Overview
AATC sometimes sells Warranty Service Contracts on the Sales Order.
There could be multiple lines of Warranty Service Contract.
AATC needs to track payables and pay vendors accordingly.
Setups
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Create an Item for the Warranty Service Contract. Done,
The Item No is Warranty Service Contract.
Use Standard Base Cost to define the contract’s cost.
Use Standard Base Price to define the contract’s price.
Add a field, Warranty Service Contact Vendor, a lookup field to the Account table.
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On the Company Setup page, add 1 field: Done
Warranty Service Contract Service Item, an item lookup field.
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Overview
AATC occasionally sells Warranty Service Contracts as part of the Sales Order process.
Multiple Warranty Service Contract items can be included in a single order.
AATC must track payables and ensure timely payments to vendors.
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Setup Instructions
Create Warranty Service Contract Item
Define a service item specifically for Warranty Service Contracts.
Check the Warranty Service Item checkbox.
Specify the Warranty Service Contact Vendor for the item.
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Define Contract Cost and Price
Set the Standard Base Cost to establish the contract's cost.
Set the Standard Base Price to define the contract's selling price.
(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
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Process
Adding Warranty Service
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Sales Order and Sales Invoice Process
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Items
When a Warranty Service Item is added to a Sales Order or Sales Invoice:
Automatically populate the Standard Base Cost and Standard Base Price
When posting Sales Invoices, if there are any Sales Invoice Lines with the following conditions: Done
Item = Warranty Service Item defined on the Company Setup in the line item.
Posting Sales Invoices
Upon posting, check for Sales Invoice Lines where:
Item is a Warranty Service Item.
Warranty Service Purchase Invoice field is blank.
For eligible lines:
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Create a Purchase Invoice
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for each Sales Invoice Line.
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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.
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 = Warranty Service Item defined on the Company Setup.
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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.