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Categories included in warranty cost calculation?

Apologies if this is in the wrong forum.

Manufacturing companies need to track their warranty expenses to report, as required by GAAP.

For example, if I were selling phones, when one fails during the warranty period, I need to collect the old phone and provide a refurbished one. The company would want to include the cost of shipping the replacement and postage to recover the old one, plus the cost of parts and labor to refurbish it. But some companies could have differences of opinion about how they allocate, say, call center time, or I don't know what.

I know every company is different, but if I were doing a new install of SAP at a company that had warranties, what are the expense categories that, by default, get summed up to provide a total for warranty costs?

Any help is greatly appreciated. Thanks.

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  • Best Answer
    Posted on Sep 10, 2013 at 08:48 AM

    Hi,

    This sounds like a Financial close/consolidation question. What solution are you using?

    Are you a Business-One Financial Accounting customer? @http://scn.sap.com/community/business-one

    Or an EPM (enterprise performance management) 'BPC' customer? (business planning consolution) @http://scn.sap.com/community/epm

    This forum is for "Lumira" which is a self-service data visualisation and exploration tool .

    Regards,

    H

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    • Former Member

      As I suspected, I'm in the wrong place. I'm not an SAP customer at this time, just someone interested in warranty costs, who knows very little about SAP but is trying to learn something, so I can figure out how SAP, by default, treats warranty costs. I realized this was a forum for data exploration, and I was thinking that a company might be trying to study its warranty costs, so maybe this was the right place, but apparently not. Thanks!

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