clemens paulus, sap 2019, september 25th...manufacturer / oem supplier • claim submission via web...

Warranty Management

Clemens Paulus, SAP

2019, September 25th

Public

2PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Daily challenges in complaints handling

1. Complaints may be raised via multiple different channels (excel files, portals,

manual creation, unexpected returns,…)

2. Different streams within the process (quality information, finance and stock) are

often handled separately, have no / little integration and lack transparency

3. Orchestration of the different processes (handling towards the customer,

towards the supplier and within the company)


Portal (e.g. B2B) Excel (e.g. KTL)Customer

Your company

Manual creation (e.g. UI5)

Supplier

Finance

(WTY)

ERP

Portal PDFInteractive Documents

Quality

(QM / IQOS)

Logistics

(MM/SD/ARM)

Holistic view on a complaint


SAP S/4HANA Enterprise Management

Warranty Management

“SAP Warranty Management is the SAP solution for processing claims an managing corresponding master data. The solution covers the

complete supply chain, linking customer (reimbursement) and vendor (recovery) processes. SAP Warranty Management handles the financial

aspects of claims and integrates related processes (e.g. return parts logistics or quality improvements.)”

Solution

Vendor

Customer

Outgoing to

Vendor

Outgoing to

Customer

Incoming from

Customer

Incoming from

Vendor

SAP Warranty Management works with claim objects that keep track of the transparency through an easy versioning concept.

▪ Within one claim, inbound and outbound processes can be processed for each partner.

▪ Within one category, there can be a unlimited number of versions which document the proceeding of a claim.

▪ SAP WTY provides you one central document instead of many

distributed information and is capable of directly using the relevant,

existing SAP master data (equipment, material, customers, prices…)

▪ The flexible concept allows you to create all variants of your

processes within the claim management process.

▪ Through the flexible process design the rule engine can be called for each version. The rule framework is designed as well to call also self-defined rules and to automate

the validation process as much as desired.

▪ Based on the full integration to all relevant SAP modules, prices can be directly derived from SD or MM within the claim depending on the version and postings of costs /

revenues can be made into FI and CO directly out of the claim, separated by the version.


Even if a claim management process is already in place, using a dedicated warranty management system has the potential to improve the overall business result

• Uniform end-to-end process, independent of object and partner

• Integration into SAP landscape (e.g. modules SD, FI, MM, …)

• Flexible adjustable degree of automation of claim validation

• Reducing of manual efforts and response time to the customer

• Enhancing the accuracy of claim validation creates greater customer confidence

• Increase number of claims raised to the supplier to reduce own costs

Improvement Potential / Value Proposal


Warranty Data Analytics: Quality, Efficiency, New Business Models

Warranty Data gives you direct feedback on how your products are performing in the market

• Discover Failure Patterns early, reducing failure discovery time, reducing number of faulty units being sold

• Rule-based and consistent decisions, for all claims: Warranty, Goodwill, Contracts, Recalls

• Calculate exact accrual rates, to maximize your cash-flow

• Know your products performance and create new service offerings: Pay-per-hour, pay-per-kilometer, extended warranties, full service, full-service leasing, etc.

Model 1

Model 2

Model 3

Model 1

Model 2

Model 3

Model 1

Model 2

Model 3

Model 1

Model 2

Model 3

Model 1

Model 2

Model 3

Model 1

Model 2

Model 3

Model 1

Model 1

Warranty Scenarios


The Warranty Eco System can be complex

OEM

Customer

Service Center

Dealer

Distributor

Supplier

Supplier

Branch /

Plant

Abroad

Warranty processes go cross the borders…

◼ …of organizational units

◼ …of legal entities

◼ …of supply chain levels

Warranty deals with diverse organizational settings and players

◼ Direct an indirect sales organizations

◼ Consolidated and independent businesses

◼ Organizational units take different roles in different stages of the

process

◼ Frequently changing players (dealers and suppliers)

Supplier T2

OEM

Branch /

Plant

abroad


Warranty Processes

Company

Supplier

Customer

There are two main processes in warranty management.

