Warranty Manager Setup and Processing Warranty Claims (Video)

Warranty Manager Setup and Processing Warranty Claims (Video)

1      Introduction

This article and videos provide an overview of how to configure unit and part warranties in EMDECS, assign vendors as warranty manufacturers, and provides a walkthrough of the warranty manager system.

2      Video Walkthrough:  Create Warranty Programs

Click on the square at the bottom right-hand corner to view the video in full screen mode.


3      Video Walkthrough:  Process Warranty Claims

Click on the square at the bottom right-hand corner to view the video in full screen mode.


4      Getting Started:  Assign warranty tasks and set up vendors / manufacturers

To get started with the Warranty Manager, warranty tasks need to be assigned and vendors need to be set as manufacturers.   This section steps through the setup requirements.

4.1      Set Eligible Equipment Warranty Tasks

All work order tasks (i.e., labor lines) have a task code associated with them. This is not something a tech or service manager would normally change, but it will be necessary for them to do so going forward if the default task codes are not selected for triggering equipment warranties. Only a labor line whose task code matches one of the predefined warranty tasks will trigger a warranty.

Warranty tasks can be configured by opening the Fleet menu  Warranty then click on Equipment Warranty Tasks under the "Things To Do" list on the left hand side.  Select work order tasks by selecting them and using the arrows to move them from the list of all possible Work Order Tasks to the Equipment Warranty Tasks list (and vice versa).   If a task code is not added to the Equipment Warranty Tasks list, it will not trigger a warranty.   For example, you may have an inspection task code that should never trigger warranty claims.


4.2      Set Vendor as a Manufacturer

Unit and part warranties are tied to vendor records in EMDECS. After adding the vendor to EMDECS, it needs to be set as a Manufacturer. This assigned type is required to trigger warranty candidates.

Note - the vendor does not actually need to be a manufacturer of parts or units. For the purposes of EMDECS, whether they are a dealer, parts vendor, manufacturer, or third party warranty service provider, they need to be added as a contract vendor with the Manufacturer flag checked.

Open Administration Vendors and then search for and click on the appropriate vendor name (or add them if this is going to be a new vendor honouring the parts warranty). Put a check next to Manufacturer and this will add the manufacturer vendor type.  Optionally, you can also enter a warranty labor rate.



5      Create Warranty Programs

The wizard dedicated to creating warranty programs is found by selecting Fleet Warranty from the Kona menu and then selecting the Warranty Programs tab. There are three tasks that can be accomplished:
  1. Create a unit warranty group
  2. Create a part warranty group
  3. Edit an existing unit or part warranty group

5.1      Add a Unit Warranty Program

A unit warranty takes the task code on a labor line and compares it to the VMRS system/assembly/VMRS part #. If the task code is correct for triggering a warranty and the unit has a unit warranty on it, the warranty is created only if the VMRS of the labor line is listed in the warranty. For example, a bumper to bumper warranty might cover all types of repair activities (all VMRS codes), while a power train warranty may only apply for VMRS codes related to engine and transmission repairs.   Users may also need to ensure that repair task codes for accident damage are not valid for use with warranty.

  1. To add a new unit warranty, open the Fleet menu and select Warranty , then open the Warranty Programs tab and click on Add Unit Warranty .


  2. The warranty program wizard will pop-up.   Click Next to continue.


  3. The default manufacturer, program code, and description must be entered.   Notes are optional.  Put a check next to Extended Warranty Purchased if there is an additional extended warranty on top of the base warranty.  Click Next to continue.


  4. If you have existing warranty programs set up and you want to reuse the same configuration, select the program name from the drop-down list. Click Next to continue.


  5. The warranty coverage can be set as a period of time in years, months, or days.   Optionally a reading limit can be entered by clicking Add.

    In the example pictured below, the warranty program being created has base warranty of 36 months, up to 200,000 KM, with an extended warranty of 24 months up to an additional 100,000 KM. Click Next to continue.

