Claims setup

You must configure the number series, item charges and location to be used for claim handling on the Claims Setup page. The following procedure describes how to set up claims.

1. Select the Search icon , enter Claims Setup, and then choose the related link. The Claims Setup page opens.

2. On the Claims Setup page, on the General FastTab, in the Sales Price Adjustment Item Charge field, select the required option to specify an item charge that will be used to handle the price adjustment process in the sales claim. With this setting, the line Type field is set as Charge (Item) for claims on the Sales Return Order page.

3. In the Purchasing Price Adjustment Item Charge field, select the required option to specify an item charge that will be used to handle the price adjustment process in the purchase claim. This setting sets the line Type field as Charge (Item) for claims on the Purchase Return Order page.

4. In the Charge Assignment Method field, select one of the following methods to distribute the item charge assignment on the purchase return order when the document has more than one line of type Item. The available methods are:

   Option	Description
   Equally	This method assigns the item charges equally between the lines.
   By Amount	This method assigns the item charges based on the number of items associated with the claim.
   By Weight	This method assigns costs based on the product’s weight associated with the claim.
   By Volume	This method assigns costs based on the volume of the product associated with the claim.

5. In the Return Location Code field, select the location to place the products returned by the customers.

6. Turn on the Combine Documents toggle to create Return documents while choosing the Action Type on the Claims page as Return or Credit. When you choose Credit, the Return documents are created with the charged item.
   If you proceed by turning off the Combine Documents toggle and choose the Action Type as Return on the Claims page, it leads to the creation of Return documents. When you choose the Action Type as Credit, it leads to the creation of Credit Memos.

7. In the Claim Calculation Method field, choose a price calculation method for the Claims documents. The calculations on the Claim documents take place based on the following formulas:

   Claim Calculation Method	Action Type	Formula
   New Price	Return	Claim Unit Price Excl. VAT = Claim Applied Price Unit * Claim Quantity Expressed in the UoM Claim Applied Price Unit = Claim Unit Price Excl. VAT/Claim Quantity Expressed in the UoM Claim Line Amount Excl. Tax = Claim Unit Price Excl. VAT * Action Quantity Amount = Action Qty. * Qty. Expressed in UoM * Claim New Applied Price Unit
   New Price	Credit	Claim Unit Price Excl. VAT = Claim Applied Price Unit * Claim Quantity Expressed in the UoM Claim Line Amount Excl. Tax = Action Quantity * Claim Quantity Expressed in the UoM * Claim New Applied Price Unit Amount = Action Qty. * Qty. Expressed in UoM * (Applied Direct Unit Cost – Claim New Applied Price Unit)
   Claim Price	Return or Credit	Claim Unit Price Excl. VAT = Claim Applied Price Unit * Claim Quantity Expressed in the UoM Claim Applied Price Unit = Claim Unit Price Excl. VAT/Claim Quantity Expressed in the UoM Claim Line Amount Excl. Tax = Claim Unit Price Excl. VAT * Action Quantity

8. In the Issuer Item No. field, enter the number of the non-inventory item that will be used on the purchase credit memo documents generated for the issuers.
9. In the Credit Memo Charge Item field, select the item charge that will be inserted in the purchase credit memos created from the sales documents.
   You can either utilize the identical item charge specified in the purchase price adjustment field or opt for an alternative charge item.
10. On the No. Series FastTab, fill in the required fields.
11. On the Dump Order FastTab, fill in the following fields: