NACD DEALER ADVANCE CORE CREDIT PROCEDURE FOR WARRANTY PARTS RETURN REQUESTS (PRR'S) Caterpillar

February 2000

NACD DEALER ADVANCE CORE CREDIT PROCEDURE FOR WARRANTY PARTS RETURN REQUESTS (PRR'S)

Effectively immediately, NACD dealers will benefit from a new program whereby the Reman Products Group will issue core credits in advance of the physical receipt of the warranty PRR.

The primary objective is to improve the timeliness of issuing core credit to dealers, which has been a long-standing dealer complaint of this entire process. After testing this new process, we believe our objective will be accomplished by having PRR core credits issued as timely as normal core credit processing.

Fundamentally, the procedures remain the same as the current process for the dealer and internal personnel. Refinements have been made in the CMIS system and CCR processing edits have been put in place to allow the advance core credit process to work. The dealer is expected to follow some slight procedural changes as described below. In addition, further refinements have been made concurrent with our CMIS II project that will make it easier for the dealer as also mentioned below when CMIS II is available after June 1, 2000.

NACD DEALER ADVANCE CORE CREDIT PROCEDURE FOR WARRANTY PRR'S

The NACD dealer is required to perform the following steps. If the procedure is not followed, the transaction will not be processed (griefed) and no advance core credit will be issued.

1. Dealers will be required to enter the letters PR with a case number and location code as shown at the end of this procedure, in the case number field on the Core Credit Request (CCR) indicating the location the dealer is shipping the part. This format will not be required for DBS or NONDBS dealers when CMIS II is implemented.

   Example: Enter PRZ09001 in the CASE NUMBER FIELD. The "PR" indicates it is a parts return request; the Z090 is the shipping code for a specific ship to location; the "01" indicates that it is in case one (the two digit field allows from 01 to 99 case number assignments).

   If a dealer elects to use something different than described above, the CCR will be processed, but no advance core credit will be issued.
    

2. Dealer will be required to enter a valid AVS warranty claim number and prime product serial number from the Parts Reman Request on the Core Credit Request (CCR). This will not be a requirement for DBS dealers when CMIS II is implemented since these fields will be automatically populated. It will continue as a requirement for Non DBS mailbox dealers.
    

3. Dealer can submit the Core Credit Request in one of two ways: 1) submit an electronic transmission of the Core Credit Request to the AVS mailbox; or 2) use the Core Management Information System (CMIS) to submit CCR's directly to AVSpare. Advance Core Credit will not be given to any dealer that only processes manual CCR's.
   
   Note: The AVSpare Core Management Information System (CMIS) will validate the case number field, the AVS warranty claim number, the prime product serial number, and the Reman part number.
   
   a. If all conditions are valid, an entitlement will be deducted and 100% core credit will be issued to the dealer.
   
   b. If the case number field, warranty claim number, prime product serial number and part number is not entered, or valid, the CCR will be griefed with one of the following messages: missing case number field, invalid location for PRR, invalid warranty number, or missing warranty number, invalid prime product serial number, or missing serial number. The dealer will have to reenter the correct information to receive the advance core credit.
    

4. If a warranty claim is rejected, all cores will be returned to the dealer and the dealer will be debited. The dealer will have to issue a new CCR to recover the core deposit.
    

5. Dealer is responsible to tag the warranty items with a PRR and enclose a paper copy of the CCR in the physical shipment as currently performed.

AVSpare will make every effort to provide timely processing of PRR's. In the event a claim is rejected, a Corinth analyst will manually issue a debit to the dealer, cancel the CCR, and restore the dealers entitlement(s). This procedure is performed today.

In addition, CMIS II is currently planned for NACD dealers after June 1, 2000. For Dealers that have the Dealer Business System (DBS), when Dealer Channel System's (DCS) completes the DBS enhancements for a release following Release 2.3, and CMIS II users, the same procedures will be used except that the serial number will be obtained from the warranty system and passed automatically to the CCR requiring no entry. Non DBS mailbox dealers will be required to enter a valid warranty number and serial number. Also, DBS or non DBS dealers will be able to use any format in the case number field.

Procedural Questions

Questions concerning this procedure should be directed to Del S. Hume, Reman Products Group, Phone: 309-675-5652 or Fax: 309-675-1586.

APPROVED CASE NUMBER FORMATS

Below is a list of the approved Case Number Formats required in the case number field on the Core Credit Request (CCR) to receive an Advance Core Credit. Example: enter PRZ09001 in the CASE NUMBER FIELD on the Core Credit Request (CCR).
 

Effective January 1, 2000