DealersEdge Professional Forums

How is everyone handling invoicing warranty after market parts, Delco batteries,and warranty tires on RO's?
We have been leaving the cost as is, and selling them @ $0. But then I was crediting my 242 account when I received credit un less it was tires the is was to 243...MISTAKE!
Double dipping the accounts, making the office ledger off from what my inventory showed.
Our controller has now set up a receivable account, like an outside warranty account. So now we are supposed to sell the part on the RO @ cost, and when the RO is closed the SA will direct the sale to the receivable account. When I receive the credit for the part I will direct that to the receivable account to wash that out.
This seems logical to me, but I want to know what others are doing, maybe there is a better solution.

Not sure I understand. However, Delco warrantied batteries are billed out at zero cost. I take paperwork to battery distributor and get credit. I code receipt <242> and turn into accounting. Pretty simple.
I havent had to do a tire warranty in a while but what I do. Is the same as above. Keep copies of paperwork (pending credit file) and when I receive credit through GM parts invoicing, I turn it into accounting an voila.

batteries I do at $0 cost $0sale and get a credit from the battery distributor and tires I sell as a loss such as michelin prorate as what the customer pays then whatever we get back gets credited to the sale account so it looks like a loss at first until the credit is received

I have never billed out a battery for a Delco battery warranty. The warranty is only good from the original customer pay purchase, so billing out a battery could imply to the customer that the battery warranty starts over when they see a part number billed out on their warranty RO.

i just order a new battery for stock and don't receive it. i match the credit for the returned defective battery with the new battery purchase to zero out accounting.

Parts007 wrote:I have never billed out a battery for a Delco battery warranty. The warranty is only good from the original customer pay purchase, so billing out a battery could imply to the customer that the battery warranty starts over when they see a part number billed out on their warranty RO.

i just order a new battery for stock and don't receive it. i match the credit for the returned defective battery with the new battery purchase to zero out accounting.

Same practice here for the same reason.

Parts007 wrote:I have never billed out a battery for a Delco battery warranty. The warranty is only good from the original customer pay purchase, so billing out a battery could imply to the customer that the battery warranty starts over when they see a part number billed out on their warranty RO.

i just order a new battery for stock and don't receive it. i match the credit for the returned defective battery with the new battery purchase to zero out accounting.

I was told by the Delco distributor that I had to show the part number billed out on new RO or counter for them to issue an exchange warranty. "replaced under delco warranty" is in the comments portion
of the customers paperwork. Never had a customer assume that the warranty starts over just because it was listed on the ticket.

I have always billed out something like that at zero cost and zero sale price. I like that it creates a "paper trail" that the part was actually replaced. As far as the warranty being applicable to the original sale, you should be covered, because the transaction record will reflect the zero sale. If the customer were to bring up that the part was replaced, their invoice would also reflect the zero sale price.

scott2112 wrote:
I was told by the Delco distributor that I had to show the part number billed out on new RO or counter for them to issue an exchange warranty. "replaced under delco warranty" is in the comments portion
of the customers paperwork. Never had a customer assume that the warranty starts over just because it was listed on the ticket.

That must be your WD. The two WD's i have worked with during my career never ask for a current invoice with battery billed. I always give them a copy of the original receipt but they don't really look at that unless the date code on the battery is close.

I have always billed out something like that at zero cost and zero sale price. I like that it creates a "paper trail" that the part was actually replaced. As far as the warranty being applicable to the original sale, you should be covered, because the transaction record will reflect the zero sale. If the customer were to bring up that the part was replaced, their invoice would also reflect the zero sale price.

When I warranty a customer pay Ac Delco battery I sell it to the repair order at cost and sell at $0 . In the note field of the part number I put the date the original purchase warranty expires . example: battery warranty expires on 11/25/22