RDO Warranty Process RDO Equipment Co. – Internal Use Only (updated December 2017) 1 RDO WARRANTY PROCESS Updated April 2018 Items changed since last RDO Warranty Process update April 2018 Update Parts Warranty Submission – W99 (p. 18-19) Battery Warranty template (p. 17) Battery Warranty terms (p. 20) PowerGard Residential Comprehensive claims pay fixed travel (p. 40) December 2017 Update PIP and Parts Warranty Job code template C&F Deductible – refer to Extended Warranty Covered Component Chart Vermeer Extended Warranty Type codes Update screen shots from John Deere Warranty System March 2017 Update Removed SPG verbiage and updated Warranty Reimbursement Guides Updated Special Allowance process (p. 28) Updated premium code verbiage to type codes Updated C&F Parts pricing (p. 9) General ledger accounts updated (p. 53) REMAN Warranty terms (p. 32)
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RDO Warranty Process
RDO Equipment Co. – Internal Use Only (updated December 2017)
1
RDO WARRANTY PROCESS Updated April 2018
Items changed since last RDO Warranty Process update
C&F Deductible – refer to Extended Warranty Covered Component Chart
Vermeer Extended Warranty Type codes
Update screen shots from John Deere Warranty System
March 2017 Update
Removed SPG verbiage and updated Warranty Reimbursement Guides
Updated Special Allowance process (p. 28)
Updated premium code verbiage to type codes
Updated C&F Parts pricing (p. 9)
General ledger accounts updated (p. 53)
REMAN Warranty terms (p. 32)
RDO Warranty Process
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Table of Contents Items changed since last RDO Warranty Process update ......................................................................... 1
April 2018 Update................................................................................................................................. 1 December 2017 Update ......................................................................................................................... 1 March 2017 Update ............................................................................................................................... 1
Opening Warranty Work Order ................................................................................................................. 4 Open the Work Order Header ............................................................................................................... 4
Verify Machine Warranty Status ...................................................................................................... 4 Checking Warranty Information Directly from Deere or Vermeer .................................................. 6 Identifying the Engine Type (Engine Tier) [Deere Only] ................................................................ 6
Open the Segment – Diagnostics .......................................................................................................... 7 Open the Segment - Repair ................................................................................................................... 8 Check for PIP/Campaign Status .......................................................................................................... 11 Deere PIP/ Vermeer Campaign Job Codes ......................................................................................... 14
Warranty Job Code Templates ................................................................................................................. 15 Descriptions for Deere Warranty Job Code ........................................................................................ 15 Basic and Extended Warranties / Special Allowances ........................................................................ 15 Parts Warranties .................................................................................................................................. 16 PIPs… ................................................................................................................................................. 16 Battery Warranties .............................................................................................................................. 17 Vermeer Warranties ............................................................................................................................ 17 Mass Channel Warranties ................................................................................................................... 17
Special Warranty Procedures .................................................................................................................... 18 Over the Counter Parts or Life Time Tool Warranty .......................................................................... 18 Battery Warranties .............................................................................................................................. 20
Air Conditioner Compressor Repairs - Deere ..................................................................................... 25 Product Improvements (PIP’s) ............................................................................................................ 25 Special Allowances ............................................................................................................................. 27
Special Allowances Definitions: .................................................................................................... 27 Goodwill and D-Claim’s ................................................................................................................ 28 All other Special Allowances ......................................................................................................... 29
Engine Warranties (OEM’s) ............................................................................................................... 30 110 Tractor Loader Backhoe (TLB) ................................................................................................... 31 AMS Products ..................................................................................................................................... 31 JD Reman Warranty Periods ............................................................................................................... 31 Portable Products (C&CE) .................................................................................................................. 32 Adjustments (C&F) ............................................................................................................................. 32 Painted Parts (C&F Parts received in Hitachi Orange) ....................................................................... 33 Mass Channel [Lowes and Home Depot] ........................................................................................... 33
John Deere Promise Returns – Ag & Turf Equipment ........................................................................ 37 Prepare the Work Order for Warranty Submission ............................................................................... 38
Verify Completion of Work Order ...................................................................................................... 38 Condition, Cause and Correction ........................................................................................................ 38 Travel/Hauling Time ........................................................................................................................... 40 Freight Charges ................................................................................................................................... 40 Deductibles ......................................................................................................................................... 41 Core Returns ....................................................................................................................................... 42 Retaining Parts Removed from a Warranty Repair ............................................................................. 42 Labor Adjustments – SLA’s (Service Labor Allowance) and Warranty Adjustments/ Reduction ..... 43
Ag Reimbursement Guide .............................................................................................................. 46 C&F Reimbursement Guide ........................................................................................................... 48
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Vermeer and Topcon Reimbursement Guide ................................................................................. 51 Submitting to Central Warranty ............................................................................................................... 52
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o Basic warranty runs out at 2,000 hours during the second year
o Extended warranty
o $250 deductible applies
Core Returns
Make sure all core returns are added to the warranty requisition and returned to the
parts department.