Customer Claim

Management

Cost Recovery

Process

Internal Supplier


Warranty ScenariosCustomer Claim Management

▪ Create Claims from different sources

(Portal, EDI, XLS Upload, Directly in the

system)

▪ Check Warranty Policy

▪ Claim Validation

▪ Object Claims / Reject Claims

▪ Return Part Management

▪ Check Credit Competency

▪ Trigger FI postings for claims

▪ Post costs to the correct cost object

Claim

Processing

Claim

Creation

Claim

Payment

& Posting

Within the customer facing warranty process the goal is to manage and handle claims

submitted by customers.



Manufacturer / OEM

Supplier

• Claim submission via web portal, external

interface (e.g. DMS), Mail or phone.

• Detailed information on repair

Case-by-case processing

• (degree of automation is flexible)

• Claim data is received in batch-files (e.g.

Excel)

• Information to repair / defect may be only

partly available

• Mass processing relevance

• FI process differs as warranty costs are

deducted from OEM invoices

Claim

Processing

Claim

Creation

Claim

Payment

& Posting

There are two

major process

variants in the

automotive

industry


Warranty ScenariosCost Recovery Process

▪ Create Claims from different sources

(e.g. existing warranty claim, DMS

system, Maintenance order, service

order)

▪ Determine Vendor / Partner

▪ Validate Claim / Check Policy

▪ Send Claim

▪ Validate Claim Response

▪ Trigger FI postings for claims

▪ Post costs to the correct cost object

Claim

Processing

Claim / Version

Creation

Claim

Payment

& Posting

Within the vendor facing warranty process the goal is to recover costs from

internal (intercompany) or external (supliers recovery) sources.


Warranty ScenariosCost Recovery Process

Claim

Processing

Claim / Version

Creation

Claim

Payment

& Posting

There are two

major process

variants

Based on Claims(e.g. if the customer claim

process is used)

• Costs arising from the customer facing

process can be claimed internally (from a

different plant / entity) or externally (from

the respective vendor.

Based on Service Activities (service on internal assets, serialized equipment, …)

• Internal service activities (repair) for an

asset or the replacement of an asset can

be validated with regards to warranty

terms and conditions. If the requirements

are met, the costs can be claimed from

the respective vendor.

Process OverviewCustomer Claim Management „Manufacturer / OEM“


Perform second checks on claim regarding

warranty terms, Value thresholds, special

conditions,…

If necessary, postings can be reversed, changed and

then again posted. Due to the versioning concept, the

transparency is kept during the whole process.

Create the claims from dealer portal / inbound IDocs.

Enrich the claim with data from the reference object

(asset).

Perform first checks on a claim regarding

completeness (mandatory fields),

duplicates, master data,…

After potentially adjusting the claimed amount,

post the claim costs on the appropriate FI

accounts and CO objects.

Warranty Customer Process - OEM

Create Claim

Submit Claim

Perform formal checks

Check financial limits

Post costs on accounts

Reverse Posting

Correct Claim

Validate Master Data

Derive Prices

Perform content checks

Validate returning part

Financial

posting

Customer

Inbound

Processing

Claim CreationClaim

Correction

Customer

Outbound

Processing


▪ Within the warranty claim you can

have

▪ Integration of all relevant documents

in the SAP document flow

▪ Extended information about the

claim’s reference object directly on

the claim screen

▪ Pre-defined layouts for all relevant

table displays (claim positions,

navigation tree for previous claims,

etc.)

Customer

Inbound

Master Data

Cross functions

Claim

Creation

Customer

Outbound

Financial

Posting

Claim

Correction

A claim in SAP WTY


▪ The warranty claim uses the VSR

engine to validate claims.

