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            Example: Supplier Recovery Claims in Manufacturing Cloud

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            Example: Supplier Recovery Claims in Manufacturing Cloud

            Capture information about claims, claim items, claim details, claim coverage, and claim coverage payment details.

            Required Editions

            Available in: Enterprise, Unlimited, and Developer Editions

            Oyster World Drillers, a distributor, submits the warranty claim for defective generator parts to Marine Exploration Corporation, the manufacturer. Marine Exploration Corporation reimburses the amount as stipulated in the warranty.

            After paying Oyster World Drillers, the Supplier Recovery Specialist for Marine Exploration Corporation raises supplier recovery claims for the causal parts to seek reimbursement for the defective parts from the suppliers.

            Supplier and Contract Information
            Suppliers Supplier Product Contract Sales Contract Line
                Contract Number Account Contract Product Unit Price in US Dollars Expense Recovery Type Part Return Required?
            Jellyfish Parts Co. Rotor C001 Jellyfish Parts Co. C001 Rotor 4000 Part Expense Yes
            Crab Energies Inc. Battery C002 Crab Energies Inc. C002 Battery 6000 Total Expense No
            Example
            Example Record A: Supplier Recovery Claim

            Here’s the supplier recovery claim information for the first causal part of the defective generator, submitted by Marine Exploration Corporation to their supplier, Jellyfish Parts Co.

            RecordExample
            Claim Marine Exploration Corporation raises a claim to reimburse the expenses incurred because of defective parts provided by Jellyfish Parts Co. The supplier recovery claim record is automatically created from the existing warranty claim.
            Claim Item The supplier recovery claim record contains information regarding the defective asset, that is the Marine Generator Gold Y JS0609.
            Claim Coverage

            Marine Exploration Corporation creates a claim coverage:

            • Name: Rotor replacement
            • Causal Part: Rotor XE 509
            Claim Coverage Payment Detail

            Calculating the claimed amount details for the claim coverage:

            • Jellyfish Parts Co.

              Claim Coverage: One rotor replacement
              • CCPD1: Rotor replacement claimed amount = 1 X $4000 = $4000

                The unit price for Rotor XE 509 is derived from the contract C001.

              • CCPD2: Labor for replacing the rotor claimed amount = 1 X $500 = $500

                This amount is manually derived from the corresponding warranty claim coverage payment detail.

                However, Marine Exploration Corporation must remove the labor expenses before raising the supplier recovery claim, because according to the contract, only part expenses are covered.

              Comment: Returning the rotor based on the contract terms.

            • Total Claimed Amount = $4000

            Marine Exploration Corporation submits the claim to the supplier for reimbursement.
            Example
            Example Record B: Supplier Recovery Claim

            Here’s the supplier recovery claim information for the second causal part in the defective generator, submitted by Marine Exploration Corporation to their supplier, Crab Energies Inc.

            RecordExample
            Claim Marine Exploration Corporation raises a claim to reimburse the expenses incurred because of defective parts provided by Crab Energies Inc. The supplier recovery claim is automatically created from the existing warranty claim.
            Claim Item The supplier recovery claim record contains information regarding the defective asset, that is the Marine Generator Gold Y JS0609.
            Claim Coverage

            Marine Exploration Corporation creates one claim coverage:

            • Name: Defective battery
            • Causal Part: Battery MK 444
            Claim Coverage Payment Detail

            Calculating the claimed amount details:

            • Crab Energies Inc.

              Claim Coverage: Overheating battery
              • CCPD1: Replacing rotor claimed amount = 1 X $6000 = $6000

                The unit price for Rotor XE 509 is derived from the contract C001.

              • CCPD2: Labor for replacing defective rotor claimed amount = 1 X $500 = $500

                This amount is manually derived from the corresponding warranty claim coverage payment detail.

            • Total Claimed Amount = $6000 +$500 = $6500

            Marine Exploration Corporation submits the claim to the supplier for a payout.
             
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