Part exchange & service flow?

Hey Gang,

Wondering if anyone has experience with part exchanges and services, and what the best way to handle the following scenario.

We sell a unit that contains a sensor that needs to be regularly calibrated. We plan to have a pool of calibrated sensor ready to ship and have the customer send us the uncalibrated, and once it’s received and verified as in good condition, we will send them an already calibrated sensor in exchange. Then re-cal their old sensor to go in the pool for the next customer.

Wondering what the best way to handle this is from an account, inventory, costing standpoint. Here’s what we’re thinking. Part Numbers in BOLD

  1. We sell assembly ASM1234, which contains a sensor(SENSOR-NEW @ $1,000) that needs to be regularly calibrated.
  2. When the sensor needs to be calibrated, an order will be created for a SENSOR-CAL @ $1,500, and an RMA will be issued for the return of the sensor (SENSOR-UNCAL @ $1,000 standard cost) to us.
  3. When the sensor is received and verified good, we will create a credit memo for $1,000 (the price of a new sensor) to apply to the order invoice and issued the old sensor to a job to be recalibrated. If it’s a dead/damaged sensor, no CM will be created.
  4. A calibrated sensor from stock will be shipped to the customer and invoice either $500 for just the cal/exchange or $1,500 for a replacement sensor.
  5. The uncalibrated sensor will be calibrated on a job and then received into stock, ready to ship to the next customer.
    Does this sound like it would work? Is there a more straightforward way to manage this flow?

Any import or thoughts would be appreciated!

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couple of options:

  1. ALWAYS charge $1500 for the replacement calibrated sensor when it is shipped (no matter if the RMA is good). This shipment COULD take place before the RMA is fully inspected
  2. When the RMA is inspected and determined good, issue a $1000 credit memo to the customer.
  3. when customer pays, thy only pay 500 and you match against the 1500 inv and 1000 credit.

Same above could be done, but instead of the 1500 charge on the order… make the charge 500 + a $1000 core charge (misc charge)… Still give the $1000 credit memo if the parts are good…

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Thanks for the reply @timshuwy, nice to know we were headed in the right direction!

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