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Former Member September 2, 2014
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Warranty Claim Management in SAP 44 Likes
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Introduction: Warranty management in SAP plays a crucial role across industries since it allows automatic tracking of product/services under warranty period and as well re-imbursement of claim expenses with in validity. This document would provide brief about Warranty Management features available in SAP and related technical configuration to implement Warranty Management solution in SAP. Scope of Warranty Management Solution in SAP: SAP Warranty management considers following aspects: It identifies the products/services under warranty Validate the authenticity of warranty claims Validates whether the product/service issue highlighted by customer falls under warranty Define the effects of warranties on pricing & invoicing Monitor expenses incurred under due to warranty issues Warranty Process Flow: For reference purpose, if we consider automotive industry, a warranty claim will occur when a repair is being carried out on a vehicle or for a return of a defective part (from dealer stock or sold and returned to the dealership). Usually, Vehicle repairs are for vehicles owned by retail customers and are for vehicles under active warranty. The dealer who carries out the repair will create a warranty claim. The warranty claim will be checked by warranty assessor and will be reimbursed for the labour and/or material and/or sublet expense. Here is the basic example of business process cycle where an automotive part should pass though when it comes for warranty claims.
1. Vehicle Consumer come into dealership 2. Dealer determines if product/service defect is under valid warranty 3. If yes, dealer files warranty claim 4. Warranty assessors may review claim for accuracy https://blogs.sap.com/2014/09/02/warranty-claim-management-in-sap/
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5. Claim is either approved or rejected Follow
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6. If approved, claim is processed through to Finance and dealer is reimbursed Configuration Steps to Implement Warranty Management Solution in SAP: Primary focus of this document is about configuration guide for Warranty Management solution in SAP. Similar to SPRO, all warranty related configuration can be carried out via transaction OWTY.
Following step-by-step configuration to be carried out for warranty claim management in SAP:
1. Define Warranty Claim Type 2. Assign Number Range for Claim Type 3. Define Decision Codes 4. Define Pricing for warranty claim 5. Maintain Pricing Condition Records 6. Define Action Matrix for Claim Processing 7. Define GL Account Determination Procedure for Claim Processing 8. Assign Pricing, action matrix and GL Account Determination Procedure to Claim Type 9. Implement Validation/Substitution for claims (Optional) 10. Define Output Determination for claim credit note 11. Maintain Output Condition Records Each step is explained in detail in below section: 1. Define Warranty Claim Type Based on business requirement different type of claims can be configured. Refer following path for configuring the same. OWTY ==> Warranty Claim Processing ==> Define Warranty Claim Types.
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2. Assign Number Range for Claim Type Similar to other Sales Documents, number range to be assigned for warranty claim document. Refer following path for configuring the same. OWTY ==> Warranty Claim ==> Processing ==> Define Number Ranges for Warranty Claims.
Create a Group for assigning Number Range:
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Assign Claim Type to the Group: Follow
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3. Define Decision Codes Decision codes are used to attach status code based on different action done on those claims. E.g. once claim is approved, decision code XX – Accepted can be attached to the claim. To define decision codes, refer following configuration path. OWTY ==> Warranty Claim ==> Processing ==> Warranty Claim ==> Define Decision Codes.
4. Define Pricing for warranty claim Every warranty claim should have a pricing structure to determine how much value to be reimbursed to dealer when product/service to be repaired within warranty period promised by the company. Similar to configuration of pricing procedure (e.g. definition of access sequence, condition type, pricing procedure etc.) in the area of Sales and Distribution, warranty pricing procedure configuration follows the same process. To define pricing, refer following configuration path. OWTY ==> Warranty Claim Processing ==> Pricing.
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Example: Warranty pricing procedure WT0002 available from Standard SAP.
5. Maintain Pricing Condition Records Similar to SD pricing condition records, warranty pricing condition records can be maintained via Transaction WYP1/WYP2/WYP3. To maintain conditions records Please refer following SAP menu path. SAP Menu ==> Logistics ==> Customer Service ==> Service Agreements ==> Warranty Claim Processing à Master Data ==>Condition Records for Pricing.
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6. Define Action Matrix for Claim Processing Action Matrix is a consolidated matrix of different actions/activities which can be carried out to a claim document at any given moment of time and also the consequences once any action is executed. Action matrix primarily consists of different actions and related status to it. Refer details about Action and Processing Status as mentioned below. Action: Every action does some processing and the processing logic is written is related Function Module attached to it. For example, standard action T041 has been defined as Elementary Action and Function Module WTY04_OC_POST_AC has been attached which would help to post credit memo for the claim amount. To define action, follow below configuration path. OWTY ==> Warranty Claim Processing ==> Control Data ==> Processing Control ==> Define Actions.
