--- title: "Process a Warranty Claim" canonical: "https://kb.myframeworks.com.au/space/CO/30514122/Process%20a%20Warranty%20Claim" format: markdown --- # Overview Warranty claims allow you to manage customer returns while maintaining accurate stock levels during the supplier approval process. By using an internal warranty customer account, you can track the stock movement and financial impact separately until the supplier confirms the credit. ### Before You Begin Ensure you have: - An internal warranty customer account set up in Frameworks - The faulty product details and original sale information - Supplier warranty claim requirements and contact details ## Process Overview The warranty claim process involves several transactions to ensure accurate stock and financial records: 1. Process the customer return and credit their account 2. Create a supplier credit claim 3. Record the stock allocation to warranty processing 4. Wait for supplier approval 5. Complete the process based on supplier response (credit only or replacement stock) --- ## Step 1: Process the Customer Stock Return Create a stock return to credit the customer and return the product to stock. 1. Navigate to **Sales > Transaction Processing > Credit Notes**. 2. Create a new credit note for the customer with the faulty product. 3. Enter the product with a **negative sell value**. 4. Complete and post the credit note. **Result**: The customer receives a credit on their account, and the quantity returns to stock (Qty +1). ## Step 2: Create the Supplier Credit Claim Create a stock return to claim credit from the supplier. 1. Navigate to **Purchasing & Receipting > Transaction Processing > Purchase Orders**. 2. Create a **Stock Return **for the supplier with the faulty product. 3. Enter the product with a **negative cost value**. 4. Submit the credit claim to the supplier. **Result**: The credit claim is sent to the supplier. No stock movement occurs at this stage. ## Step 3: Allocate Stock to Warranty Processing Record the stock movement to your internal warranty account. 1. Navigate to **Sales > Transaction Processing > Point of Sale** (or Sales Orders). 2. Create a sale for the **Internal Warranty Account** customer. 3. Add the faulty product to the sale. 4. Set **No GST** on the transaction. 5. Complete the sale. **Result**: The quantity is removed from available stock (Qty -1) and allocated to warranty processing. ## Step 4: Wait for Supplier Approval Allow time for the supplier to review and respond to your credit claim. The approval process timeframe varies by supplier. ## Step 5: Complete Based on Supplier Response ### a. If the Claim is Rejected 1. Close the supplier stock return without receipting. 2. Leave the stock allocated to the internal warranty account. 3. Decide on alternate resolution with the customer. **Result**: No stock movement occurs. The original customer credit remains on their account. ### b. If the Claim is Approved Continue to Step 6 to complete the supplier credit process. ## Step 6: Process the Supplier Credit (Approved Claims) Receipt the negative stock return and create the matching invoice. 1. Navigate to **Purchasing & Receipting > Transaction Processing > Stock Receipting**. 2. Receipt the stock return (negative quantity). 3. Navigate to **Payables > Transaction Processing > Invoice Maintenance**. 4. Create a matching supplier invoice with the **negative value**. 5. Post the invoice. **Result**: A credit appears on the supplier account, and the quantity is removed from stock (Qty -1). ## Step 7: Return Stock from Warranty Processing Create a stock return for the internal warranty account to clear the allocation. 1. Navigate to **Sales > Transaction Processing > Credit Notes**. 2. Create a credit note for the **Internal Warranty Account** customer. 3. Add the product with **No GST**. 4. Complete the credit note. **Result**: The quantity returns to available stock (Qty +1). ## Step 8: Finalise the Warranty Claim ### a. If the Supplier is NOT Replacing the Stock 1. Apply the supplier credit during the next payment run. 2. The warranty claim is complete. **Result**: No further stock movement. The supplier credit offsets future purchases. ### b. If the Supplier IS Replacing the Stock 1. Navigate to **Purchasing & Receipting > Transaction Processing > Purchase Orders**. 2. Create a purchase order for the replacement product. 3. Set the order value equal to the supplier stock return value. 4. Receipt the stock when it arrives. 5. Create and post the matching supplier invoice. **Result**: A debit appears on the supplier account, and the replacement quantity is added to stock (Qty +1). --- ## Summary of Stock Movements | Stage | Action | Stock Impact | | --- | --- | --- | | 1. Customer Return | Credit Note | Qty +1 | | 2. Supplier Claim | Stock Return Created | No change | | 3. Internal Allocation | Sale to Warranty Account | Qty -1 | | 5a. Rejected Claim | Close Stock Return | No change | | 6. Approved Credit | Receipt Negative Return | Qty -1 | | 7. Clear Allocation | Credit to Warranty Account | Qty +1 | | 8a. Credit Only | Apply Credit | No change | | 8b. Replacement | Receipt New Stock | Qty +1 | --- # Additional Information > ✅ Refer to the following pages for more information about related processes: > ✅ > ✅ - **Stock Returns**: For more information about processing customer returns, refer to [https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/30508400](https://sterlandsupport.atlassian.net/wiki/spaces/CO/pages/30508400). > ✅ - **Credit Claims**: For more information about supplier credit claims, refer to [https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28377950](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28377950).