Warranty Credit Shortage/ Overage

A common issue with warranty companies is you get a shortage or overage on the payment.  This page will show you how to handle payments for those cases.  These steps cover after you have input the information from the payment.

This page explains how to:

  1. Handle Shortage from Warranty Credit.
  2. Handle Overage from Warranty Credit.

Handle Shortage from Warranty Credit.

If you get a check from the warranty company that is short the amount of the claim:

  1. On the first line, enter the amount to the amount being paid in GL Credit Amount.
  2. On the next line select the same claim number.

(The system will fill in the difference on that claim.)

  1. The amount that it is short by will be a debit to an expense account, which you will have to enter manually in the GL Debit Account.

 

Handle Overage from Warranty Credit

If you get a check from the warranty company that is over the amount of the claim:

  1. On the first line, enter the claim number to be paid. (The system will fill in the amount on that claim)
  2. On the next line select the same claim number.
  3. Enter the expense or revenue account number to the GL Credit Account.
  4. The amount that it is over on the check by will be a GL Credit Amount.

* You may want to use the same expense account you have for shortages, as this will reduce that expense.