About warranty return line items

Q:

When is it appropriate to select Warranty in the Action area for a line item?

A:

The Warranty option enables you to add a line item for a warranty product that a customer is returning. If the product is still under warranty, a credit is applied to the order for the warranty item. If a warranty schedule is specified for the product on the Product Management tab, the credit is prorated based on (1) the warranty schedule, (2) the number of months that have passed since the original purchase date, and (3) the warranty type associated with the customer's standard price level.

Note: Some products are ineligible for warranty returns. If a product is flagged as ineligible for warranty returns, the Warranty option is not available in the Action area. Products can be flagged as ineligible for warranty returns on the Costs/Prices screen of the Product Management tab. For more information, refer to Set up warranty information.

Warranty returns are sent to the vendor for a credit.

To apply a credit for a warranty return line item to an existing release or invoice, select C/M Pickup or C/M One Step in the Order Type area on the Current Order screen.

To combine a warranty return line item on the same order with sale line items, select Standard in the Order Type area. Note that if Standard is selected, the credit cannot be applied to an existing release or invoice.

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Q:

If the line item is a warranty return, how are the price and cost determined?

A:

If the line item is a warranty return and if a warranty schedule is not assigned to the product, the system uses the current price and current cost for the warranty item, and a credit is applied for the entire amount.

If the line item is a warranty return and if a warranty schedule is assigned to the product, the Dt field and the Mo field are available in the line item area on the Current Order screen of the Customer Service tab. Entry in one of these fields is required so that the system can determine how to calculate the warranty return credit. Note that you cannot enter data in both the Dt field and the Mo field:

• If you know the exact original date of purchase of the warranty item, select the Dt field and type the purchase date (or click the arrow to select the date from the calendar). The system calculates how many months have elapsed since that date and displays the number in the Mo field. The system calculates the prorated credit based on this number of months.

• If you do not know the exact original date of purchase of the warranty item, type the number of months since the customer originally purchased the warranty item in the Mo field. The system calculates the prorated credit based on this number of months.

To learn how the cost is calculated, refer to Understand how warranty credits are calculated for orders.

The following are additional details that apply to warranty return line items:

• If the warranty return line item is for a product that includes a core, the system must determine the core price and core cost. The system uses the current core price and the current core cost that are established for the product on the Costs/Prices screen of the Product Management tab. This is true even if an invoice or release is referenced for the order.

When the customer originally purchased the core from you, the price and cost of the core may have been different than the amounts at the time of return. However, because the current core cost is the dollar amount you will receive from the vendor when you return the warranty product, the current core cost and current core price are used for the customer's warranty return order.

• The core price and the core cost cannot be overridden on the Current Order screen of the Customer Service tab.

• The system never puts a warranty return line item on price hold.

• The price source of a warranty return line item is automatically set to override pricing. The default for the Unit Price field is the current price of the product unless a release or invoice is referenced. If a release or invoice is referenced, then the price indicated for the release or invoice is used.

• The Excise Tax %, Disposal Fee, and Restocking% fields are not available.

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Q:

What characteristics — other than price and cost — exist for warranty return line items entered on the Current Order screen of the Customer Service tab?

A:

For a warranty return line item entered on the Current Order screen:

• The Warranty Tag field is available. Entry in this field is not required.

You can attach a warranty tag to the product. Warranty tags identify the reason for a return. In addition, each tag has a tag number. In the Warranty Tag field, type this tag number. Doing so helps establish an audit trail for this returned item.

• The Dt field and the Mo field are available if a warranty schedule is selected for this product. Entry in one of these fields is required. If you enter data in one of these fields, the other field is no longer available:

• If you know the exact original date of purchase of the warranty item, select the Dt field and type the purchase date (or click the arrow to select the date from the calendar). The system calculates how many months have elapsed since that date and displays the number in the Mo field. The system calculates the prorated credit based on this number of months.

• If you do not know the exact original date of purchase of the warranty item, type the number of months since the customer purchased the warranty item in the Mo field. The system calculates the prorated credit based on this number of months.

• The system automatically changes the order quantity entered in the Ord field to a negative number if a positive number is entered. The system also changes the quantity to a negative number if the option selected for the line item in the Action area is changed from Sale to Warranty.

• The Drop Ship check box is not available.

• The system does not display the Credit Return Indicator drop-down list. The Return Indicator for all warranty return line items is set automatically to Stock Return so that the warranty products can be sent to the warranty warehouse for further processing.

• The Reason drop-down list in the Credit area is available. Select the appropriate reason from this drop-down list to identify why the customer is returning the warranty product.

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Q:

How does the system process warranty returns? Which warehouse receives the returns?

A:

When customers return products to you that are still under warranty, you can return those warranty products to the vendor for a credit. To determine which warehouse should receive a warranty return that needs to be processed and returned to the vendor:

• The system first checks the settings for the warehouse selected for the order. If a warranty warehouse is assigned to the ordering warehouse, the warranty warehouse receives the warranty return. (A warranty warehouse is assigned to a warehouse in Warehouse maintenance. For more information, refer to Select a warehouse's supporting warehouses.)

• If a warranty warehouse is not assigned to the ordering warehouse, then the default return warehouse set up for your system on the Vision Configuration tab receives the warranty product. (For more information, refer to Specify settings for core and warranty returns.)

• If no default return warehouse is set up for your system, then the ordering warehouse receives the warranty return.

When an order that contains a warranty return line item is accepted, the on-hand quantity of the warranty warehouse is increased to reflect the addition of the warranty product being returned.

Note: If you are entering a new order and you change the Action option from Sale to Warranty, any committed inventory is backed out. Furthermore, if you are entering a new order and you change the Action option from Warranty to Sale, the inventory is committed and line item sourcing logic is invoked if applicable. (For more information on line item sourcing, refer to Source a line item.)

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