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Refer Attached Function Module:
Processing Status: After every action, claim gets a new status to identify every stage of the warranty claim. During definition of Action Matrix, these statuses would be used. To define status, follow below configuration path. OWTY ==> Warranty Claim Processing ==> Control Data ==> Processing Control ==> Define Processing Statuses.
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Once Action and Processing Statuses are defined, action matrix can defined based on business requirement. This matrix would suggest what all activities (Claim Check, Claim Approval, Claim Reject etc.) can be done on a particular warranty claim and after completion of those action what would happen to the same claim document. To define action matrix, please following below configuration path. OWTY ==> Warranty Claim Processing ==> Control Data Processing Control ==> Define Action Controls.
Example of Standard Action Matrix is AP02.
Above given example (highlighted row), matrix suggests that for a claim document we can perform action T060 (via attached Function Module to it) only if the claim status is B002 and once we complete action T060, claim would have status B060. https://blogs.sap.com/2014/09/02/warranty-claim-management-in-sap/
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7. Define GL Account Determination Procedure for Claim Processing Follow
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Every warranty claim should have account determination procedure attached to it to determine right GL account for posting claim expenses. Similar to configuration of Revenue Account Determination Procedure (e.g. definition of access sequence, condition type, pricing procedure etc.) in the area of Finance, warranty GL Configuration procedure follows the same process. To define GL determination procedure, refer following configuration path. OWTY ==> Warranty Claim Processing ==> Revenue Account ==>Determination.
Example of Standard GL Determination procedure is KOFI00.
8. Assign Pricing, Action matrix and GL Account Determination Procedure to Claim Type Pricing Procedure, Action Matrix and GL Account Determination procedure can be assigned to a claim type. To assign pricing procedure, action matrix and GL determination procedure, refer following configuration path. OWTY ==> Warranty Claim Processing ==> Define Warranty Claim Types.
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9. Implement Validation/Substitution for claims (Optional) Validation and Substitution rules are similar functionality as available in the area of Finance. During warranty claim processing, if there is any business requirement to perform certain validation OR to substitute certain values as requested by business, these rules can be implemented. Implementation of Validation & Substitution is exactly similar to the functionality available in Finance Area. To implement validation and substitution please refer following configuration path. OWTY ==> Warranty Claim Processing ==> Control Data ==> VSR Checks.
10. Define Output Determination for claim credit note In case business has requirement to have an output (Print/Mail) for warranty credit notes, output determination procedure needs to be configure similar to output determination in SD area. Only difference here is, output type is assigned to FI documents generated for the claim. To implement output/message determination for warranty please refer following configuration path. OWTY ==> Warranty Claim Processing ==> Message Determination.
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11. Maintain Output Condition Records Similar to SD output condition records, warranty message condition records can be maintained via Transaction WYN1/WYN2/WYN3. To maintain conditions records please refer following SAP menu path. SAP Menu ==> Logistics ==> Customer Service ==> Service Agreements ==> Warranty Claim ==> Processing ==> Master Data ==> Condition Records for Message Determination.
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Assigned tags PLM Enterprise Asset Management (EAM)/Plant Maintenance (PM) |
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34 Comments You must be Logged on to comment or reply to a post.
Hidayathulla Hasan September 20, 2014 at 12:45 am
Excellent uttam!!!!
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This was my much awaited topic in EAM on SCN. Follow
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I searched on this topic on di erent forums but couldn’t serve my purpose. Bookmarked and liked.
Thank$ Hidayath Like(0)
Jogeswara Rao K September 20, 2014 at 2:11 am
Very Good Documentation Uttam ! Like(0)
Former Member | Post author September 26, 2014 at 4:03 am
Thanks You. Like(0)
vemuri santosh kumar September 20, 2014 at 2:44 am
Thank you for sharing this document Like(0)
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September 21, 2014 at 3:52 am
Good One Like(0)
Navaneetha Krishnan September 22, 2014 at 5:04 am
Hi Uttam, Pretty good document for con guring the basic Warranty processing. To my knowledge we use the concept of actions and action matrix only in IS-Auto. So I have some queries, if you can help me to understanding these things, i will be very happy. 1. Is the warranty processing be used in other kind of industries (consumer durables) using the concept of actions and action matrices. 2. Also can you just post the sequence of transactions we have to do once these con gurations are done (like warranty order ….etc) so that we can understanding how the business process makes use of this con guration. Thanks in advance for this. Like(0)
