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
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.
On the Company Setup page, add 1 field: Done
Warranty Service Contract Service Item, an item lookup field.
Create a Vendor account that offers the Warranty Service Contract. Done
Enter a default Expense GL Account on the Vendor Account.
The default GL Account should be in the COGS section.
On the Sales Invoice Line, add Warranty Service Purchase Invoice, a lookup field to the Purchase Invoice table. Done
Sales Order and Sales Invoice Process
Make sure the Standard Base Cost and Standard Base Price are populated when the Warranty Service Item is entered on the Sales Line and when the Sales Invoice Line is created. Done
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.
Warranty Service Purchase Invoice is blank.
Then a Purchase Invoice will be created per Sales Invoice Line. Done
Use the Warranty Service Contact Vendor defined on the Warranty Service Item page.
Use the default GL Account defined on the Warranty Service Contact Vendor page.
Copy the following fields to the Purchase Invoice Header for reconciliations:
Bill-to Customer to Bill-to Warranty Customer
Populate Purchase Invoice ID back to Sales Invoice Lines. Done
End of Month Routine
Review all Sales Invoice Lines with the following conditions. If there are any records, users should manually create Purchase Invoices and then populate the Warranty Service Purchase Invoice field on the Sales Invoice Lines.
Item = Warranty Service Item defined on the Company Setup.
Warranty Service Purchase Invoice is blank.
Post all open Purchase Invoices created for the Warranty Service Contract.
Select Purchase Invoices to pay.