Before creating or tracking a claim, please follow the link below for the setup process of using Claims.
Overview
Vendor claims are agreements or statements suppliers or vendors make about their materials, products, and/or performance; this article will cover how to initiate, process, track, and close a claim. Some of the benefits of using the Claims Module are evaluating the revenue cost of goods of claims and keeping vendor credits separate from vendor claims.
Please see the article Setting Up Claims Module before starting your first claim.
Initiating The Claim
Claims can be started either from the Customer/Contact, who will be the vendor responsible for the claim, needs to be created as a customer before the initiation of the claim, or from the Claim button on the Navigation screen. Each option allows the user to use the Transfer to begin the proposal stage of the Claim.
Completing the Claims Form
The claim will be in the associated vendor’s
name, not the customer/contact of the original project. The ship-to will be the information of the original project that the claim is for. There are a series of tabs for your use as in other modules of the software that you
are familiar with, as well as adding required documentation on the overview tab. Utilization of as many fields on the claim is suggested as best practice.
Under the products tab, if using Product ID # s, you can bring over the material description. This area works similarly to the Opportunity Module. Be sure to mark the returned button and like the button to carry the information to the claim proposal.
Updating the Claim Status
The claim status must be manually changed throughout the claim process. To do so, click on the claim status and choose from the drop-down list previously created in the setup process.
Processing the Claim
Once the Claim information is complete, transfer it to a proposal. The proposal should be completed with all needed replacement materials and/or replacement labor.
Claim>Transfer>Proposal
Then, proceed with the proper steps of a typical project on the Claim. When you have completed ordering, receiving, delivering, and/or installation.
Proposal>Transfer>Jobs
Transfer the claim to an invoice. Remember to update your claim status for tracking purposes on the Claim module.
Jobs>Transfer>Invoice
Closing the Claim
Once the credit is received from the vendor, create a new credit in the A/P module by selecting the new button. Select the credit option on the right and fill in the matching vendor from the drop-down list. You must also populate the posting and invoice date, credit number, and credit amount. Once the credit A/P is issued, distribute the credit to a suspense GL account. DO NOT accept the default GL account.
Navigate to the AR invoice created for the claim. Click the Process Payment on the top action bar of the claim invoice. Once in the Payment module, follow the steps below to process the payment.
- Select the Payment Type "Adjustment". This will display the GL Account selection field.
- Select the same "Suspense" GL account that the Vendor Credit was distributed to in the steps above on the vendor credit.
- Enter the amount of the Vendor Credit in the payment amount field.
- Apply the payment amount to the respective Invoice using the Auto checkmark button next to the Payment Balance to Allocate and Accept the payment.
This payment will balance out the amount in the Suspense GL from the vendor credit and the A/R invoice. If all other closing requirements have been met, the claim order can now be closed. Be certain to change the status of the claim to closed.
Tracking Claims
You can view all the open claims by clicking the Open Claims button on the top toolbar of the claim. This area allows you to manage and track your claims. Manually changing the claim status is imperative for the list to be correct.
The Open Claims list works like the Opportunities Pipeline screen. The column can be sorted, and the list can show only one rep’s name or all reps’ names. This list view allows you to modify many of the fields on each record. The status can also be changed from the list view.
Once a claim is marked “closed” with a “date closed,” it will be removed from the open list.
Additional Claim Article
Claims-v23b8.2-20240605DN-KB