Before you can process warranties, you must configure the vendors who guarantee them, the products to which they apply, and the accounts to manage them in the general ledger to ensure that these transactions post correctly.
We recommend that you contact DDI Customer Care to schedule a consultation for setup and training on this feature.
- Go to File > Vendor > Master.
- In the Vendor box, find the vendor you want to edit by typing the name, number, city, or phone. If the data for your vendor does not appear automatically, press the Tab key.
- From the Setup page, click the Warranty tab.
- Click Edit.
- From the Requirements list, select the check boxes beside the information that is required for you to submit a warranty claim for the equipment. The information may be required at the Part level, the Equipment level, or both.
- From the Failure Reasons list, select the possible causes for failure that the vendor will accept under the warranty. These failure reasons will be included in a list, when you enter the warranty tag.
- Click Save.
- Edit the general information of the product on the Product Master as described in Configure general product options.
- Select the WarrantySelect this option for products that are eligible for warranty repairs or replacement from your vendor. From the Type list choose whether the warranty is Part or Equipment. Information required for warranty processing depends on this type. Also type the number of months under which the product will be on warranty. Products outside of the warranty period can not be processed as a warranty return. If the warranty never expires, then leave this field blank. check box, and choose the TypeThe type of customer, for example Home Owner, Independent Contractor, etc. Use this information as a basis for grouping customers to send mailings. of Warranty. You must choose the Type to make the product eligible for a warranty.
- Type the number of Months that the product is covered. The number of months is the length of the warranty period provided by the vendor. Products cannot be returned for a warranty claim past this number of months (this field can be left blank if there is no warrant duration limit).
- Click Save.
Note: You may also update the Warranty setting on a group of products using Mass Change and choosing the Warranty? field. See Update data in bulk using mass change.
To process and account for warranty claims, you must set up three accounts in the General Ledger Control Table. Go to Accounting > General Ledger > G/L Control Table
- Warranty Pending Account: This account is debited in place of the inventory account when a return credit is processed through Sales Order Entry for a warranty item. When the warranty claim for the item is submitted to the vendor, this account is credited.
- Warranty A/R Account: This account is debited when the warranty claim is submitted to the vendor for the full amount expected to be received on the claim. It is credited when payment, vendor credit, or a replacement product is received for the claim.
- Warranty Discrepancy Account: Amounts are posted to this account only when there is a discrepancy between the amount expected to be received on a claim and the amount actually received as payment or credit from the vendor.
If you do not currently have General Ledger accounts for these transactions, you may need to create new accounts from the G/L Account screen. See Maintain your general ledger accounts.