Why:

Claims are made by Dealers to the Importer or Supplier to recover payment for goods or services provided by the Dealer to a Customer.

There are various reasons as to why a claim is raised:

•      A single-job vehicle warranty claim

•      A multiple-job vehicle warranty claim

•      A warranty claim that includes a repair, but needs no replacement parts

•      A parts warranty claim

•      An exchange of parts

•      A repair or work covered by a current campaign or contract

•      A service under contract combined with a warranty repair

•      A breakdown call-out combined with a warranty repair

There are two ways that claims are created in Fusion. A claim is created automatically by Fusion if the payment code input against a line in an order indicates that a claim is required, or a claim can be created manually from the workshop order routine.

At any point in a claims ‘history’ it can be viewed, along with its current status. Reports can be run to analyse aged claims, pending claims, rejected claims and manually adjusted claims by Product code (Franchise).

Volvo credits are imported from the data bank and added (matched) to the credit items file. As a precaution, before the import happens, the orders associated with the new credits are checked against those already in the ledger. Any found in the ledger with the same number are removed.

Manual Credits can be added for other Franchise claims. Following the import or manual credit input, but as part of the same job, the automatic reconciliation is run to match credit values to claims within the claims ledger. Based upon whether a credit matches, partially matches, is completely rejected or is within predefined minimum variance, the status of a claim is changed to:

•      Original Status = Pending

•      Credit Matches = Paid (completely or within minimum variance)

•      Partially matches = Outstanding

•      All credit matches are zero = Rejected

Adjustment of a claim becomes necessary when its status has been changed to ‘Outstanding’. This means the credit falls short of the amount claimed and is more than the minimum variance allowed. Similarly, adjustments may be necessary for a claim with a status of ‘Rejected’.

Manual adjustment of a claim enables the balance to be accounted for and can be used to create a journal in the accounts system (otherwise a report is generated to be used for manual postings).

There are 5 types of credit transaction. The first is the Volvo credit extracted from the bank; the others are different types of adjustment:

•      SCC (Goodwill) auto adjustment

•      Manual adjustment

•      Minimum Variance adjustment

•      Volvo conversion adjustment

When manually adjusting a claim, you must choose a predefined adjustment category; for example, cost absorbed by parts department, service department, re-invoiced and clerical error etc.

Credit details that are extracted from the data bank that don’t match up to any claim number within the claim ledger can be reassigned. They’re categorised as ‘Credit details in error’ and can be manually matched to any outstanding claim for the same order (i.e. ‘reassigned’ to another claim). SCC claims (sometimes called manual or goodwill) are often outstanding, but are treated as a special case during claim reconciliation. These claims are automatically balanced with a SCC auto adjustment. This requirement prevents unnecessary maintenance.

 

Where:

The Claim View lists all claims currently outstanding in the system. The filter option  can be used to view specific claim types and/or Franchises (Product codes).

 

How to View Claims:

Each claim listed in the claim view can be opened and reprinted. When opened, summary details of the values in the claim are displayed, as well as any claim notes.

To see the claim in more detail, highlight the claim and right-click, then select Claim Detail. This will display all of the jobs within the claim. Each job can be ‘opened’ to display the parts and operations related to the selected job. Each operation or part line can be double-clicked to open a window containing details for the selected line.

 

What else would you like to do?

Work with Orders. See the chapter Parts & Workshop Orders.

 

Related Topics:

Complementary Business.

Adjusting/Manually Reconciling a Claim.

Creating a Manual Claim.

Extracting Credits from the Data Bank.

Manual Credit Note Reconciliation.

Print and Deposit Claims.

 

Set Up:

Various parameters affect claims:

CLM 008      CUR 009    CLM 002    CLM 008        CLM 004
CLM 005      PPP 014     PPP 023     PRC 001        PRC 002
ROR 001     RTP 508     TAX 013     TAX 015        TSA 001
TWS 001