Birken Vogt
Charter Member
What is the proper/professional way to account for work done under warranty?
For instance the other day I had a no-start condition for a unit I had fixed a couple months back. Go out to find it was a non-conductive fuse in a holder that I had installed on the last trip.
I fixed it and said have a nice day.
But if I was going to run this business like a business I should be accounting for this just like any other repair and have the work order/invoice get paid from an expense category [warranty allowance] instead of an assets category.
But I can see problems with this approach showing income on invoices that are internal warranty that is not really income.
On the other hand it would be handy to have these types of jobs properly accounted in case there is finger pointing between myself, customer, and manufacturer. It would always be best to have a full invoice made out for every job so that the customer can see how much money I covered his behind for if it is covered, and so if manufacturers or vendors feel inclined to cover part of it they can have something to go off.
Thoughts?
For instance the other day I had a no-start condition for a unit I had fixed a couple months back. Go out to find it was a non-conductive fuse in a holder that I had installed on the last trip.
I fixed it and said have a nice day.
But if I was going to run this business like a business I should be accounting for this just like any other repair and have the work order/invoice get paid from an expense category [warranty allowance] instead of an assets category.
But I can see problems with this approach showing income on invoices that are internal warranty that is not really income.
On the other hand it would be handy to have these types of jobs properly accounted in case there is finger pointing between myself, customer, and manufacturer. It would always be best to have a full invoice made out for every job so that the customer can see how much money I covered his behind for if it is covered, and so if manufacturers or vendors feel inclined to cover part of it they can have something to go off.
Thoughts?