How Warranty Part Values Are Calculated

Warranty part values are used to determine how parts are costed and charged on warranty workshop jobs. This ensures that the dealership recovers appropriate revenue from the warranty provider while complying with manufacturer-specific policies. Understanding how these values are calculated is essential for maintaining profitability and accurate reporting in warranty claims.

The system allows you to configure different warranty rates based on the make (franchise), as rates typically vary by manufacturer agreement.

Why This Matters

• Ensures that parts are not undercharged or overcharged on warranty jobs.

• Aligns with manufacturer reimbursement structures.

• Helps service departments maintain consistent and auditable pricing.

• Reduces the risk of warranty rejections due to incorrect part values.

Where Warranty Rates Are Set

To configure or review the warranty part calculation:

1. Go to Workshop > Service Parameters.

2. Select Labour Rates.

3. Click on the Warranty Rates tab.

Understanding the Calculation

Within the Warranty Rates table:

• You’ll see different columns for setting rates. Use the Normal column unless you are explicitly advised otherwise by the helpdesk or training team.

• The Cost field is where the markup is set. For example:

  • If you enter 10 in the Cost field, the system will apply a Cost + 10% calculation.

  • This means a part costing £100 will be charged at £110 to the warranty company.

This percentage represents the uplift applied to the part cost to arrive at the rate billed to the manufacturer under warranty.

Important Notes

• Always check which franchise/make the rate applies to, especially in multi-franchise environments.

• Consult the helpdesk or training team before using columns other than "Normal" or if you're unsure which markup to apply.

• Changes to these settings can affect all warranty jobs going forward, so they should only be updated by authorised staff.