SAP Warranty Claims Management
Provide fast, efficient claims management and reduce warranty costs with SAP Warranty Claims Management.
Looking for a state-of-the-art warranty solution for your enterprise?
Read up on our recent SAP ACS Warranty project implementation at Blount International: Another Successful Warranty Project Go-Live – Equipment Manufacturing Company
SAP Warranty Claims Management Solution Overview
Warranty Solution Overview (Business)
SAP Warranty Claims Management and the SAP Dealer Portal is an SAP based solution. A successful warranty program solves claims administration challenges, improves customer service, while providing key insight into internal and customer facing KPIs. The SAP warranty solution is fully automated and integrated with Finance and Controlling. The solution actively supports quality management and management reporting, and also yields savings: see our warranty project calculator. We’d love to show you how to uncover untapped revenue opportunities within your company.
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SAP Warranty Claims Management is an E2E
Following we give an overview of how Warranty plays a crucial role in business functions: Warranty Solutions can be fully integrated with the following key business areas:
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Sales, Marketing, Distribution and Billing
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Finance and Controlling
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Service Management
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Quality Management
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Vendor Recovery
Best kept secret is,- how to make an SAP project implementation pay for itself?
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Sales, Marketing, Distribution and Billing
Sales is a key component of the RMA process. Send out replacement spares to the client or service center, process RMA returns, correctly attribute cost and revenue to sales areas, business units, profit centers. Create accurate invoices of service activities and spare part management integrated with warranty claims credits, based on one source of the truth, improving billing and cash-flow.
Finance and Controlling
An integrated warranty system provides financial control concurrent with logistic movements. Real-time visibility into cost and revenue is a key driver for many SAP projects. Visibility of warranty accruals per period versus actual expenses enables fine-tuning general ledger accrual postings. Automate warranty provision, accrual processes.
Elevate your confidence in the global financial reportig picture to a new level: general ledger, controlling, profitability analyis, project accounting, automated to a detailed level, most enterprises would like to aspire to. Case in point: intercompany financial postings: intercompany billing seemless and automatic adhering to company code business rules on both sides, reducing accounting errors to zero.
Service Management
Touch points between claims management and
- Field service
- In-house or depot repair
- Call center and remote services
require tight integration to the claim management process. Master Data established for product, part, serial numbers, assets, equipment structures, counters, etc., combined define an enterprise-wide warranty policy. That policy can be assigned to materials or individual serial numbers leading to a cleansed master data for the installed base.
Claim and service order cost is partially or fully applicable towards warranty claims accounting, and supplier recovery.
Quality Management
A comprehensive warranty solution is a fully integrated and automated, enhancing product quality awareness and predictive quality issue management, integrated with product engineering. SAP’s warranty solution supports this holistic view, integrating warranty with SAP's QM – Quality Management module.
Vendor Recovery
The financial impact of vendor recovery is significant.
Often, money is left on the table because recovering warranty cost from suppliers is viewed as too cumbersome. Or, organizational silos make data workflow difficult, so that vendor recovery becomes an afterthought.
Another typical issue with Vendor Recovery is that existing contractual agreements are missing recovering warranty cost provisions. At the time the contract is put in place, Supply chain issues are at the core of negotiations. Vendor warranty may be an afterthought.
SAP provides strong vendor recovery capability that will allow you to claw back portions of warranty cost automatically, improving P&L.
SAP Warranty Claim Structure Combines Customer and Vendor Claim Data
In closing, SAP Warranty Management functionality addresses these requirements exceptionally well
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Warranty Solution Integration – SAP
Warranty Claim Processing is a cross-application component that is tightly integrated into the SAP overall solution, from master data management (MM (Materials Management), SD (Sales & Distribution), CS (Customer Service), PM (Plant Maintenance)) and pricing (SD) through checking warranty records and creating measurement documents (CS) to posting FI documents (FI/CO) and evaluating warranty data through business analytics in SAP BW and BO. It uses information from some or all of the following modules:
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Vehicles in the Vehicle Management System (IS-A-VMS) (only with SAP Discrete Industries; not with SAP R/3 Enterprise)
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Equipment, Functional Locations, Installed Bases (CS-BD / PM-EQM-EQ)
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Posting Measurement Documents (CS-IB-MC / PM-EQM-SF-MPC)
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Service Contracts (SD-SLS-OA-SCO)
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Catalogs (IS-EC-CEM) (leveraging equipment and tool management CEM ETM catalogs which are more flexible than QM catalogs which also can be used instead)
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VSR Checks (FI-SL)to implement business rules, checks and messages
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IDoc Interface (BC-SRV-EDI) to receive and respond to EDI messages and other communication standards
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Message Determination (CA-GTF-BS) for printing and emailing PDF statements, printing a claim or other document in SAP, emailing, twittering, etc.
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Claim Pricing (SD-BF-PR) using standard SAP pricing, automatically determine the correct claim values
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Reporting in Business Warehouse (SAP BW), advanced warranty claim analytics, see details further below
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Online Reporting in ECC or S/4: The Warranty workbench is another reporting capability out of the box.
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SAP Warranty Claims Management is an E2E
Advanced Analytics and Total Quality Management
For customers who have suffered when they needed to find out information about what is under warranty, what kind of claims are being received for which models, etc. because they did not use a Data Warehouse.
With the SAP BW (Business Warehouse) Data Warehouse, customers are now able to quickly find everything they want to know about every aspect of their warranty claim issues. More importantly, the data warehouse allows people to ask questions they would simply not attempt to answer in a legacy system.
The SAP BW analytics capabilities allows SAP warranty claims analytics to feed back to the product development process (design and engineering). That is a key capability. Customers have benefited in the past already through manually scheduled Cadence.
SAP BW and SAP's Warranty capability also implies an impact on organizational structure,- because data in the data warehouse doesn't do anything unless the organization is able to respond to what it is telling us. For example, users of SAP PP (Production Planning) benefit tremendously from data coming in from the field by a meticulously implemented warranty system.
An effective Total Quality Management (TQM) system that utilizes statistical process control (SPC) techniques, such as Six Sigma, depends on accurate, reliable, real-time data.
SAP Warranty Management EDI capabilities
For many OEMs (Original Equipment Manufacturers) as well as retailers doing transactions via EDI or other data exchange technologies (i.e. XML) is a corporate imperative. Using SAPs extensive EDI capabilities, customers can easily exchange claim information and manage the process across the entire supply chain.
How to Solve Problems with Guarantees
The first prerequisite is to have a high quality product or service. Goes without saying.
A product warranty policy must be clear, transparent, and visible to the marketplace.
Provide an easy way to register and extend warranty.
Use claims data to continuously improve product quality and service offering. Big data angle.
Have a robust supplier recovery program, integrated with Six Sigma, QDX, 8D, portals, IQOS. Turning cost into revenue opportunity. Make sure you are not bearing the cost of your supplier's quality problems.
There are of course numerous other ways and concepts to solve problems with guarantees.
Read about our successful SAP Warranty Management project at Blount International. Click on the link below to receive your free and awesome Case Study:
