Overview
AATC sometimes sells Warranty Service Contracts on the Sales Order.
There could be multiple Warranty Service Contract items
AATC needs to track payables and pay vendors accordingly.
Setups
Create an Item for the Warranty Service Contract.
Check Warranty Service Item
Populate Warranty Service Contact Vendor
Populate Standard Base Cost to define the contract’s cost.
Populate Standard Base Price to define the contract’s price.
For the Warranty Service Contract Vendor
Enter a default Expense GL Account on the Vendor Account.
The default GL Account should be in the COGS section.
Sales Order and Sales Invoice Process
When entering a Warranty Service Item on Sales Order, or Sales Invoice, populate the Standard Base Cost and Standard Base Price to the line.
When posting Sales Invoices, if there are any Sales Invoice Lines with the following conditions:
Item is a Warranty Service Item.
Warranty Service Purchase Invoice is blank.
Then a Purchase Invoice will be created per Sales Invoice Line.
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.
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 is Warranty Service Item
Warranty Service Purchase Invoice is blank.
Post all open Purchase Invoices created for the Warranty Service Contract.
Select Purchase Invoices to pay.