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Overview
AATC
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occasionally sells Warranty Service Contracts
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as part of the Sales Order process.
- There could be multiple
Multiple Warranty Service Contract items can be included in a single order.
AATC needs to must track payables and pay ensure timely payments to vendors accordingly.
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Setup Instructions
Create
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Warranty Service Contract Item
Define a service item specifically for Warranty Service
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Contracts.
Check the Warranty Service Item checkbox.
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Specify the Warranty Service Contact Vendor for the item.
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Define Contract Cost and Price
Set the Standard Base Cost to
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establish the
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contract's cost.
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Set the Standard Base Price to define the
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contract's selling price.
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(Refer to accompanying images for setup details.)
Configure Vendor Account
For the Warranty Service Contract Vendor:
Enter a default Expense GL Account
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in the
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vendor profile.
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Ensure the GL Account
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is part of the COGS (Cost of Goods Sold) section.
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Sales Order and Sales Invoice Process
Adding Warranty Service Items
When entering a Warranty Service Item on is added to a Sales Order , or Sales Invoice, :
Automatically populate the Standard Base Cost and Standard Base Price
in the line item.
Posting Sales Invoices
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Upon posting, check for Sales Invoice Lines
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where:
Item is a Warranty Service Item.
Warranty Service Purchase Invoice field is blank.
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For eligible lines:
Create a Purchase Invoice
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for each Sales Invoice Line.
Use the Warranty Service Contact Vendor
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specified on the
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item setup page.
Use the default GL Account
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from the Warranty Service Contact Vendor
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profile.
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Populate the following fields
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on the Purchase Invoice Header for
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reconciliation:
Bill-to Customer
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→ Bill-to Warranty Customer.
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Update the Purchase Invoice ID
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in the corresponding Sales Invoice Lines.
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End-of-Month Routine
Review
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Pending Lines
Identify Sales Invoice Lines
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that meet the following conditions
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:
Item is a Warranty Service Item.
Warranty Service Purchase Invoice field is blank.
Create Purchase Invoices
Manually generate Purchase Invoices for all identified lines.
Populate the Warranty Service Purchase Invoice field on the corresponding Sales Invoice Lines.
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Item is Warranty Service Item
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Post and Pay Purchase Invoices
Post all open Purchase Invoices
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associated with Warranty Service
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Contracts.
Select and process Purchase Invoices
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for payment.