  6. To determine whether a warranty is triggered for a labor activity, EMDECS looks at the labor task code and VMRS code. Both must “hit” for a warranty to be created. The VMRS System stop of the wizard defines the applicable VMRS code(s). Warranty groups must be linked to one or more manufacturers.  If the same warranty program applies to multiple manufacturers, they can be added to the list by clicking on the green plus or Add link in the Manufacturers pane.

    The default period/reading for the highlighted manufacturer's warranty is shown in the lower right. In the middle of the screen is a Systems pane where warranty applicable VMRS codes need to be entered. To add VMRS system codes, click Add.


  7. A Manufacturer Systems window will pop-up to select system and assembly codes for the warranty program. The first option, "All," can be selected if every VMRS labor activity is covered by the warranty. For example, a bumper-to-bumper warranty for a new vehicle may cover all repair services.

    Otherwise, to specify which systems are covered by the warranty, select the appropriate VMRS System from the first drop-down list (i.e. 040 for the Engine/Motor Systems Group).  If all repair services for the selected system are covered by the warranty, it is not necessary to select a VMRS Assembly or VMRS Part #.  They can
    be left blank.  Select a specific VMRS Assembly code and/or VMRS Part # only if the warranty does not cover all assemblies within the VMRS system.  Click OK to add the VMRS code.
    The VMRS Part # drop-down list may be empty.  This code is a legacy feature and is not required.



    If only some VMRS repair codes are exempt from warranty coverage (i.e. preventative maintenance services), it may be faster to add all system codes then manually remove the VMRS codes that are not covered by the warranty.

    Repeat steps 6 and 7 until you have added all necessary VMRS System/VMRS Assembly/VMRS Part # combinations that are covered by the warranty. 

  8. By default, all VMRS systems added will use the warranty period/reading limit set in the warranty program. You can override the period, the reading, or both, for any system.  For example, the engine and transmission may have a longer warranty period. To override the default warranty period/readings, highlight the appropriate system in the middle pane, then edit the limits on the right-hand side:


    When you are finished adding manufacturers, system codes, and overrides (steps 6-8), click Next .

  9. Units can be linked to the warranty program by selecting them and using the arrows to move them to the assigned units list on the right-hand side. Click OK to save the new warranty program.


5.1.1      Unit Initialization

Units need to be individually initialized with their warranty effective date and effective reading (if applicable).  
  1. Open Fleet Unit Master and search for and click on the appropriate unit number, then open the Warranty tab.  
  2. Select the appropriate warranty group, effective date, and click on the green plus to add an effective reading.

    If the unit already has existing reading history in EMDECS prior to the warranty effective date, the reading will populate automatically.

  3. A pop-up window will appear for entering a reading value.  Enter the reading and click OK.


  4. Click Save / Exit at the bottom of the screen to save the warranty settings.

    If there are warranty exceptions for the specific unit, they can be added by VMRS code in the bottom pane by clicking Add Warranty Exception.

5.2     Add a Parts Warranty Program

A part warranty is triggered if the task code of the labor activity has been set eligible, as documented in section 4.1 Set Eligible Equipment Warranty Tasks. and the part is replaced on the same unit within the effective warranty period, within applicable reading limits.

  1. To add a new parts warranty program, open the Fleet menu and select Warranty, then open the Warranty Programs tab and click on Add Part Warranty.


  2. The Warranty Program wizard will pop-up.  Click Next to continue.


  3. A program code and description must be entered. Notes are optional. Put a check next to Extended Warranty Purchased if there is an additional extended warranty on top of the base warranty. Click Next to continue.


  4. The warranty coverage can be set as a period of time in years, months, or days.   Optionally a reading limit can be entered by clicking Add.

    In the example pictured below, the warranty program being created has base warranty of 365 days, up to 100,000 KM, with an extended warranty of 365 days up to an additional 200,000 KM. Click Next to continue.


