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Warranty cost calculation logic

Suggest edit Updated on December 31, 2019

You can review all of the provided cost calculations that are available in Pega Warranty to obtain a better understanding of the validation process that occurs when creating Warranty claim, Repair order, and Supplier claim cases.

Prorated cost coverage

The cost coverage of a part (percentage of the part cost) can be prorated against certain parameters while processing a warranty claim. When a part is configured for prorated coverage, only a percentage of the part cost is considered to be reimbursed for the warranty claim. The applicability of the prorated coverage is always associated with a warranty contract for specific parts.

Prorated coverage enables the manufacturer to configure the coverage percentage for the following properties:

  • Time in service
  • Mileage
  • Engine hours

The prorated percentage for a part against a warranty type can be configured using the GetProratedCoverage decision table. To configure prorated coverage see Configuring prorated warranty coverage.

Prorated repair order coverage cost

If a part is configured for prorated coverage in any of the warranty types, the part cost is calculated using the following formulas.

Repair order cost = prorated part cost (replaced part) + labor cost + miscellaneous cost

Prorated part cost = covered part cost * (prorated percentage/100)

The prorated percentage for a part against a warranty type can be configured using the GetProratedCoverage decision table. To configure prorated coverage see Configuring prorated warranty coverage.

Whenever a repair order is converted to a warranty claim, the cost details of the new or replaced part must be propagated from the repair order.

Prorated warranty claim amount

If a part is configured for prorated coverage in any of the warranty types, the part cost is calculated using the following formulas.

Warranty claim amount = prorated part cost (replaced part) + labor cost + miscellaneous cost

Prorated part cost = covered part cost * (prorated percentage/100)

The prorated percentage for a part against a warranty type can be configured using the GetProratedCoverage decision table. To configure prorated coverage see Configuring prorated warranty coverage.

Supplier claim amount

For an automatic supplier claim creation, the part cost is calculated using the following formula.

Supplier claim amount = Warranty claim amount = prorated part cost (replaced part) + labor cost + miscellaneous cost

For a manual supplier claim creation, the part cost is calculated using the following formula.

Supplier claim amount = prorated part cost (replaced part) + labor cost + miscellaneous cost

Related articles

Repair order cost calculation

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