Warranty 

 

Definition

 

Commitment from a manufacturer, vendor, or salesperson to a customer that a product has no defects, and that services such as repairs and part or complete exchange of defective parts is guaranteed for a particular period of time without the customer being billed.

 

Use

Several business transactions such as the buying, selling and servicing of products are linked to a warranty. In the service industry, warranties play a crucial role since they are often the starting point for the services themselves.

For warranty management in CRM Service use the product type Warranty. Warranties can be subdivided as follows:

·        Warranty category: Customer warranty, vendor warranty

·        Warranty reference: Time-dependent, counter-dependent, time/counter-dependent

Warranties can be tailored to meet customers’ requirements and can be flexibly assigned to the individual components of a customer installed base. You can assign several warranties for each component of an installed base. You can define a warranty template in advance for those warranties that are used frequently.

 

Integration

 

When you create a business transaction in Service, the system automatically checks in the background whether warranties exist for the reference object and assigns them accordingly. During the calculation of prices for services and spare parts in billing, these warranties can be accounted for through appropriate discounts.

 

Example

 

A machine manufacturer is selling equipment and would like to give the customer specific warranties for various units of this equipment (customer warranty). The warranty for the engine will last three years and for the parts of the casing, ten years. On the other hand, for parts that are prone to wear and tear, the warranty must be dependent on the number of operating hours involved.

The machine manufacturer buys some of the equipment from his vendors only, and builds them into the equipment. He then gets a warranty from the vendors (vendor warranty). He wants to store these in the system, so that any repair costs that may arise during the validity period of the vendor warranty, can be charged to the vendor.