Check Formula Warranty For Free

Divide the amount of your actual warranty claims in the most recent year by your total sales in the same year to calculate your warranty claims as a percentage of sales. For example, if you had $1,600 in warranty claims and $80,000 in sales, divide $1,600 by $80,000.

If the item's expiration date is n years in the future, you also use the formula EDATE(startdate,month). For instance, the start date is 3/1/2020, the warranty period is 1 year (12 months), use the formula:=EDATE(C6,12).

To estimate the warranty expense for a company, we need to know three main things:Number of units sold during a particular accounting period.Percentage of the sold products that will probably need a repair or a replacement based on previous experiences.Average cost of repairing or replacing products under warranty.

To estimate the warranty expense for a company, we need to know three main things:Number of units sold during a particular accounting period.Percentage of the sold products that will probably need a repair or a replacement based on previous experiences.Average cost of repairing or replacing products under warranty.

If you need an expiration date at the end month, use the EOMONTH function, which returns the last day of the month, n months in the future or past. An easy way to calculate the 1st day of a month is to use EOMONTH to get the last day of the previous month, then simply add 1 day.

Warranty expense is the cost that a business expects to or has already incurred for the repair or replacement of goods that it has sold. The total amount of warranty expense is limited by the warranty period that a business typically allows.

Apply the percentage to your sales forecast for the upcoming period. For example, suppose you project $100,000 in sales for the next quarter. If you estimate that 1 percent of revenues will pay for warranty costs, multiply $100,000 by 0.01 to find the warranty liability of $1,000.