Tracking Warranty Costs

Yahoo Archive
1
Warranty Product Group. When you enter the sales order change it to the
new group and when you create the job, do the same.



Charlie Smith, Sr. Business Consultant

2W Technologies LLC

www.2WTech.com <http://www.2wtech.com/>



2W Tech on Facebook
<http://www.facebook.com/#!/pages/Chicago-IL/2W-Technologies-LLC/1391945
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From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of andyberg007
Sent: Thursday, December 02, 2010 4:16 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Tracking Warranty Costs





Our company is a part processor. We heat treat customer parts to their
specifications and ship back without adding any additional materials
throughout the process. We offer a warranty for our services and if
there is an issue where the part can not be reworked we may have to
issue a credit to the customer up to the parts value. We want to track
our warranty costs through Vantage as well as understand our internal
costs. We currently are on 8.03.305i.

Any suggestions on how to track these warranty costs would be
appreciated.

Andy Berg
Alfe Corporate Group





[Non-text portions of this message have been removed]
2
Our company is a part processor. We heat treat customer parts to their specifications and ship back without adding any additional materials throughout the process. We offer a warranty for our services and if there is an issue where the part can not be reworked we may have to issue a credit to the customer up to the parts value. We want to track our warranty costs through Vantage as well as understand our internal costs. We currently are on 8.03.305i.

Any suggestions on how to track these warranty costs would be appreciated.

Andy Berg
Alfe Corporate Group
3
Hi Andy, We set-up a product group that we use only for issuing warranty credit memos. The sales account assigned to the product group is an expense account. When the product group is selected when creating the credit memo, the system will debit the sales account associated with the product group. We have elected to track these credit memos as a cost of doing business instead of having them reduce sales so by assigning an expense account as the product group's sales account, accounting does not have to do a manual entry to reclass these dollars.

To track your internal costs, you could use the RMA process. Even if your customers are not actually returning parts, you associate the RMA with the original sales order and then when you dispose of the RMA the system will tell you the material, burden, subcontract, and labor costs for the job associated with the sales order you assigned to the RMA. Then you can decide what you want to do with these costs. There are a lot of options at this point so if you want to discuss what we do to finalize the process, feel free to contact me directly offline.

HTH,
Virginia Joseph
Deep Hole Specailists, LLC
440-543-8157

--- In vantage@yahoogroups.com, "andyberg007" <andyberg@...> wrote:
>
> Our company is a part processor. We heat treat customer parts to their specifications and ship back without adding any additional materials throughout the process. We offer a warranty for our services and if there is an issue where the part can not be reworked we may have to issue a credit to the customer up to the parts value. We want to track our warranty costs through Vantage as well as understand our internal costs. We currently are on 8.03.305i.
>
> Any suggestions on how to track these warranty costs would be appreciated.
>
> Andy Berg
> Alfe Corporate Group
>