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Warranty Shortage / Overage

  • Updated

A common issue with warranty companies is you get a shortage or overage on the payment. This document will show you how to handle payments for those instances. These steps cover after you have input the warranty credit information from the payment.

Handle Shortage from Warranty Credit

Handle Overage from Warranty Credit

Handle Shortage from Warranty Credit

If you get a check from the warranty company that is less than the claim amount:

  1. On the gray starred blank line, select the claim number from the dropdown. The system will fill in the claim amount.
  2. Enter the payment amount in the GL Credit Amount field.
  3. On a new line, select the same claim number. 
  4. Enter the difference between the claim amount and the payment amount into the GL Credit Amount field.
  5. Enter the warranty overage/shortage GL account into the GL Debit Account field. The shortage amount will be a debit to the expense account.

warrantycredit_shortage_steps.png

  1. Optionally, you may enter the Warranty Employee who is processing the claim. This is for reporting purposes.
  2. Optionally, you may check the Apply Shortage to Warranty Writer box. This is for reporting purposes.
  3. Click the button to Mark Completed when finished.

Handle Overage from Warranty Credit

If you get a check from the warranty company that is higher than the claim amount:

  1. On the gray starred blank line, select the claim number from the dropdown. The system will fill in the claim amount.
  2. On a new line, select the same claim number.
  3. Enter the warranty overage/shortage GL account into the GL Credit Account field. You may want to use the same expense account you have for shortages because these amounts will reduce those expenses.
  4. Enter the overage amount into the GL Credit Amount field.
  5. Optionally, you may enter comments about the claim payment per line.

warrantycredit_overage_steps.png

  1. Optionally, you may enter the Warranty Employee who is processing the claim. This is for reporting purposes.
  2. Optionally, you may check the Apply Shortage to Warranty Writer box. This is for reporting purposes.
  3. Click the button to Mark Completed when finished.

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