Warranty claim from vendor

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jjauto2011
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Warranty claim from vendor

Post by jjauto2011 »

We had a warranty claim that the vendor paid us (faulty parts caused additional damage to our customer's vehicle), but they gave us a credit on our account with them instead of sending a check. Is there a way to post the invoice with the total amount, or would I have to zero the invoice out and post it that way?
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ricmorin
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Re: Warranty claim from vendor

Post by ricmorin »

Document the payment IMO. Create a payment type called Vendor Reimbursement or similar. 'Pay' the final Invoice with that payment type.
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Motorcar Alternatives, LLC
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www.motorcaralternatives.com

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jjauto2011
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Re: Warranty claim from vendor

Post by jjauto2011 »

Thank you, thank you, thank you!
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Re: Warranty claim from vendor

Post by JAKES18 »

I similar question however I need to know how to set an account type that would reflect an in house warranty. All of our repairs are backed by a 24/24 warranty. So when we do these warranty repairs we used to have an AR account that these would get posted to. In Mitchell I'm not sure how to do this. Help please!
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ricmorin
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Re: Warranty claim from vendor

Post by ricmorin »

JAKES18 wrote:I similar question however I need to know how to set an account type that would reflect an in house warranty. All of our repairs are backed by a 24/24 warranty. So when we do these warranty repairs we used to have an AR account that these would get posted to. In Mitchell I'm not sure how to do this. Help please!
Welcome to the Forum.

My first thought would be to create a payment type called 'Warranty'. Make your invoice as you would for any other type of job and then 'pay' the invoice using this newly made type. Payment types can have their own unique GL codes. That is helpful when using integration software or when sorting out income sources.
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
Motorcar Alternatives, LLC
603-622-6434 x203
www.motorcaralternatives.com

I find my life is a lot easier when I use Special Orders
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timbre4
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Re: Warranty claim from vendor

Post by timbre4 »

If memory serves, a new Manager SE install includes a Warranty payment type entry. Check in Setup - Standard Tables - Income / Payment Types. If not seen, click on Add to create one.
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warranty.png (2.52 KiB) Viewed 4726 times
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xtremeautorepair
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Re: Warranty claim from vendor

Post by xtremeautorepair »

I also have a question. I've been in mechanics for decades, however, been running my own shop for 2.5 years. It's great. Here is what I have.
Trying to figure out how to enter and post warranty claim repair jobs correctly. I will use just a few even figures to keep it simple.

First, we purchase and install a part which cost $500 and sell for $700 with a 2-year parts and labor warranty. We also use one additional item called oil with a cost of $5 and sell for $20.00. The labor charged to the customer is $300 for 3 hours labor time of $100 per hour labor rate but the employee paid labor is $25 and hour for a total of $75. That comes to $1020 plus tax. With 10% tax which is $102 and a grand total of $1122.00. Customer pays $1122 and leaves. Now the part fails within 5 days. The manufacture of the part sends a new replacement part at no charge and sends a labor reimbursement check for 3 hours labor at $50 per hour for a total of $150. I must refurnish the oil again at no charge to the customer since the failure is not his fault, but need to show that as a loss.

Also on this one. The warranty check is issued from a tax exempt account.

How should this be entered on a returning customers new invoice and be posted? Let’s not forget about the tax. Thanks
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ricmorin
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Re: Warranty claim from vendor

Post by ricmorin »

xtremeautorepair wrote:I also have a question. I've been in mechanics for decades, however, been running my own shop for 2.5 years. It's great. Here is what I have.
Trying to figure out how to enter and post warranty claim repair jobs correctly. I will use just a few even figures to keep it simple.

First, we purchase and install a part which cost $500 and sell for $700 with a 2-year parts and labor warranty. We also use one additional item called oil with a cost of $5 and sell for $20.00. The labor charged to the customer is $300 for 3 hours labor time of $100 per hour labor rate but the employee paid labor is $25 and hour for a total of $75. That comes to $1020 plus tax. With 10% tax which is $102 and a grand total of $1122.00. Customer pays $1122 and leaves. Now the part fails within 5 days. The manufacture of the part sends a new replacement part at no charge and sends a labor reimbursement check for 3 hours labor at $50 per hour for a total of $150. I must refurnish the oil again at no charge to the customer since the failure is not his fault, but need to show that as a loss.

Also on this one. The warranty check is issued from a tax exempt account.

How should this be entered on a returning customers new invoice and be posted? Let’s not forget about the tax. Thanks
Some of this depends on how tax is applied where you are, so modify my suggestions to meet those regulations.

Create a new tax exempt customer reflecting whoever is warrantying the job. Transfer ownership of the vehicle to this new 'owner'. Write the ticket for the vehicle under the new owner. Show the failed part as zero cost and zero total. You can either show the labor as standard and create a discount to get it to the reimbursed amount or simply bill 3 hours for 150. Add the oil but change the sell price to zero to show the loss. The ticket should show a total of 150 and you pay it off with the check provided. Once paid, change ownership back to the original customer.
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
Motorcar Alternatives, LLC
603-622-6434 x203
www.motorcaralternatives.com

I find my life is a lot easier when I use Special Orders
xtremeautorepair
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Re: Warranty claim from vendor

Post by xtremeautorepair »

Thanks Ric,

That is really a great way to do it. Gotta love these forums. They help when help is needed. I appreciate it. If anyone else has any other ways of posting this, please don't hesitate to chime in.

Have a awesome day.
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