Service Business

Warranty Claim Management in ServiceWorks

The entire warranty process is a very large-scale system and it is a process that begins with a manufacturer and ends with a customer. Warranty management system plays an important role in the service industry as it allows automatic tracking of products / services under warranty period, as well as allowing validity to re-import the claim expense.  It’s more expensive to process the claims of millions of consumers through thousands of vendors than it is to process the business-to-business claims coming in from just one or two OEMs. This article will provide brief information about ServiceWorks warranty claims management features.

ServiceWorks warranty claims management system enables entry of online Work Orders which has claimable Product or Services, importing work order from third party service systems, verification of claims and review and processing on comprehensive warranty business rules, as well as device history. Warranty claims allow dealers to create, edit and process various types of claim where Items/Parts or Services are covered by Warranty.

For manufacturers with products carrying warranties that require servicers to service them and file claims with the manufacturer on a regular basis, ServiceWorks warranty claim management software is like a dream come true.  The system covers a complete Warranty Claim creation module that can be tailored to meet the manufacturer’s needs. Save thousands in claim payments by properly tracking, adjudication, and payment of the right claims for the right amount. ServiceWorks warranty claim management software manages the claims submission process.

Why Servicers Need Warranty Claim Management Software:

  • To accurately reflect the nature of the claim, classifying it into categories that make sense.
  • Provide orientation about approximate repair costs.
  • To keep tight control over what is included in the coverage.
  • Easily identify the closest and most efficient service personnel.
  • To monitor and adjudicate the servicer and record performance for future reference.
  • Store all payment information for report generation.

Warranty Process Flow:

In the service industry, a warranty claim will be made when the Product is being repaired or the part is defective . Generally, Product repair is for the Product owned by customers and for Products under active warranty. The Servicer who repairs will make a warranty claim. Warranty claim’s warranty will be examined by the investigator and reimbursed for labor and / or materials and / or sublet costs. Here is the basic example of the process workflow where a part should pass through when it comes for warranty claims.

  1. Product Owner contacts Servicers for repair/investigation
  2. Servicer determines if part defect is under warranty
  3. If valid, Servicers files warranty claim
  4. Warranty assessors may review claim for accuracy
  5. Claim is either approved or rejected
  6. If approved, claim is processed through the finance and Servicers is reimbursed
  7. Servicers note down the payment received from Warranty claim

Step-by-step configuration to be carried out for warranty claim management: 

  • Config Setup : Before anything else make sure your Create Claimable Job is checked in the module visibility of Job Settings. If this setting is not turned on you will not be able to create claimable jobs.
  • Create New Work Order: At first a new Work order or job is generated by entering the general details about the part and reason to service the product. The Work Orders can also flow in from Service Bench and Service Power.
  • Define Warranty Claim : Now, after entering the general data, claim type should be defined by checking the Product as Claimable. You can’t add more than one claimable product in one work order. Please create a new work order for another claimable product.
  • Define Claim Pricing: In the next step claim value must be defined. Every warranty claim should have a pricing structure to determine how much value to be reimbursed to Servicer when part is to be repaired within warranty period promised by the company. The item/part and Service can be marked as Billable to Distributor, OEM or Claim Processor. While setting up Claim Processor in the configuration you can chose to Submit Part Pricing or Cost as part of the warranty.
  • Deductible: After completing step third, define the copay or deductible that is Billable to Customer and will not be covered by warranty. Select an other charge called Copay / Deductible and make sure it is billable to Customer. This charge will be invoiced to the customer and will attach to the claim as deductible.
  • Documents Uploading: Add an image or pdf of the Product’s proof of Purchase while creating work order.
  • Labor Code: Enter labor code in your Service Items as these are based on different action done on those claims. These codes can be set in the PriceList in your configuration.
  • Enter Internal Comment : Servicers may add any comment regarding the claim that will be visible only to admin in the Trip Note Section.
  • Claim Submission: Prior to submitting the claims the work order has to be in Delivered state and all Items going for warranty needs to be delivered. When the job or work order is completed the Claim is available for submission under Jobs->Warranty Claims. Select the claim you want to submit and select the Action button and choose the appropriate method of submission. Service Bench claims can be automatically submitted, Service Power claims can be downloaded and others can be manually submitted.
  • Print Warranty Invoice: Submitting a claim will change the Claim status to Submitted. At this time you can click on the three dot action menu in the claim row to generate warranty invoice, to sent it to the processor if you want.
  • Receive Payments from Warranty: After claim submission and your claim is approved, you will receive payments from the warranty company. You can go to Jobs -> Warranty Claim Receivable and enter the payment you received. This grid gives you a snapshot of all vendors having due payments. You can filter the Vendors and open the appropriate vendor from whom you are receiving the payment.

You can see the Part, Labor and Deductible are listed by Invoice or Job number. Select the checkbox for respective items and enter payment information.

You may have received payment via ACH, Cash, Check or Parts Credit. Track the details and add the meaningful reference number. Save the payment detail. All the previous due amounts will drop off and only the ones you need to still collect payment will remain. This

This completes the warranty process.


1 comment

Comments are closed.