▪ Possible validations are

▪ Mandatory field checks on all claim

levels

▪ Check for duplicate claims

▪ Checks for completeness of claim

…

Perform formal claim validations Customer

Inbound

Master Data

Cross functions

Claim

Creation

Customer

Outbound

Financial

Posting

Claim

Correction


▪ Derive the appropriate labor rates

based on country, dealer number,

etc.

▪ Reduce submitted prices

▪ By applying a specific percentage /

value based

▪ By setting a fixed value on the version

/ for an item

▪ By setting respective values per item

type (material, labor, sublet)

▪ By setting maximum values for items

Validate and adjust the prices Customer

Inbound

Master Data

Cross functions

Claim

Creation

Customer

Outbound

Financial

Posting

Claim

Correction


▪ Let claims only be released by the

user that has the right to do so.

▪ Maintain individual credit

competency – separate for credits

and reversals.

▪ Automatic forwarding to the next

higher level can be set up. Next

level approver can be notified by

email or workflow.

▪ Claims awaiting approval from

higher level are collected in a

separate status

Create (financial) approval levels for your claims Customer

Inbound

Master Data

Cross functions

Claim

Creation

Customer

Outbound

Financial

Posting

Claim

Correction


▪ Create FI postings directly out of the

claim. GL account determination (FI)

can be set up completely flexible

according to your needs /

requirements.

▪ Derive the relevant CO object

▪ Internal order

▪ Cost Center

▪ Service Contract

▪ PSP elements

▪ …

▪ Find all documents easily via the

document flow.

Post your claims in SAP FI / CO Customer

Inbound

Master Data

Cross functions

Claim

Creation

Customer

Outbound

Financial

Posting

Claim

Correction


▪ Create a claim statement document

with the message determination

framework directly when performing

the claim posting.

▪ All issued forms and statements are

automatically added to the claim’s

attachment list.

Issue a claim statement document Customer

Inbound

Master Data

Cross functions

Claim

Creation

Customer

Outbound

Financial

Posting

Claim

Correction

Process OverviewCustomer Claim Management „Supplier“



Manufacturer / OEM

Supplier

• Claim submission via web portal, external

interface (e.g. DMS), Mail or phone.

• Detailed information on repair

Case-by-case processing

• (degree of automation is flexible)

• Claim data is received in batch-files (e.g.

Excel)

• Information to repair / defect may be only

partly available

• Mass processing relevance

• FI process differs as warranty costs are

deducted from OEM invoices

Claim

Processing

Claim

Creation

Claim

Payment

& Posting

There are two

major process

variants in the

automotive

industry


• The supplier only

get’s a very small

snapshot (usually 2 –

5%) of the parts that

are really failing. All

remaining parts are

charged but not

physically sent back.

• Reimbursement is

often “self-taken” via

initial debit (under-

payment of parts

delivery)

Situation

Communication in field via excel list

Defective

Part

Replacement

Part

8D analysis report

Usually just 2% - 5%

Customer claim data

(e.g. via Excel file)

WTY Claim


Warranty Customer Process - Supplier

XLS

Claim/Notification

Creation

Claim

Correction

Claim

Processing

Financial

Posting

Handle claims individually or collectively:

Post the claim amounts on the appropriate

FI accounts and CO objects.

Create claims & notifications

out of Excel file. Apply updates

if required.

File Upload

Create Documents

File Updates

Validations

Review Claims

Collective Objection

Intial Debit

Distribute Debit

Collective Posting

Correct Claim

Reverse Posting

Claims can be reverse posted, changed

and then posted again. Due to the

versioning concept, the transparency of

what was changed is given.

Perform validations e.g. on warranty terms,

value thresholds, special conditions. Review

claims manually only if necessary. Send

collective objection report to the customer.


Data in internal format, converted

out of external and enriched by

SAP data

The Upload Tool is structured into the

three parts

Header Data

The header holds all general data

like file name, uploading status,

customer or file receive date.

External Data

This section holds the unconverted

data rows and header information

of the uploaded excel file.

