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Working with Warranty Policies on Sold Goods

CRM.COM allows you enables its users to provide warranty policies Warranties to Physical Goods (traceable) sold to your customers. traceable Physical Goods sold to their customers based on configured Warranty Policies The process is automatic (without the interaction of the user)  and the main process is performed on adding the installed item to a Job.

A warranty may be applied when creating a Job of any Scope, given that a sold Traceable Physical good is being added on the Job.
In addition to this functionality,   when creating a job of  the system will 

While in all of the Job types a new warranty policy will be applied on the installed item (if applicable) and the installed item will be charged, in the case of creating a Swap Subscription Installed Item Job Type, while warranty will be applied on the new installed item (if applicable), the charging of the new installed item and the warranty period are dependent on the warranty policy of the existing installed item.
In greater detail:

no user interaction is required) and takes place when adding the Physical Good as sold to a /wiki/spaces/WIP/pages/10008551 of any Type. 

If in the future the customer must replace the Physical Good, a Job of Type 'Swap Subscription Installed Item' must be used (only Physical Goods that are provided on Subscriptions can be swapped). The System considers the Warranty Policies that apply on the existing Physical Good and determines whether or not to:

• Provide the replacement Physical Good free of charge
• Apply a new Warranty Policy for the replaced Physical Good
• Apply no Warranty Policy for the replaced Physical Good
• Transfer the Warranty Policy applied on the existing Physical Good to the new one.

Validations & Restrictions

When adding a new traceable physical good to a job, a warranty will be automatically added if the good is eligible.

The process is automatically executed given that:

• A Job of any scope is created with Installed Items defined as sold to the customers
  OR
• A Job of Swap Subscription Installed Item is created with Installed Items defined as sold to the customers, and no warranty/expired warranty exists on existing installed item
  OR
• A Job of Swap Subscription Installed Item is created with Installed Items defined as sold to the customers,  and Coverage Policy on existing installed item is set to: New Warranty
  AND

• Effective Warranty Policies exist in the system that are satisfied by the selection of items on the Job

Deciding which New Warranty Policy to apply

Many Warranty Policies may be set up in the system and consequently a physical good may be eligible to more than one. The system will automatically decide which policy to apply to the selected physical good based on the following logic

1. Find all Warranty Policies that:
   • Are included in the Job Type's Allowed Warranty Policies (if any are defined).
     If the Job Type does not include any Allowed Warranty Policies configuration, then no Warranty Policy can be applied
   • Have an Effective life cycle state 
   • Are not yet expired, i.e. their validity period has a future expiration date (if any is defined) 
   • The Unit of user who manages the sale is included within the Warranty Policy's Allowed Organisational Units.
     • If more than one warranty policies exists then the system will retrieve the one having the most recent Effective Date set which is equal or before the date of execution

Once the Warranty Policy to be applied is selected the following actions will be done

1. The system will:
   1. Set the warranty policy on the installed item
   2. Set the warehouse issue date equal to the date that the physical good was moved out of the warehouse 
   3. Set the warranty coverage period, based on the warehouse issue date and the related warranty's duration.
      The Warranty Remaining Duration is set to empty

Checking Coverage of Existing Traceable Physical Good when Swapping

The following steps describe how to check whether a Physical Good to be swapped is under Warranty, and if so, how to select the reason of replacement which will, in turn, determine if the new Physical Good will be charged or not.

1. Follow the steps described at Managing Jobs.
   AFFECTED PRODUCTS

   1. Specify the affected physical goodAffected Physical Good:
      If the Physical Goods's warranty can still cover the physical good Warranty still covers the Physical Good then the following related information is made available.

      1. Warranty Policy: Displays the goods' related warranty namename of the Warranty of the Good. 
         Click on the link to view the warranty applied Warranty.
      2. Warranty expiration date Expiration Date:Displays when the good's warranty  Displays the date on which the Warranty of the Good expires. 
   2. Coverage Reason: Select the Coverage Reason from the drop down list.
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      1. Covered: Once the reason Reason is specified the coverage reason Covered value is set. The value can either be Yes or No
         This will affect the billing of the new physical good. If Covered is set to No then the be 'Yes' or 'No'.

         1. No  = The new Physical Good will

         be billed
         If Covered is set to Yes then the

         1. be charged

         2. Yes  = The new Physical Good

         it will

         1. will not be

         billed

         1. charged
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2. Proceed with providing the rest of the information required to save the job Job as explained at Creating Jobs for Swapping Installed Items of a Subscription

Transferring Warranty Policy to new Traceable Physical Good

The process is automatically executed given that:

• A Job of Swap Subscription Installed Item is created with traceable physical goods defined as sold to the customers, 
  And
• Coverage Policy on existing traceable physical good is set to: Carry Over Remaining Duration

Deciding the Warranty Period to be applied on the new Traceable Physical Good

Carrying Over existing Warranty Policy 

The following steps will be carried by the system

1. If the Replacement under Coverage Policy is equal to Carry Over Remaining Duration then the system will
   • Set the warranty policy equal to the warranty policy of the previous traceable physical good
   • Set the warranty remaining period equal to the warranty policy duration minus the days that the previous installed item was under warranty.
     The remaining coverage period is calculated in days.
   • Set the warehouse issue date equal to the date that the item was moved out of the warehouse

Applying New Warranty

The following steps will be carried by the system

1. The warranty information is set in the same way as in selling a new Traceable Physical Good

Applying No Warranty

The following steps will be carried by the system

1. under Managing Jobs.

Deciding the Warranty Policy, to be applied on the new Physical Good when Swapping

When Swapping a Physical Good the System must determine the Warranty Policy of the new Good.  The Warranty Policy depends on the Replacement under Coverage Policy applicable for the specified Coverage Reason of the existing Physical Good under Warranty.

Replacement under Coverage Policy is a field available for each Coverage Reason, whose setting affects the Warranty Policy on the new Physical Good.  

Replacement under Coverage Policy has three possible values:

• Carry Over Remaining Duration
  • The Warranty Policy is carried over to the new Physical Good.
  • The remaining Warranty period is calculated and applied to the new Physical Good.
• Apply New Warranty
  • A new Warranty Policy is applied as in the case of a new Traceable Physical Good sold.
• No Warranty
  • No Warranty Policy is applied to the new Physical Good.

The diagram below displays how the Warranty Policy on the existing Installed Item (II) affects the Warranty on the new item, during a Swap Installed Item Job Type.

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Identifying from which

Warehouse the item will be removed

Each time an installed item is being swapped the system will need to decide from and to which warehouses, items will be moved from and to based on Configuring Inventory Management Definitions. The decision is also affected based on a Physical Good is swapped the System must determine the Warehouses that Goods will be moved to and from, based on Configuring Inventory Management Definitions and the Warranty coverage.

The following diagrams shows the warehouses from and to where installed items display the Warehouses that Installed Items will be moved according to and from, depending on whether or not they are Covered or not by a Warranty.

Warehouse Transaction Movements when the swapped Physical Good is provided free of charge

• Covered By Warranty:  Coverage Reason Includes CoverageCoverage 

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Warehouse Transaction Movements when the swapped Physical Good is not covered by Warranty

Not Covered By Warranty: 

• Coverage Reason does no includes not include Coverage
• Warranty on existing item has expired
• No Warranty exists

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