Handling a Warranty Deductible in Lizzy
If the customer is paying a warranty deductible, follow these steps.
1) You will first need to set up a part in Lizzy so that you can charge the customer for the cost of the deductible. Before you do this, you will need to choose what Manufacturer you will create this part under. You can choose to set up a new contact as a Manufacturer, or you can tie this part to a Manufacturer record you have already set up (for example, your own company record). To add a new Manufacturer, go to Contacts > Locate Contact and then add a new contact. Once you have created the contact record, you will need to make them a Manufacturer. Under Contact Type, click on the pencil, check the box labeled “Manufacturer,” and save.
Note: If you would like to break down the warranty deductibles by vendor, you will need to create a separate contact record. For example, if I want to see all BRP (Bombardier) warranty deductibles separately from the other warranty deductibles, I would create a separate manufacturer contact record called BRP Warranty Deductible. It is very important that you create a new Manufacturer account, and do NOT use the main Manufacturer record since this would adversely affect your accounting for the official supplier record.
2) You will need to set the Sales account to the miscellaneous warranty over/under account. If you have specific accounts set up for your manufacturers (in our example, BRP), you can use the specific supplier’s warranty over/under account instead of the miscellaneous warranty over/under account. Remember that we are changing the accounting ONLY on the “Warranty Deductible” manufacturer, and not our main supplier record. (Our example shows 459.99.999 but your account number might be different.)
3) Now you will create the new inventory item to represent the warranty deductible. Go to Inventory > Items > Add New Item. You are going to add a NON-INVENTORY item called Warranty Deductible. (If you keep it as Inventory, the part will go on a PO once it’s sold, which isn’t necessary.)
You will not need a retail price unless the deductible is always the same price. Since this is a non-inventory item, you will not need to fill in a cost. If you have decided to create a different record for each manufacturer that charges a deductible, you may want to name the part the same as the manufacturer. (Ex: if the warranty deductible is for our manufacturer contact called “BRP Warranty Deductible,” name the part “BRP Warranty Deductible”.)
Make sure to uncheck everything except for “Sellable.” Make sure this is not marked as “Taxable.” Save.
4) Once the part is created, you will sell the part on the invoice. Do not attach it to the Warranty Job. The price will show $0, so be sure to put in the price you are charging the customer and click Add & Close.
5) On the Warranty Claim, mark the parts and labor as warranty for the full amount. When you get reimbursed by the supplier, you will write off the deductible that the customer paid. When a warranty deductible is used, your Lizzy warranty claim won’t match the supplier’s because we will be writing that amount off.
6) When the supplier reimburses you for the warranty claim, you are going to short the payment for the deductible. Lizzy will automatically hit the warranty over/under account. If the supplier is the owner of the company, it will use the miscellaneous account and if you split out your suppliers, it will use the one you created.
Find the claim you are paying, fill in the amount you received and click Write Off Diff.
Select how the supplier paid you and click Process Payment.