Internal Data

This section contains Data in an

internal format, converted out of

external data lines and enriched by

SAP data.

Master Data

Cross functions

Claim / Notification

Creation

Claim

Processing

Financial

Posting

Claim

CorrectionUpload your customer files with the upload tool

Header

Excel Data (External data)

SAP Data (Internal data)


Use different mappings to convert the data

Data in internal format, converted

out of external and enriched by

SAP data

Master Data

Cross functions


Creation

Claim

Processing

Financial

Posting

Claim

Correction

▪ Individual file mappings

You can setup individual file

mappings for each partner. Also

multiple file structures for partners

are possible.

▪ Data conversions

Use predefined DDIC conversion

logic or function modules to

convert the data in a SAP

compatible format.


▪ Each line item of a customer file

creates a warranty claim in the

system.

▪ All claims are processed at once,

which means they are validated

regarding the relevant rules (e.g.

technical factor, warranty terms,

duplicates …).

▪ If needed, you can directly jump to

related master data (partner,

material …) with a double-click.

Master Data

Cross functions


Creation

Claim

Processing

Financial

Posting

Claim

CorrectionCreate Claims for each customer file line item


▪ Based on the Validation results,

you can object all respective

claims in one document / print out.

▪ You can define the reasons that

are relevant for objecting claims

and bring them in a relevant

priority.

▪ The Output document (PDF) can

be sent to the vendor

automatically or downloaded for a

manual communication. The

document is also attached to the

claims’ document flow.

Master Data

Cross functions


Creation

Claim

Processing

Financial

Posting

Claim

CorrectionObject for multiple claims of a customer file


▪ Create an additional claim with a

different claim type that is used to

perform the complete FI / CO

posting at once.

▪ Add a line item for each claim with

the respective financial value of

this respective claim.

▪ Use the hotspot navigation to jump

into the details of the individual

claim with one click.

Master Data

Cross functions


Creation

Claim

Processing

Financial

Posting

Claim

CorrectionCreate a collective claim for financial posting


▪ Create FI postings directly out of the

claim. GL account determination (FI)

can be set up completely flexible

according to your needs /

requirements.

▪ Derive the relevant CO object

▪ Internal order

▪ Cost Center

▪ Service Contract

▪ PSP elements

▪ …

▪ Find all documents easily via the

document flow.

Master Data

Cross functions


Creation

Claim

Processing

Financial

Posting

Claim

CorrectionCreate one transparent FI posting for all claims


▪ Free selections dialogue including

all fields (customer fields to

standard structures are included

automatically).

▪ Worklist function: Selecting your

own claims with one click.

▪ Calculated values (KPIs) can be

defined freely and shown with the

claims.

▪ Additional information can be read

into the results list, such as:

▪ Long texts

▪ error logs

▪ …

Master Data

Cross functions


Creation

Claim

Processing

Financial

Posting

Claim

CorrectionKeep track of all your claims with the warranty

workbench

Process OverviewCost Recovery


Perform Decision Check

Upon receipt of the decision by the

supplier a potential correction of the

requested amount will be made

WTY Supplier Recovery

Claim Version CreationFinancial

posting

Claim

Correction

Reverse Claim

If necessary, postings can be reversed,

changed and then again posted. Due to

the versioning concept, the transparency

is kept during the whole process.

Create Claims / versions

Start from an existing customer claim or with

a new claim, enrich the claim with data from

the reference object (equipment, VMS

vehicle,…), vendor and material master

Validate claims

Perform checks on the claim

regarding completeness

(mandatory fields), duplicates,

warranty, master data, …

Supplier

Outbound

Processing

Supplier

Inbound

Processing

Post claims

After decision check, posting of the

costs is done on the appropriate FI

accounts and CO objects


WTY Supplier Recovery Process OverviewClaim Creation

▪ Claim creation from external

source in dialog (manually or

automatically) or in batch mode

▪ Automatic determination of vehicle

or equipment from serial number

▪ Automatic determination of

dependent data like master

warranty, warranty start date,

partner etc.