  5. Individual parts need to be assigned to the warranty program. On the Assign Program screen, search for and highlight parts in the Parts not Assigned list on the right-hand side, and use the arrows to move parts to the Assigned Parts list, and vice versa. Click OK to save the new warranty program after the list of parts have been assigned.


    Alternatively, parts can be linked to a warranty by opening Parts Part Master then search for and click on the appropriate part number.   From the Settings tab, a warranty program can be selected from the drop-down list.   The green plus and Edit links can be clicked on to launch the part warranty program wizard.


5.3      Edit Existing Unit or Part Warranty Programs

Existing warranty programs can be edited by clicking on the respective code name. This will open the unit or parts warranty program wizard to step through changes to the existing warranty program. The screens in the wizard are the same as documented above when creating a new unit or parts warranty.


5.4     Warranty Triggered on Repair

When the warranty flag is triggered on a repair, due to either a unit or parts warranty, it is indicated with a warranty flag on the repair order, as pictured below.   When a user clicks on Invoice or Close RO EMDECS will add the warranty trigger to the Warranty Claim Inbox.

 

6      Process Warranty Claims

This section provides a walkthrough on how to process warranty claims after repairs have been completed and invoiced. To review and process triggered warranty candidates, open the Fleet menu Warranty.


The tabs at the bottom of the Warranty Manager screen are used in sequence to step users through the warranty claim process.  Managers can move through each tab from Warranty Inbox Warranty Submission Warranty Reconciliation to process a claim and process payments from the vendor / manufacturer.   A brief description of each tab is provided below:

Warranty Inbox:  When a warranty is triggered, it will be listed in the Warranty Inbox tab, by manufacturer, with a unique claim number.   Managers review each claim and take an action to confirm it is a warranty candidate or mark it as not a valid warranty to remove it from the list.
Warranty Submission:  Valid warranty claims are moved to the Warranty Submission tab.   Managers can review the list of valid claims and make changes before submitting them for reconciliation.
Warranty Reconciliation:  After a claim is submitted, it is moved to the Warranty Reconciliation tab.   From here payments can be received and reconciled to finalize the claim.
Warranty Audit:  Warranty claim history can be reviewed from the Warranty Audit tab.  Rejected claims can also be returned to the Warranty Inbox, if they were rejected in error, or processed claims may be re-opened or charged back.
Warranty Payments:  Warranty payment history can be reviewed from the Warranty Payments tab.


Each of these tabs is explored in detail in the sections below.

6.1      Warranty Inbox

The Warranty Inbox tab lists all eligible warranty candidates. From this screen, service managers can review each possible warranty claim that has been triggered, and then indicate whether it is eligible for a claim from the vendor. The candidate list can be filtered by From/To Date, Status, Location, and there is a search field.

The inbox screen has two main panes - Manufacturer on the left and Eligible Warranty Candidates on the right. Select a manufacturer on the left-hand side to display the list of warranty candidates for the highlighted manufacturer, then click on a warranty claim number to view the claim in detail.


Clicking on a claim number drills down and provides more information to investigate the warranty claim.   The warranty claim screen will pop-up with the claim number displayed at the top left. Much of the information about the candidate will be pre-populated from the repair order, but where appropriate you can edit the preexisting information or fill in a field where information is missing.

Fields marked with an asterisk (*) are required fields and must be completed.

If there are unclaimed parts on a repair or miscellaneous pay items (such as shipping costs) that are covered by the manufacturer, they can be added to the claim using the Add Part and Add Misc. Pay Item links.

To process the claim, select an action from the drop-down list at the bottom of the screen and then click on the Process button.

The following actions can be selected:

  1. Not a warranty claim
  2. Valid warranty claim
  3. No Charge warranty
  4. Request for more information (selecting this option will send an email to the email distribution list - this is documented in more detail in the Email Distribution List section)

If the selected action is a warranty submission, the candidate will move to the Warranty Submission tab. If the action was a Request for Information, it will stay on the Warranty Inbox screen but be marked with the status RFI. If the action was Not a Warranty, the candidate will be removed from the Warranty Inbox.