Former Member | Post author September 22, 2014 at 5:29 am
Hi Navaneetha, I have worked on this topic for AUTO domain only.For AUTO domain, we have used Object as VELO but there are other options/objects available like Equipment, Functional Location. I would suggest to explore these option which are related consumer durable. Regarding Transactions, for warranty claim its only Claim creation and then through action matrix customer gets created directly into Finance though FI Credit Memo. I am not if I have answered your queries. Please let me know if you need further details. Best Regards Uttam Palui Like(0) https://blogs.sap.com/2014/09/02/warranty-claim-management-in-sap/
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Navaneetha Krishnan September 22, 2014 at 6:16 am
Thanks for updating Uttam. Like(0)
Chintan Budhbhatti September 23, 2014 at 7:44 am
Uttam Palui, Awesome document….very nicely explained….. Need to con gure on my IDES…… Great work….Thumps up!!!! Chin2. Like(0)
Former Member | Post author September 26, 2014 at 4:01 am
Thanks Chintan Like(0)
Lokesh Ojha September 23, 2014 at 12:29 pm
thanks for docx uttam …really gr8 wrk….. Like(0)
Former Member | Post author September 26, 2014 at 4:01 am
Thanks Lokesh https://blogs.sap.com/2014/09/02/warranty-claim-management-in-sap/
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Former Member September 30, 2014 at 11:08 am
Nicely written document Uttam!!!! you explained the processes thoroughly!!!! Like(0)
Rahul Prakash October 1, 2014 at 5:11 am
Good work Uttam… Regards, Rahul Like(0)
Former Member | Post author October 6, 2014 at 9:38 am
Thanks Rahul. Like(0)
Arvind Pereira October 1, 2014 at 5:39 am
Hi Uttam, You have covered features in SAP along with related technical con guration to implement Warranty Management solution, good work for EAM. thanks Arvind Leo Pereira Like(0)
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October 6, 2014 at 9:38 am
Thanks Arvind. Like(0)
Kashi Yadaram October 6, 2014 at 5:04 pm Excellent explanation! liked your approach of explaining from business scenario through con guration. Like(0)
Former Member | Post author October 7, 2014 at 5:28 am
Thanks Kashi Like(0)
Caetano Almeida October 8, 2014 at 5:38 pm
Nice document. Thanks for sharing! Like(0)
Former Member | Post author March 27, 2015 at 4:48 am
Thanks Caetano. Regards Uttam Like(0)
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October 24, 2014 at 11:06 am
Hi Uttam, Thank you for sharing such an informative document. I am interested in doing traning in SAP For Auotmotive. Please suggest me to go further in this…. Regards, Vivek. Like(0)
Former Member | Post author March 27, 2015 at 4:50 am
Thanks Vivek. Please try exploring VMS node under Logistics Execution. This is used by Automotive Industry. Regards Uttam Like(0)
Anand Rao October 27, 2014 at 1:11 pm
Hi Uttam_Very good document! It covers both conceptual explanation and con guration guidelines! Like(0)
Former Member | Post author March 27, 2015 at 4:48 am
Thanks Anand. Regards Uttam Like(0)
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October 29, 2014 at 7:47 am
Good documentation Uttam. Like(0)
Former Member | Post author March 27, 2015 at 4:49 am
Thanks Ravi. Regards Uttam Like(0)
Former Member March 31, 2015 at 7:43 pm
Nice document, Uttam. Can you tell me if it’s possible to use any of the Warranty Claim functionality if you’re not using CS/SD and just have PM con gured? For example, if I want to return a purchased item that has broken under warranty to the vendor. I’ve read that the Warranty Claim can be used for a vendor warranty, but it still seems like the process is customer-centric and CS is needed for this. Any advice? Thanks! Paul Like(0)
Former Member | Post author April 7, 2015 at 9:03 am
Hi Paul, I have NOT explored that area but if you try creating claim using standard SAP con guration, you can see that you can manage claims attaching to Equipment/Functional Location etc. I would suggest please explore that option. I have used Vehicle Object for my case. Hope it helps. https://blogs.sap.com/2014/09/02/warranty-claim-management-in-sap/
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Uttam Palui Like(0)
Former Member April 22, 2015 at 3:37 am
Very Good document. Thanks for sharing. Like(0)
Gibson Nyarugwe April 22, 2015 at 7:55 am
Hello Experts I saw this document highly valuable, can someone kindly provide how can claims management be done on the side of the customer, say in the automobile example given above, the EAM or PM a part got damaged and still covered under the warrant or guarantee. Can this be triggered on the equipment being maintained, how can this be loaded to avoid the customer going to a new supplier where they supposed to approach the supplier, how can alerts be generated in the SAP system? Regards Gibson Like(0)
Former Member October 31, 2016 at 3:42 pm
Is LO-WTY just for automotive business? Like(0)
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June 21, 2017 at 5:16 am
Hi Uttam Palui, Appreciate your e orts for sharing valuable information. I shall be thankful to you if could share any implementation /roll out Questionnaire available for warranty service. Thanks in advance. Warm Regards Nataraju
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Loganathan Balakrishnan May 11, 2020 at 6:23 pm
Hi Uttam !! very good and detailed presentation on the Warranty and very useful for PM/EAM module. Thanks!! for the documents. Loganathan Balakrishnan Like(0)
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