Hello everyone. I have been playing around in test, watching videos, and racking my brain about how to improve our warranty process. We just recently implemented QuickShip, and although unrelated, we’re running into an issue with marking the sales order as a $0 part because naturally QuickShip wants the value of the part for Customs.
It got me thinking, of how others handle warranty items in Epicor? I tried assigning a warranty code to the product group but I don’t fully understand what this does. It did not 0 out the price at the invoice level which is what I was expecting. I understand you can assign warranties to parts, but it would be easier for our company to do at the product group since we use the configurator.
Any suggestions? Basically we want to have the ability to ship out a sales order under warranty and not have it charge the customer. And, would like to avoid manual intervention and a bunch of customizations if possible.
In one of my old positions I had warranty working like you want but that was with the Field Service Module. I have not tried doing this without it. I know this is not really an answer (sorry), but thought it was some valid information if no one else replies.
I am by no means an accountant, but I can tell you about how we manage our warranty to our accounting’s satisfaction. We do not use quick ship. We have a sales category called “warranty” with a g/l control tied to it. We do zero dollar sales order lines with jobs tied to them for our repair work. We dispose RMAs to the repair jobs, with the RMA part cost at disposition = $0. This ensures that we do not add cost of part to job, since it’s owned by customer already and we’re just fixing it. Then we add materials and do labor for operations and this goes into the cost of the job, tied make direct to the zero dollar sales order line. We do customer shipment and zero dollar invoice for warranty. We estimate the value of the shipment at the same cost as the original part, manually on our shipping documentation.
Thank you. We actually do this, or something similar to it. I was just hoping to get some feedback for the folks doing this and shipping to Canada so it doesn’t have to be manual. But it’s looking like that may be our route.
@MDiekhuis, open a support ticket with the Quickship team. They walked me through this in the past. There is a field in the shipment within Quickship for resale/warranty.
Yes, there is a field in International Paperwork for a Warranty shipment that won’t charge duties/taxes. But it still wants the full value on the part numbers.
We use the Fair Market Value in the Products/Export tab in Manifest for that. Not sure if QuickShip is different. this allows you to enter a $1 value on the ship docs only, while keeping the Epicor side at $0.
I know this thread is old, but it’s so exactly what I am asking about and I want to make sure those in this thread see it.
We are looking at using this field for the reasons mentioned above regarding warranty and international shipments. Before we do, I want to ask - should I be using the “real” value of the part or like was mentioned in here $1? Does it impact taxes/shipment costs or anything else? I was also told that on occasion, customs will question the value of something that is obviously worth more than $1 and can cause headaches. Currently, we would put $1 or $0.01 on the sales order to allow the international paperwork to generate. We were hoping to find a solid alternative that didn’t require manual intervention also.
I delved into this about a year ago and had a phone call with an old pro, a former coworker of a former coworker. These customs docs are a real bear if you do them right. I know for a fact we don’t.
As far as declared value, I set up a third-party integration with UPS WorldShip, and for our warranty sales orders, we also do zero-dollar orders, so I set up the integration to use 50% of the list price, which I felt was fair in our case. I could have done it at cost, but then the customers would see what we pay…
But in Quick Ship, it sounds like it is all manual.
Also, I did toy with the idea of putting actual dollar amounts on a warranty sales order and writing it off later. (We do this with the shipping costs already.) Challenges I see there:
Would it add taxes? Should it?–it’s not a real sale.
Make sure no discounts are applied or send them to the same account as the “sale.”
And then of course, it’s yet another thing to do, posting invoices and then writing them off.
I mapped out the GL hierarchy of putting a value on the sales order itself. Obviously your account numbers will differ, etc. My X’s are to show that there was no advantage to the write-off process (for us); zero-dollar orders end up doing the same thing anyway.
Yes, I would say you should use the real value of the part for insurance reasons. You can code it as warranty and it won’t charge you duties/fees, I believe but not an expert. Our issue was obviously we’re sending it to our customer at $0. We did get the fair market value to work, but it certainly isn’t an efficient process.