o Each core will have a CR in front of the regular part # (example – CRTY6701).
Refer to CDK Parts Procedure Information document for complete core return
instructions.
o Cores are paid separately from warranty and therefore must be returned to the
warranty work order before submitting the warranty so the core amount is
deducted from the invoice total. Deere will automatically deduct the core amount
from any part that has potential core return ability.
All Reman Select Components require a “Core/warranty return card” (part #
DSPM54449) to be completely filled out and returned with the core.
o Ensure JD claim #, date of repair, part #, and account are properly entered to
receive proper credit.
o Failure to use the core/warranty return card can result in a $25 charge or denial of
warranty.
Retain New (non-Reman) Ag cores for 30 days to ensure parts are not recalled on
RGA. If not recalled, follow normal core return procedures.
Retaining Parts Removed from a Warranty Repair
Due to the potential of a part recall ALL parts removed during a manufacture
warranty repair must be retained for 90 days after the warranty repair date before
discarding. This includes any broken parts or partial pieces of O-rings or gaskets.
The only exception to this rule pertains to any cores. All cores should be returned
to Deere following standard core return procedures (with the exception of non-
Reman Ag cores; retain for 30 days) which overrides the 90 day waiting period.
A best practice for storing the removed warranty parts is to divide the storage area
into four sections. Each section should contain all parts removed during a particular
month and the sections should be labeled as follows:
1. January/May/September
2. February/June/October
3. March/July/November
4. April/August/December
Stored parts should be discarded on the first of each month from the section needed
for the current month, to guarantee parts will be retained for at least 90 days.
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Each part should be identified with a RDO Equipment issued warranty parts label.
The labels are yellow and provide a place to write the part number, work order
number, segment, serial #, date tagged, disposal date, and technician/parts person.
Green tags are also available special order in addition to the yellow tags for hybrid
locations so Ag parts can be distinguished from Construction parts.
Labor Adjustments – SLA’s (Service Labor Allowance) and Warranty
Adjustments/ Reduction
Use the following guidelines to ensure technicians receive proper efficiency
adjustments and hours are properly submitted for reimbursement:
AG and CCE
See the following page for a flow chart diagram on this process
RDO codes and MST codes are acceptable for Ag warranties. All MST codes need
to reflect the 1.2 multiplier; RDO code will NOT use a multiplier.
