TestPoint-Parameter combination defined on the Model/Service Object can be connected on a usage-based warranty condition (a warranty condition that has an ‘Other UOM’ instead of the Duration UOM.) in order to set it up to automatically expire when the meter reading for the selected parameter exceeds the limits defined on the warranty condition. The Model-level definition only works as a template for Service objects, while the expirations happen on the service object warranties.
Warranty on Request
Supplier and Customer Warranty Types must be Active and Within the Validity Period on the Service Object to be eligible for use on a request scope. Further, The supplier warranties must have a supplier registered as a customer. A request scope can have one customer warranty and multiple supplier warranties, whereas no two supplier warranties are from the same supplier.
When a customer warranty is applied, the Price rule connected to the Customer Warranty will be applied as the request scope Price Rule, and pricing for all sales lines against the Customer will be handled according to it. If an SLA template is connected to the customer warranty type, the SLA commitments will be created accordingly.
As a result of supplier warranties being connected to the request scope, if the reported costs on request scope work tasks are covered under an applied supplier price rule, a sales lines will be created for each such price rule, adding the Supplier’s registered customer as the alternate customer on the sales line.
Invoice Previews will be created based on the Customer. Therefore, if there are sales lines belonging to suppliers, in addition to the invoice preview created for the Customer, additional Invoice Previews will be created for Alternate Customers as well.