In almost all areas of business, the client is given a warranty on the work performed, parts installed or the goods sold.

Clients can apply for a warranty for different reasons: defective goods or spare parts (i.e. fault of the supplier), poorly performed service (fault of the technician), or other reasons. In any case, if you provide a warranty, you should replace the product or re-provide the service free of charge.

Presetting Your Account to Work With Warranty Work Orders

1. Use a different work order type for warranty cases.

A warranty work order is a new work order which means you don't need to edit or make changes to an old closed work order.

This is important for several reasons:

  • You can keep a record of warranty work orders and track their percentage of the total work order number.

  • You won't have a mess in calculating employees' wages.

  • It’s just not logical as you have already closed that work order and took payment from the customer. If you start to edit a closed work order (for example decreasing the total amount), the system will automatically offer to refund the customer. But you are not returning anything — you are redoing the work or changing the product for free!

If your account does not have this type of work order, you can create it yourself. Read more about adding work order types in this article.

2. Set a zero price.

Since we often take no money from the customer when we do warranty repairs, all work and parts must be added at zero price. For services, we simply edit the price to 0, and for stock items, we can use the “Zero” price.

Read more about creating and using a zero price in this article.

3. Set up payroll calculation for warranty work orders.

When creating or using warranty work order types, there are several scenarios for calculating employees' wages. Some companies reduce the payment to technicians for such work orders, some do not pay at all, and some want the cost of the part to be deducted from the wage if the breakdown was the employee’s fault.

To implement various scenarios, you can create different work order types, and set up different wage calculation rules for different work order types.

For example, there are three types of work orders: Warranty (technician’s fault), Warranty (reduced percentage), and Warranty (zero calculation).

To have the “Warranty (technician’s fault)” work order type with the cost of the part deducted from the wage of the employee, set up the following calculation rule.

Select the “To specialist for the works/services” rule, then specify the work order type “Warranty (technician’s fault)” and the % calculation method. Below we specify the calculation from Profit and set the reward to 100%. Be sure to check the “Account cost price of the products that were written off for the zero price”.

Thus, when you add a service and products to the work order at zero price, in the payroll report of the employee there will be minus an amount equal to the cost price of the part.

Important: This method of calculation will only work if there is a service with a price of zero in the work order, and this service has no cost price.

To make sure that the employee gets a smaller percentage or amount for the work in the warranty work order than in the original one, you should set up the following calculation rule.

Select the “To specialist for the works/services” rule and specify the “Warranty (reduced percentage)” order type and a calculation method. Specify the calculation from the Sum below and set the reward value.

Important: This method of calculation is suitable if you use a fixed amount of reward regardless of the cost of the work order. Because if you use zero prices for services and goods in the work order, then % of the profit on such work orders will always be 0 (zero).

As a result, when employees perform work on the usual work order, they get the standard reward. If employees work on a warranty work order, they get a reduced reward.

If you do not want your employees to either get any reward or have a payroll deduction for the work under warranty, then configure the following calculation rule.

Select the “To specialist for the works/services” rule and then specify the “Warranty (zero calculation)” order type and a calculation method. Below specify a calculation from the Sum or Profit and set the reward value to 0 (zero).

As a result, when an employee performs work on the usual work order, he or she will receive the standard reward. If the employee performs work on a warranty work order, he or she gets a zero reward.

Processing Warranty Work Orders

1. Find the closed work order the client refers to for warranty.

You can search for the work order by asset serial number, client’s phone number, work order number, or barcode. Learn more about searching for work orders in this article.

2. Click the “More” button and select a warranty work order type.

A new order creation window will open with the client and asset information already filled in. You only need to edit the fields if necessary and finish creating the work order.

Then you work with the warranty work order according to your processes.

As a result, when you work with warranty work orders as a different type, you’ll get:

  • a correct payroll calculation;

  • the ability to make different calculations for employees depending on the type of warranty;

  • analyze warranty work orders with work order reports or Company Insights report (how many there were, which employees are most often called for warranty and how much you lose on that, understand the reasons: fault of the technician, supplier, or something else).

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