Customer and Vendor Warranty

[Former Member]

We are configuring Customer and Vendor Warranty scenario .

Create a Installed base with Customer and Vendor Warranty ,  Say a Car fitted with all the parts .

Customer Warranty

Customer Comes in for a Servicing and and found that Air bag is having problem and it should be replaced . The Object or Reference  object is covered under Warranty . So Service Order is made and for the parts , Air bag and the labor charges for the fitting of Air bag . Under the Warranty the Product is wholly covered , so 2 line items gets created as the Air bag is under Warranty , 0 value is picked and labor charges is picked . is confirmed and Billing is done  .

The Service Order is confirmed and Billing is done .

Vendor Warranty

As the Air Bag is faulty and Vendor Warranty is covered so the car manufacturer should also be compensated for the Air Bag as it is FAULTY nad covered under Warranty.

In the Assignment Block - Schedule new Action , here we can Create a new Claim Process by running ACTION - Creation of Warranty Claim from config. - SAVE IT and we can

see in Transaction history items and qty and Warranty assigned to Installed Base .In Partner Function we can see the Vendor determined by the system . Vendor should be

Bill to Party and Payer .

In Communication Status , negotiation between Vendor goes on with EACH COMMUNICATION STATUS then after certain status it is COMPLETED and CLOSED .

Then from the ACTION - CREATE BILLING DOCUMENT ( DEBIT MEMO ) FROM RELATIONSHIP SUB ITEMS wen schedule it and both the Product Id and qty gets copied .

Billing gets generated under BILLING -> BILLING DUE LIST ITEMS , and it can be settled by CREDIT MEMO BY THE Vendor .

IS MY UNDERSTANDING CORRECT ?

My question are

1) How is Vendor determined ? Is it in the Product Master data and in under Partner Function we got to input as Vendor xxx and Vendor is determined .2) How is this Pricing Procedure and Condition records comes into account  as in the Master data the Price will be there and Pricing can be determined from there .

Pricing Procedure for Warranty Claims is - WT0002 and Condition records WP1/WP2 for generation of Condition records .

3 ) GL determination Procedure for Claims - Standard GL determination Procedure is KOFI00 . Why do we  need GL Determination , If the Settlement in in CREDIT MEMO , or its only for Claim reimbursement in CASH .

4) As Air bag is faulty ,we need to send it to Vendor . Do we need to create a Sales Order in ECC for the Debit Memo Item .

In VA01 , What will be the Order type say for example we configure Order type RE for return and so on .

[former_member222142 · Accepted solution]

Hi Sanjeev,

a customer warranty is a promise that your company made to the customer, in contrast of the Vendor/Supplier warranty which is made by the  Vendor/Supplier to your company. To be able to maintain warranties you must create the warranty as products in the system. Here are the importants information are stored like Warranty Start- and End Date; Coverage terms for parts, labor, and travel;

Influence of pricing and financial management by means of an accounting indicator; etc...

In installed base management, you can assign warranties to products, installed base components, or objects.

When you create a business transaction in service, such as a service confirmation, complaint, or service order, the system automatically checks whether valid warranty information is available for the reference object of the transaction, and whether claims on warranty services are justified.

The system checks autmatically during creation of the service order wheter a warranty exist for the product, object or Installed base component.

A Warranty Claim is an entitlement that a dealer has in relation to a product

of a supplier or manufacturer (the reimburser). The Warranty Claim is used

to represent the entire Warranty process from creating a Warranty Claim, the

technical analysis and relevant follow-up process steps, through to the statistical

evaluation.

Some of the relevant follow up processes can be

• Dealer returns the defective products

• Dealer sends invoice to vendor with reference to warranty claim

• Dealer gets a substitute delivery

The prerequisites for a Warranty claim are:

Partner Function Vendor needs to be assigned to the reference object.

A vendor warranty must exist and be assigned to the reference object.

The system automatically checks during creation of a service order to see if a

warranty exists for the product, object, or the installed base that has been entered.

A warranty check log contains information on checks that have been performed

regarding existing warranties for a selected service product, including the result

and status of the checks performed.

More information are available for the topic Warranty under Link:Warranty Management - SAP Library

I hope these information will help you to understqnd the Warranty concept in SAP CRM 7.0.

Best Regards

Gerhard

[Former Member · Accepted solution]

Thanks Gerhard for quick response .

I am quite aware with the process of Customer  Warranty but not too much clear on Warranty Claim or Vendor Warranty .

But the important  prerequisites for a Warranty claim are known also :

Partner Function Vendor needs to be assigned to the reference object.

A vendor warranty must exist and be assigned to the reference object.

BUT MAJOR QUESTION ARE OR AREA OF CONCERN IS :

1) How is this Pricing Procedure and Condition records comes into account  as in the Master data the Price will be there and Pricing can be determined from there .

Pricing Procedure for Warranty Claims is - WT0002 and Condition records WP1/WP2 for generation of Condition records .

2 ) GL determination Procedure for Claims - Standard GL determination Procedure is KOFI00 . Why do we  need GL Determination , If the Settlement in in CREDIT MEMO , or its only for Claim reimbursement in CASH .

3) As Air bag is faulty ,we need to send it to Vendor . Do we need to create a Sales Order in ECC for the Debit Memo Item .

In VA01 , What will be the Order type say for example we configure Order type RE for return and so on

[former_member222142 · Accepted solution]

Hi Sanjeev,

please do not mistake the warranty claim (Transaction CLMA in Standard) with the logistic process (Complaint & Returns)

The Warranty claim is a own transaction type in CRM where you have the own partner determination process, pricing determination,etc....

The usualy business process as follows (in case of Vendor warranty).

