Managing Overlapping Contracts and Warranties
Most customers prefer to let the warranty cover an item for its full duration—after all, the warranty is free. When the warranty expires, a service contract can begin where the warranty left off, perhaps providing even more thorough coverage than the warranty.
Start from Warranty in SSM Accounting Control (36.9.10) helps manage the transition from warranty to service contract. If this is Yes, the system attempts to prevent contract and warranty periods from overlapping.
If you set Source to I in Contract Maintenance to use installed base records to add contract lines, the system has information about the warranty start and end dates. If the warranty end date falls after the contract header start date, the system sets the start date for the line item forward to the day following the warranty end date. If you manually enter an item that is covered by a warranty, the system prompts you to change the contract start date and move it forward.
If Start from Warranty is No, the start date for the line-item defaults from the value on the contract header, which may still be within the warranty period.
Some service organizations aggressively market service contracts and may get customers to start more comprehensive contract coverage on an item before the warranty expires. This, in essence, sets up conflicting service dates, since the system is aware of coverage durations. How does the system resolve the overlapping warranty and contract coverage?
If you create a contract for an installed base item still under warranty, the system gives you a warning and offers to change the contract’s start date so it follows the warranty’s end date. The warning displays when you extend the warranty end date in Installed Base Item Maintenance (11.3.1) and a contract is in effect during the extended warranty.
If you ignore this warning, both the warranty and contract are effective during the overlapping period. Whenever you add an item with more than one source of coverage to a call in Call Maintenance or Call Activity Recording, a lookup displays coverage sources in prioritized order.
The existence of both a valid warranty and a valid contract affects how you can override charge codes in Call Activity Recording.