Complete the following steps to properly bill warranty and adjust technician
efficiency:
➢ Enter SLA deduct or addition to bring hours to estimated repair time (ERT= RDO
or MST x 1.2)
➢ Adjust hours back to the original technician hours using premium code 59 (WAR
ADJ) in the SLA screen
- This will not impact efficiency in any way
- Premium code 59 will post to Ag Warranty Revenue GL
➢ Original technician time will be submitted for reimbursement
EXAMPLE: If technician did not beat the estimated repair time:
MST = 10 hours
Estimated repair time = 12 hours (10 x 1.2)
Actual Technician time = 15 hours
a) Enter SLA deduct (PC 90) for -3 hours to bring time down to 12 hours (ERT)
and decrease the tech’s efficiency
b) Enter an Ag warranty adjustment (PC 59) for 3 hours to bring hours back to
actual technician time
c) 15 hours will be submitted for reimbursement
EXAMPLE: If technician beat the estimated repair time:
MST = 10 hours
Estimated repair time = 12 hours (10 x 1.2)
Actual Technician time = 8 hours
a) Enter SLA add (PC 90) for 4 hours to bring time up to 12 hours (ERT) and
increase the tech’s efficiency
b) Enter an Ag warranty adjustment (PC 59) for -4 hours to bring hours back to
actual technician time
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c) 8 hours will be submitted for reimbursement
Ag PIPs
➢ Adjust the labor with a SLA add or deduct to PIP time for the repair (no
multipliers for PIP’s)
EXAMPLE:
PIP = 1 hour
Actual Technician time = 1.25 hours
a) Enter SLA deduct (PC 90) for .25hours to bring time down to PIP time
b) 1 hour will be submitted for reimbursement
Diagnostics / Generic or No Job Codes
Actual technician time will be submitted (no SLA additions allowed, SLA deducts
allowed if need)
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RDO Warranty Process
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Ag Reimbursement Guide
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C&F and CWP
MST, RDO or SPG’s are acceptable for CE warranties.
Complete the following steps to properly bill warranty and adjust technician
efficiency:
➢ Enter SLA deduct or addition to bring hours to estimated repair time
➢ Adjust hours back to the original technician hours using premium code 59 (WAR
ADJ) in the SLA screen
- This will not impact efficiency in any way
- Premium code 59 will post to CE Warranty Revenue GL
➢ Original technician time will be submitted for reimbursement
EXAMPLE: If technician did not beat the ERT:
SPG time = 10 hours
Estimated repair time = 20 hours (10 x 2)
Actual Technician time = 22 hours
a) Enter SLA deduct (PC 90) for -2 hours to bring time down to 20 hours (ERT)
and decrease the tech’s efficiency
b) Enter a Warranty adjustment (PC 59) for 2 hours to bring back to actual time
c) 22 hours will be submitted for reimbursement
EXAMPLE: If technician is under the ERT:
SPG time = 10 hours
Estimated repair time = 20 hours (10 x 2)
Actual Technician time = 17 hours
a) Enter SLA add (PC 90) for 3 hours to bring the time up to 20 hours (ERT) and
increase the tech’s efficiency
b) Enter a Warranty adjustment (PC 59) for -3 hours to reduce the time on the
segment back to actual time
c) 17 hours will be submitted for reimbursement
Diagnostics / Generic Job Codes
Actual technician time will be submitted (no SLA additions allowed, SLA deducts
allowed if applicable)
PIPs or VE Campaigns
➢ Adjust the labor with a SLA add or deduct to PIP time for the repair
EXAMPLE:
PIP = 1 hour
Actual Technician time = 1.25 hours
a) Enter SLA deduct (PC 90) for .25 hours to bring time down to PIP time
b) 1 hour will be submitted for reimbursement
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C&F Reimbursement Guide
Note: 'Warranty Reduction' entries (PC 59) will not impact a technician's efficiency
Basic and Extended PIPs
Ensure technicians time is properly recorded on each applicable segment. Diagnostic hours should be split into separate segments if pertaining to separate failures (i.e. different failure part
#'s). Do not use job code MULTIPLE/stack job codes.
Note: Use applicable SPG, MST, or RDO job code
Note: Use PIP number as job code
Is the technician over or under the estimated repair time (SPG x 2, MST,
or RDO code)?
Is the technician over or under the PIP time allowed?
