A typical service claim goes like this:

1. A damaged item is received by the customer and is placed into the service warehouse. Determine whether the item is still under warranty (repairs are free) or not (repairs are charged).
2. The item is repaired or replaced. If it is replaced, a replacement item must be available at the service warehouse (usually it is transferred from the main warehouse to the service warehouse).
3. The repaired or replaced item is returned to the customer.
4. If the damaged item is still under warranty by the supplier, issue it to the supplier.
5. The item repaired or returned by the supplier is received at the service warehouse.

The main difference between service issues and receipts and normal issue and receipts is that in service documents only one piece can be put into each line, even for identical items. This is due to the nature of service operations, as several identical items brought to repairs don't necessarily have the same defect. Also, a more detailed documentation is produced this way.

There are a number of other possibilities when it comes to solving claims.

Replacement from Main Warehouse

It may occur that your service warehouse does not have a replacement item in stock, but the main warehouse does. An inter-warehouse transfer is needed.

Issues and receipts in the Service modules must always be balanced. This means: - every item received from a customer must be returned; - every item sent back to a supplier must be returned. Otherwise records will not be accurate and you won't be able to tell which claims are closed and which aren't.

Replacement to Customer, Credit Note from Supplier

A second possibility is that the supplier is not able to repair or replace the damaged item, but gives you a credit note. In the example below, there is insufficient stock at the service warehouse (to make the example more complex).

The supplier's credit note must be recorded as an received item with negative quantity and positive price.

Supplier issues credit note without receiving any items for repairs or replacement

The supplier might grant you a credit note without you returning any items.

The supplier's credit note must be recorded as an received item with negative quantity and positive price.

Customer receives credit note instead of replacement

If you are not able to replace the customer's item (e.g. warranty is void or the supplier offers no replacements), you have to issue the customer a credit note.

A credit note is done by issuing an item with zero quantity and negative amount. The document type used for that (370 in the example) must have the option Allow Qty = 0, Value <> 0 enabled.