I am brand new to Epicor, thank you in advance for help! I will have subsequent questions after this one, but I wanted to start with the correct way going forward and then discuss how I should fix the ones that occurred in the past.
An AR invoice is created but not distributed to the customer because it was fully covered by warranty.
How do you process the closure of this invoice that reverses the accounting transactions that occurred when invoiced and what is the entry to record the loss in sales/revenue and the warranty expense. Please keep in mind that we do not accrue for this warranty but rather expense it accordingly as it occurs.
Is there a way to close the shipment/SO without creating an invoice that would allow for accounting entries to designate that this shipment was under warranty and therefor book the loss in revenue and warranty expense?
Welcome, we have only been operating Epicor for 4 years but here is our process I will start by saying we do not have the Quality module so the process may be different for those that do.
The cost of goods is captured at order shipment time so nothing done at the invoicing level will trigger a posting of costs. We created a Product Group called Warranty and then created a GL control attached to that product group that posts all of the COS to our warranty expense ledger. (We have similar Product groups for marketing items and R&D)
When the user enters a warranty order they change the default Product group on the line to Warranty and zero out the selling price. This will trigger a zero-value invoice on the customer account to reflect the warranty items supplied, once the capture COS Wip is run the cost of the sale will be posted to the Warranty expense ledger.
I’m sure others have different ways of achieving similar epicor can be flexible when it wants
Thank you so much for this feedback. We are updating our test version of Epicor; once completed I will test your excellent recommendation.
Stay tuned……