▪ Display of all determined data

within the warranty claim

▪ Direct access to master data

through forward navigation

Create

Claim

Master Data

Cross functions

Claim

Sources

Vendor

Outbound

Vendor

Inbound

Claim

Correction


WTY Supplier Recovery Process OverviewVendor Outbound processing

▪ Automatic Vendor Determination

• Typically using purchasing

information (source list & purchasing

info record)

• Option to use BAdI for own

determination

▪ Cost Collector

• Determination of costs related to the object

(scrapping / QM related costs)

Create

Claim

Master Data

Cross functions

Claim

Sources

Vendor

Outbound

Vendor

Inbound

Claim

Correction



▪ Warranty Determination by

• Technical Object with multiple master

warranty assignment

• Spare Part warranty

▪ Warranty Check

• Dedicated profile to cover customer

specific warranty checks

• Using additional sources, e.g.

contracts

Create

Claim

Master Data

Cross functions

Claim

Sources

Vendor

Outbound

Vendor

Inbound

Claim

Correction



▪ Return Parts Determination

• Define parts to be returned to vendor

• Automatic determination during

processing of claim

• Set usage of parts, decision code and

status

• Decide either to get the costs

reimbursed or to get a new part. In

this case the value of the material

item is zero. But labor costs and

additional fees will be charged.

Create

Claim

Master Data

Cross functions

Claim

Sources

Vendor

Outbound

Vendor

Inbound

Claim

Correction


WTY Supplier Recovery Process OverviewVendor Inbound processing

▪ Dunning Procedure

• In case the decision is overdue, the

vendor can be reminded

• The functionality is included in the

action framework.

• Standard message framework is used

to send messages

▪ Value correction

• The IV version contains the same

values as the OV version.

• Decision from vendor may have

different values

• A screen is provided to easily adjust

these values in the IV version

Create

Claim

Master Data

Cross functions

Claim

Sources

Vendor

Outbound

Vendor

Inbound

Claim

Correction


WTY Supplier Recovery Process OverviewClaim Correction

▪ Claim Correction

• In case the claim has not been fully

reimbursed or rejected, it is possible

appeal the decision

• The starting point is again an OV

version which will be copied from the

latest IV version

• The data is the same except the fact

that the amount to be claimed will be

reduced to the difference between the

latest OV and IV versions

• The process of submitting the new

OV version and receiving the result is

identical to the versions before

Create

Claim

Master Data

Cross functions

Claim

Sources

Vendor

Outbound

Vendor

Inbound

Claim

Correction

Report options


The Shift from Data to Intelligence

Organizations that provide people with the intelligence to make

better decisions and enable them to act in the moment, will outperform.

Data Information Insight Action VALUE

42


What Are Your Most Important Decisions?

How can we uncover fraud attempts

in a high volume of warranty claims?

How can we identify failure

patterns earlier to ship better

products and save cost?

How can we create do we drive

maximum cost new business

models (usage-based, full-

service-leasing, extended

warranties)?

DECISIONS

DECISIONS

DECISIONS

DECISIONS

DECISIONS

DECISIONS

DECISIONS

How do we optimize our automatic

processing to keep competitive

advantage of individual responses but

also free up time to do more

meaningful work?

How do we manage our accruals to

optimize our cash flow but also

cover financial risks?