In case of the creation of a CRM serviceorder or CRM service confirmation  the system recognize autmatically the valid  Warranty. The Warranty enttitlement check can be Action based, automatically or manually triggered. In these check the Vendor warranty determination and Vendor determination take place as well on cRM side.

This simplifies the creation of Warranty Claim since all of the data (for example, partners, products, quantities, and prices) is copied from the preceding document (via actions or copying control).

The CRM document Warranty creation could reference to a CRm Serviceorder, CRM Complaint, CRM Service Conformation or without any reference.

Now to your question, your mentioned partner profile, pricing procedure come from the ECC SYstem, please note the business process take place on the CRm System and not on the ECC system. Only the last document the Debit Memo request are transfered to the ECC system. Please consider the pricing partner determination in the CRM Standard transaction type CLMA, which is used in the standard to determine the relevant partner (incl. Vendor).

The relevant ttransaction types in CRM Standard are

CRMW - Inbound Warranty Claim

CLMA - Outbound Warranty Claim.

the reelvant item categories are:

CLMP -  Outbound Warranty Claim item

CLMF  -  Debit Memo item for Warranty Claim. 

To your question 3 - The logistic process of the return, please consider the explanation of the CRM Complaints and return processing under Link: Complaints and Returns - SAP Library

I hope I was able to explain you the Warranty procedure rudimentary.

Best Regards

Gerhard

[Former Member · Accepted solution]

Thanks again for the quick response and for confirmation that for Logistics and Return Process we got to follow the CRM Complaints and Return Process ??

We have a Transaction type , CLMA and  where we  have our  own partner determination process, pricing determination,etc .

it calls Item Category CLMP - Warranty Claim Item  - ACTION - CREATION OF WARRANTY CLAIM FROM CONFIG

and CLMF - Billing Relevance - Debit Memo for Warranty Claim with ACTION - CREATE BILLING DOCUMENT ( DEBIT MEMO ) FROM RELATIONSHIP SUB ITEMS

I understand the process where " your mentioned partner profile, pricing procedure come from the ECC SYstem, please note the business process take place on the CRm System and not on the ECC system. Only the last document the Debit Memo request are transferred to the ECC system. Please consider the pricing partner determination in the CRM Standard transaction type CLMA, which is used in the standard to determine the relevant partner (incl. Vendor)  " .

Would you mind explaining me the

1) The relevant transaction types in CRM Standard are

CRMW - Inbound Warranty Claim

CLMA - Outbound Warranty Claim.

AND

IC - Incoming claimant

OC: Outgoing claimant

OV: Outgoing claimant

IV : Incoming Vendor.

2) How does this Pricing Procedure for Warranty Claims  - WT0002 and Condition records WP1/WP2  generated   .

In Item Category ,  CLMF - Billing Relevance - Debit Memo for Warranty Claim under Pricing data

Pricing Relevance - yes

Statistical Value -  No cumulation - Values can be used  statistically  

Pricing Indicator- Active

Pricing Process - Standard

Condition Type

Do we need to configure Billing Type - L2  , or the Action -  Debit Memo for Warranty Claim will do the needful .

3) GL determination Procedure for Claims - Standard GL determination Procedure is KOFI00 . Why do we  need GL Determination , If the Settlement in in CREDIT MEMO or substitute delivery  , or its only for Claim reimbursement in CASH .

[former_member222142 · Accepted solution]

Hi Sanjeev,

For Question 1:

consider the documentation of Warranty Claim Processing and the continuative chapter  under Link: Warranty Claim Processing - SAP Library

which explain the process and the relevant elements in detail.

For Question 2:

after my knowledge the pricing schema WT002 are unknow in CRM for Warranty claim the pricing schema 13CLMA are used in Standard, after my knowledge the WT002 is the pricing schema on ECC side, which isn't relevant in CRM. I'm not a pricing expert how the WP1/WP2 are mapped in these pricing schema. Further information could availalble in the CRM pricing forum.

For Question 3:

analog to Question 2 -  KOFI00 are unknown on cRm Side, you had to setup the GL determination for the Warranty Claim, which of course must posted in the ECC financial system.

Best Regards

Gerhard

[Former Member · Accepted solution]

Thanks for sending me the link to fill the gap , If I have anything regarding the Warranty Claim process . I will surely go through it .

I was also not able to figure out that Pricing Procedure - WT002 , For Service its 13SRVC - Pricing Procedure which is used .

KOFI00 is from the ECC side where GL determination takes place . I was also not clear so I thought somebody can throw some light  in the GL determination .

I would like to close the Thread awarding  points 

Do we need to configure Billing Type - L2  , or the Action -  Debit Memo for Warranty Claim will do the needful ?

[Former Member · Accepted solution]

Hi Gerhard ,

The Pricing Procedure WT002 and the condition record are in ECC side when we have Warranty in CS and settled through SD , FI and PM . - LO-WTY

Customer Service (CS) - SAP Library

Pricing - Pricing - Customer Service (CS) - SAP Library

Revenue Account determination - Revenue Account Determination - Customer Service (CS) - SAP Library .

But in our case Customer and Vendor Warranty determination is done in CRM  .So , the Revenue Determination and Pricing Procedure WT002 does not arise .

But I have a last question which are more related to WARRANTY REPLICATION  .

While Claiming Dealer sends invoice to vendor with reference to warranty claim by  CREATE BILLING DOCUMENT ( DEBIT MEMO ) FROM RELATIONSHIP SUB ITEMS . It should be compensated by

SUBSTITUTE DELIVERY  or CREDIT MEMO or FREE GOODS in ECC and and RETURN LOGISTICS takes place in ECC as well .

My question are

1) Do I need to create Billing document , say Billing Type and Billing Item Category customizing in SAP CRM as we are Billing to vendor for the damaged goods  .

2) Can you please throw some light on Warranty replication scenario in ECC .