The part number "SHOP" is hard coded to be manually excluded from appearing in the parts list in the warranty manager system.   This is to accommodate EMDECS users who use part number "SHOP" for miscellaneous charges.

To review unit repair history, click on the Repair History sub-tab. The Import buttons can be used to import a copy of labor and part items linked to other repair orders that should be included in the claim.


The Unit Specifications sub-tab displays basic unit details from EMDECS. This can include the make and model, the model year, etc.



Warranty candidates can be removed in bulk on the main Warranty Inbox screen by checking the select boxes and clicking on the Not a Warranty button.



6.2      Warranty Submission

After valid claims have been reviewed and submitted from the Warranty Inbox tab, open the Warranty Submission tab to review and process claims. Claims are again grouped by manufacturer. Click on a claim number to view a submitted claim.



The pop-up window displays the claim information submitted from the Warranty Inbox, in the same layout.   May any corrections or changes, as required, then click on either the Submit or Submit & Next button at the bottom.   Submit & Next will reload the screen and display the next submitted warranty claim from the list.



Enter the reference number from the manufacturer's claim system (normally obtained by submitting a claim through the manufacturer's website) in the OE Reference # field in the pop-up window.   Click OK.


6.3      Warranty Reconciliation

After a claim has been submitted with a manufacturer reference number, it moves to the Warranty Reconciliation tab where it is listed as an outstanding warranty claim to be reconciled until payment has been received and applied to the claim.   From this screen, manufacturer payments can be added and matched to one or more outstanding claims.

To add a new payment, click the Add Payment button.



Select a payment type (Check, Credit, or EFT), a payment date, then enter the payment amount and payment reference number. After payment information in entered, click Add Claim.


Enter the manufacturer reference number (OE reference number) for the claim being paid and click OK.


On the next pop-up window, enter the claim payment amount and then distribute it among the labor / parts included in the claim payment. Check Partial Payment if a full payment is not being received (i.e. if the manufacturer will only pay $50 of $85 claimed and the warranty claim needs to be reconciled and finalized without receiving full payment). Click Reconcile to proceed.


Payments must be fully applied / reconciled before you can click Finalize.   When the difference between the payment amount received and the reconciled amount is $0.00, then click Finalize at the bottom of the screen.
 

Below is an example of a partial payment being reconciled.   A payment of $8 was received on the $15 claim.   Since the vendor is only providing a partial payment, the transaction can be finalized without receiving the full claim.


6.4      Warranty Audit

From the Warranty Audit tab, managers can review all warranty claim history and make changes to or undo processed claims.   Search results can be filtered by transaction date range, status, manufacturer, or using the search text field.   There is also an Export button that will download the currently displayed list of claims in an XLS file format that can be opened using Microsoft Excel.


Claims that have been processed and rejected can be returned to the inbox, and processed claims can be charged back to reverse them, or re-opened.   To do this, click on a claim number to drill-down and then look at the bottom of the screen for the appropriate command buttons (the buttons available vary based on the status of the claim).


6.5      Warranty Payments

The Warranty Payments tab displays a history of warranty payments received. Search results can be filtered by date range, type, manufacturer, or using the search text field.

Click on any blue hyperlinks, such as the check reference number, to drill-down and view more detail about a particular payment.

There is also an Export button to download the currently displayed list of payments in an XLS file format that can be opened using Microsoft Excel.


6.6      Email Notification List

The Email Notification List tab allows users to create a list of contacts who will be notified via email whenever an eligible warranty claim has been triggered.   Click Add Email to add contacts to your notification list.


7      Warranty Codes: Reason, Category, and Type

Optional codes for reject reasons, RFI reasons, claim categories, and miscellaneous item types can be set in the Things To Do list on the left-hand side of the Warranty Manager Screen:

Clicking on any of these links will open a similar pop-up window with an add button at the top right-hand corner.

Each time you click the green plus to add a new reason/campaign/type code, a new link will be inserted for adding the code and its description.


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