Give the tech an SLA Add (PC 90) so the time on
the segment equals the
estimated repair time
Give the tech an SLA Deduct (PC90) so the time
on the segment equals the
estimated repair time
Under Over Under Over
Enter negative Warranty Adjust (PC 59) for same
amount as the SLA add in the previous step
Enter positive Warranty Adjust
(PC 59) for the
exact amount of the SLA deduct in the previous step
Submit to Central Warranty/Deere the actual time
worked by technician
Submit to Central Warranty/Deere the actual time
worked by technician
Give the tech an SLA Add (PC 90) up to PIP time
Submit to Central Warranty/Deere
the PIP time
Give the tech an SLA Deduct (PC
90) down to PIP
time
Submit to Central Warranty/Deere
the PIP time
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Vermeer and Topcon
VE Job Codes, and Topcon Flat rates
Complete the following steps to properly bill warranty and adjust technician
efficiency:
➢ Enter SLA add or deduct to bring hours to estimated repair time [ERT = Job code
x 1.5 (VE/IC)]
➢ Adjust hours to flat time by entering a Warranty adjustment using premium code
59 in the SLA screen
- This will not impact efficiency in any way
- Premium code 59 will post to Warranty Revenue GL
➢ Manufacturer job code time will be submitted for reimbursement
EXAMPLE: If technician did not beat the ERT:
VE job code time = 4 hours
Estimated repair time = 6 hours (4 x 1.5)
Actual Technician time = 7 hours
d) Enter SLA deduct (PC 90) for -1 hours to bring time down to 6 hours (ERT)
and decrease the tech’s efficiency
e) Enter a Warranty adjustment (PC 59) for -2 hours to reduce the time on the
segment flat time.
f) 4 hours will be submitted for reimbursement
EXAMPLE: If technician is under the ERT but over manufacturer job code time:
IC job code time = 2 hours
Estimated repair time = 3 hours (2 x 1.5)
Actual Technician time = 1.5 hours
d) Enter SLA add (PC 90) for 1.5 hours to bring the time up to 3 hours (ERT)
and increase the tech’s efficiency
e) Enter a Warranty adjustment (PC 59) for -1 hour to reduce the time on the
segment to flat time.
f) 2 hours will be submitted for reimbursement
EXAMPLE: If technician is under the estimated repair time and under manufacturer
job code time:
Job code time = 5 hours
Estimated repair time = 7.5 hours (5 x 1.5)
Actual Technician time = 3 hours
a) Enter SLA add (PC 90) for 4.5 hours to bring the time up to 7.5 hours (ERT)
and increase the tech’s efficiency
b) Enter a Warranty adjustment (PC 59) for -2.5 hours to reduce the time on the
segment to flat time.
c) 5 hours will be submitted for reimbursement
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Diagnostics / Generic Job Codes
Actual technician time will be submitted (no SLA additions allowed, SLA deducts
allowed if applicable)
VE Campaigns
➢ Adjust the labor with a SLA add or deduct to campaign time for the repair (no
multipliers for PIP’s)
EXAMPLE:
Campaign = 1 hour
Actual Technician time = 1.25 hours
c) Enter SLA deduct (PC 90) for .25 hours to bring time down to campaign time
d) 1 hour will be submitted for reimbursement
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Vermeer and Topcon Reimbursement Guide
Note: 'Warranty Reduction' entries (PC 59) will not impact a technician's efficiency
Normal Warranty Campaigns
Make sure the technician's time is separated correctly on each segment. All diagnostic time should be on a separate diagnostic segment(s). Technician time should only be SLA'd if there is an
applicable MST or RDO job code.
Is the technician over or under the estimated repair time (labor code x 1.5)?
Is the technician over or under the Campaign time allowed?
Give the tech an SLA add (PC 90)
up so the time on
the segment equals the repair time (labor code
x 1.5)
Give the tech an SLA deduct (PC 90) so the time
on the segment equals the repair time (labor code x 1.5)
Under Over Under Over
Enter a negative Warranty Adjust (PC 59) to reduce
the time on the segment down to
the labor code time
Enter a negative Warranty Adjust (PC 59) to reduce
the time on the segment down to the labor code time
Submit to Central Warranty/
Vermeer/Topcon
the remaining time on the
(labor code time)
Submit to Central Warranty/ Vermeer/Topcon
the remaining time on the segment (labor code time)
Give the tech an SLA add (PC 90)
up to the
campaign time
Submit to Central Warranty/
Vermeer the
campaign time
Give the tech an SLA deduct (PC
90) down to
campaign time
Submit to Central Warranty/
Vermeer the
campaign time
Note: Use IK or SVC number as job codeNote: Use applicable Vermeer and Topcon
Job Codes
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Submitting to Central Warranty
Complete the following steps to submit to the RDO Central warranty team:
Work Orders
Enter the Salesperson initials into the ‘Ship Via’ field (or responsible box) on the
work order header
Enter W99 in the Salesperson field, the warranty team will see the change of status
and process the claim.
