Cancel Coverage for Sales Orders

You can cancel coverage for a sales order that's in Processing status.

If the sales order is in Closed status or Partially Closed status, then you must return it.
You can cancel coverage but not return the covered item. For example, a customer might decide to cancel a six month warranty for a laptop computer during the third month of the warranty period, but keep the laptop computer, which is the covered item.
If you cancel only the coverage item, and don't return the covered item, then Order Management sets the return quantity of the coverage item to the returnable quantity. You can't change this value.
If Order Management already fulfilled the coverage item, then you must create a separate return order to return it.

In this example, you cancel the coverage item but don't return the covered item.

This topic uses example values. You might need different values, depending on your business requirements.

Cancel coverage for a sales order:

Go to the Order Management work area, then click Tasks > Manage Orders.
On the Manage Orders page, search for the sales order that includes the coverage you must cancel.
In the Search Results, in the Order column, click the link to the sales order that contains the coverage you must cancel.
On the Order page, click Actions > Create Revision.
In the Order Lines area, in the row that includes the coverage item you must cancel, click the down arrow at the far right of the line, and then click Cancel Line.
In the Cancel Line dialog, select a reason, then click OK.
On the Order page, click Submit.

Order Management cancels the coverage line, then prorates the portion of the coverage item that the customer didn't use as a credit memo.

Assume the customer purchased a coverage item for a 12 month warranty for $120. Each month costs $10. The customer cancels the warranty in the middle of the sixth month of the warranty period. Order Management fulfilled six months of the warranty, so Order Management creates a credit memo in the amount of $60.