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Extended warranty generally + revenue and cost

Hello. The company (electrical equipment) wants to start with "extended warranty" selling (one or 3 years of warranty on top of standard 2 years, from 10 till 500 EUR of price). Despite really hard trying I´m not able to find any right procedure description for setting in SAP related to revenue and costs booking anywhere

As I understand till now, materials (something like EXTDWARR_TYPEA_3YEARS) should be set for it, this wil be used for fowlloing, or not? How costs and revenues should be proceeding? By using “contracts” (CS module)? If yes, does it mean that contract will be open 3/5 years in SAP? And should be done for each case of this extended warranty? It can be thousands of cases per year. Or is there any different way? Should be revenue/costs recognized (=split) among years somehow or not? Should revenue be deferred till end of warranty period? Or can be revenue and costs followed separately and not deferred (e.g. revenue in P&L now, costs – if there is any – after in cost center)? How link between them should be kept?

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  • Hi, Robert:

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