Once claim submitted or needing to send back to location for corrections, initials in
Ship Via will be moved back to Salesperson field
After a revision is made, leave your initials / warranty processors initials in ship via
(example: IR1/XYZ)
Over-the-counter Parts, Battery and Tool Warranties
Over-the-counter warranties are submitted to Central warranty through electronic
forms on the Central Warranty page of the Employee Portal. The forms are listed
under the Parts Warranty Claim Section on the Page.
A parts department employee should select the applicable form for their required
warranty and complete all fields on the form. Then on the open sales order, enter
W99 in the Salesperson box and your initials in the ‘Ship Via’ field or responsible
box to submit for processing.
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Reimbursement Coding
The Central Warranty Team will be responsible for coding submitted claims for
Deere/Vermeer claims through the warranty/accounting application system.
Typically any differences will be coded to one of the following accounts:
Deere Only
MFG WARRANTY DIFF – PARTS = 7420X3## = difference for any parts not paid
by the vendor and freight differences
MFG WARRANTY DIFF – SERVICE = 7420X4## = difference for any labor not
paid by the vendor
o Shortage of Labor
o Diagnostics not paid due to non-level 2 technician (not capstoned)
o PIP travel
- PIP’s that pay travel - Any differences for PIP travel on a PIP that allows
travel reimbursement should be coded to this account.
• This includes travel from expired PIPs. Service departments are
responsible for completing PIPs before expiration.
- PIP’s that DO NOT pay travel - These travel charges should be billed to the
customer, rental department, dealer warranty, or the sales MWD account (if
unit has promise); whichever is applicable
o OEM Engine travel - Any differences for OEM Engine travel should be coded to
this account.
Deere / Vermeer / Other Vendors (as applicable)
ACCRUED RDO PROMISE TRAVEL = 261050## = If the machine is under the
RDO Promise any travel costs not reimbursed by the vendor should be coded to this
account.
MFG WARRANTY DIFF - SALES = 7420X2##
o Difference paid for shortline vendors
o PIP travel on PIPs that DO NOT pay travel –These travel charges should be
billed to the sales MWD account if the machine has RDO Promise coverage.
- Exception – If the Deere PIP allows for travel, any difference not paid
should be coded to Service MWD
MFG WARRANTY DIFF – RENTAL = 7420X5## = difference paid that needs to
be coded to the rental department for RDO rental fleet units only
o This includes deductibles and items not covered under warranty (i.e. travel
(except on PIPs that pay travel), oil, etc.)
POLICY ADJUSTMENT=7450XXX = any differences for Special Allowances. 3-
way split between parts, sales, and service applies for CE= 745A1D## and AG =
745A2D#
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Warranty Receivables Subledger
The warranty receivable subledger should be reviewed weekly or at a minimum of
once a month by the service manager (or other applicable individuals as assigned).
Central Warranty also reviews, as able, and enters comments for action/status
updates, which can be reviewed using the subledger report.
The subledger report is available on the CDK Reports Employee portal page in the
weekly section or by clicking here.
Every work order closed to the warranty receivable will list on the warranty schedule.
The Central Warranty Subledger report is separated into Deere, Vermeer, and All
Other Vendor sections to allow better identification of aging claims. Each vendor
section is split into three sections: No Payment received, partial payment received, or
all payment received.
o The Unassigned section will display any items that have been coded to the
warranty receivable (105010##) account. Typically cores and deductibles.
o The Reserve section will display any items that Accounting has accrued for as a
loss is expected. Reserve entries are calculated based on age and dollar value.