PredictiveBusiness Intelligence Planning

Sharing

Simulation

Data Preparation

Storytelling

Forecasting

Automated Insights

SAP Cloud Platform

Unified experience for Planning, BI and Predictive all in one service

Live data connectivity enables SaaS for everyone

End-to-end analytics for the Intelligent Suite

SA

P A

naly

tics H

ub

On Premise CloudHybrid

Application Design

Custom Apps

SDK Extensions Mob

ile

SAP Digital Boardroom

Overview and StrategySAP Analytics Cloud is one | simple | cloud


On-Premise

3rd Party

SAP Analytics Cloud can live-access data in S/4HANA

SAP S/4HANA

DIGITAL BOARDROOM + WEB + MOBILE + NLP

SMART BUSINESS INTELLIGENCE +

COLLABORATIVE ENTERPRISE PLANNING + PREDICTIVE ANALYTICS

INDUSTRY SOLUTIONS LINE OF BUSINESS SOLUTIONS +

SAP HANA SAP BW/4HANA 3rd PARTY APPLICATIONS+ +

C-Suite

Executives

IT and

BI Architects

Business

Users

Backend /

onPremise

Frontend /

Cloud

Direct Access /

No sync required*

*When using HANA or other supported data sources


Use the Exploration Mode to investigate

Drill through your data


Create stories to present your analysis in meaningful way

Stories present the analytical content, which can be shared across the enterprise


Sender

recipient

sender

Sender

Share your stories with all relevant recipients / stakeholders

Deployment possibilities


Use SAP methodology to identify gaps

Model CompanyGet ready to use, preconfigured processes to accelerate your SAP solution deployment.

• Get a reference solution with preconfigured processes

• Simplify all phases of your deployment project including discovery and user adoption

• …

Engineered Service (ACS)

Get a best-practice configuration for existing modules / processes

Use project solutions for potential remaining gaps to reduce costs and risks


Short implementation phases

Optimized delivery concepts based on over 15 years of project

experience allows an efficient implementation saving time and

resources. Pre-developed, pre-tested ACS content and pre-created

project templates are reducing the time for Go-Live perceptibly.

Optimized Claim Management processes

Improved warranty management processes are helping to avoid

unjustified payments due to false complaint data as well as an

accelerated and simplified objection process.

Modular solution architecture for fix price

The modularized solution allows to implement only necessary parts for

a fix price and simple enhancements at any time.

Pre- developed objects & content

Preconfigured and -devolved features are reducing project costs for

implementation and failures. Use a bunch of 2000+ pre-developed

ABAP objects to save costs for expensive custom developments you

would need instead.

Engineered Services (ACS for Warranty Management)Customer Benefits – Cost savings


Engineered Services (ACS for Warranty Management)Customer Benefits – Low integration risk

Low impact on existing ERP landscape

The ACS Warranty is connected to SAP standard components, such

as FI or SD using several BAdIs and user exits. The developments are

located into it’s own ACS namespace with the result, that the code

works 99,99% without any modification. This reduces the impact on

your running system and it’s stability significantly.

Proven & tested solution of over 15 years

The solution has proven it’s performance and stability of the 2000+

tested ABAP Objects for many years at manifold projects, system

landscapes and customers. In comparison to normal custom

developments there are no surprising bugs during implementation.

This allows a very smooth implementation.

Long term support & service

As the ACS is based on the SAP standards, a long term support &

service is guaranteed. This safeguards your investments also for a

long term perspective.


Implement ACS in alignment with SAP Activate

Project

Lifecycle

Experience

Trial

Install

Fit/Gap, Scope

and configure

Analyze your gaps directly on

a running prototype in your

system environment.

RunRealizeDiscover Prepare

Migrate,

integrate,

extend, test

Quick Delivery by transport

and config guides

Onboard,

Deploy

Reduced risks due to many

previously done Go-Lives,

Cut-over lists, etc.

Request a demo of your

relevant processes

Explore Deploy

High software quality,

existing test scripts


Source of Information

▪ Internet

Overview-, Detail- and Customer presentations

http://www.sap.com/acs

▪ OSS-System

Notes

(Search term: Automotive Consulting Solutions)

▪ Email - distribution list

Signing up through [email protected]

http://www.sap.com/acs

Questions

Thank you.

Clemens Paulus

Senior Warranty Consultant

Consulting Automotive

SAP Deutschland SE & Co. KG

Hasso-Plattner-Ring 7

69190 Walldorf, Germany

M +49/151/438 19510

E [email protected]

mailto:[email protected]