Pre-authorization
Summarize
Summary of Pre-authorization
A pre-authorization request in ServiceNow’s warranty management is a process to confirm approval prior to initiating repair activities, material procurement, or labor costs covered under warranty or service agreements. This ensures all inspections and criteria are met and authorized by a Warranty Specialist before work begins. Approved pre-authorization requests can directly generate repair claim jobs, enhancing operational efficiency and quality assurance by avoiding duplicate data entry.
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Dealer Submission Process
- Dealers use a unified MCO Dealer Portal to submit pre-authorization requests, accessing recall campaigns, repair claims, and requests in one place.
- Vehicle details (e.g., VIN, mileage), work order numbers, and issue descriptions are entered with auto-loaded vehicle assets linked to the dealership.
- A guided playbook assists dealers step-by-step in completing pre-authorization details, including job entry.
- Claim jobs are added with warranty type, causal parts, actions (like replacement), labor codes, and costs.
- Miscellaneous expenses such as customer pickup services can be included, with review and submission handled through the portal.
OEM Review Process
- Warranty specialists review requests via the MCO workspace, with access to a queue of pending submissions.
- Line items for parts, labor, and costs are clearly organized for detailed review.
- Partial approvals allow editing individual lines to adjust costs or services as per warranty policies.
- Approval actions are logged to ensure full traceability and audit readiness.
- Clear feedback is provided to dealers on any modifications or rejections.
Key Benefits
- Unified Access: A single portal reduces system switching for dealers, streamlining workflow.
- Faster Submissions: Auto-loaded vehicle assets and guided playbooks minimize manual entry and errors.
- Standardized Data: Use of OEM-provided labor codes ensures consistent, accurate data.
- Complete Cost Capture: Parts, labor, and miscellaneous expenses are managed in one interface.
- Line-Level Flexibility: Partial approvals allow precise cost adjustments in the review process.
- Transparent Feedback: Clear comments explain approval decisions to dealers for better communication.
- Full Traceability: Logged actions provide audit trails for compliance and quality assurance.
- Streamlined Claims: Pre-approved requests can be converted directly into repair claims without reentry, saving time and improving accuracy.
Outcome
Dealers can efficiently submit accurate, complete pre-authorization requests that include parts, labor, and service costs. Warranty specialists review and partially approve requests with transparent feedback. Following repair completion, dealers convert the approved requests into repair claims without duplicating data entry, accelerating processing and enhancing warranty management compliance.
A pre-authorization request is a process to confirm the approval before initiating activities, such as repairs, material procurement, or labor costs that are included under warranty or service agreements. This procedure confirms that all required inspections and criteria are satisfied and duly authorized by the Warranty Specialist. When a claim is created, approved pre-authorization requests can be used to generate claim jobs, avoiding re-entering of claim details. This process promotes quality assurance and operational efficiency in the process.
Use case: Warranty pre-authorization request and approval
James, a dealer warranty administrator, must submit a pre-authorization request before a technician begins repair work on a customer vehicle with a non-functioning air conditioner system. High-cost repairs under warranty require pre-authorization, but the process faces several challenges:
- Disconnected systems and incomplete data cause request delays
- Manual data entry across multiple platforms increases errors
- Lack of standardized labor codes creates inconsistencies
- Missing cost details lead to back-and-forth communication
- Limited visibility into request status for both dealers and OEMs
- Reentering approved request data when creating repair claims wastes time
Dealer Submission Process.
James uses the MCO Dealer Portal to submit a pre-authorization request:
- Accesses unified portal with recall campaigns, repair claims, and pre-authorization requests in one place
- Initiates new request where MCO auto-loads vehicle assets linked to the dealership
- Enters vehicle details including VIN, request date, work order number, mileage (km), and issue description
- Launches guided playbook with step-by-step guidance through pre-authorization details, job entry, and preview
- Adds claim job selecting warranty type, causal part (AC compressor assembly), action (replacement), and work description
- Enters replacement part details including quantity, unit cost, and applicable tax
- Selects a standardized labor code with three hours, base amount, and applicable tax
- Adds miscellaneous costs for customer pickup services, then reviews and submits the request
OEM Review Process.
Angela, a warranty specialist, uses the MCO workspace to review and approve the request:
- Views queue of submitted pending pre-authorization requests in the workspace
- Opens James's request and reviews organized line items for parts, labor, and costs
- Selects Partially Approve making individual lines editable for line-by-line review
- Approves parts and labor but reduces customer pickup service from the requested amount to $250 with feedback that warranty policies cover pickup service up to a maximum of $250
- Submits approval with logged actions creating full traceability
After repair completion, James uses the pre-approved request to create the repair claim without reentering information.
- Unified access: Single portal eliminates system switching for dealers
- Faster submissions: Auto-loaded assets and guided playbooks reduce entry time
- Standardized data: OEM-provided labor codes ensures consistency
- Complete cost capture: Single interface for parts, labor, and miscellaneous expenses
- Line-level flexibility: Partial approval enables precise adjustments
- Transparent feedback: Clear comments explain approval decisions
- Full traceability: Logged actions support compliance and auditability
- Streamlined claims: Pre-approved requests eliminate data re-entry for repair claims
James successfully submits a complete pre-authorization request with parts, labor, and service costs. Angela reviews and partially approves the request with clear feedback on the adjusted pickup service amount. After repair completion, James converts the pre-approved request to a repair claim without reentering data, reducing processing time and ensuring accurate, compliant warranty management.