Pre-authorization

  • Release version: Australia
  • Updated March 12, 2026
  • 1 minute to read

    • 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 authorized by the Warranty Specialist. When a claim is created, approved pre-authorization requests can be used to generate claim jobs, avoiding reentering of claim details. This streamlines approval workflows and reduces processing delays.

    Use case: Warranty pre-authorization request and approval

    Scenario

    James, a dealer warranty administrator, must obtain approval before a technician repairs a customer vehicle's air conditioning system. High-cost warranty repairs require pre-authorization, but manual processes create friction:

    • System disconnection: Disconnected systems cause delays and incomplete data entry
    • Data inconsistency: Inconsistent labor codes and missing cost details require rework
    • Visibility gap: Limited request visibility frustrates both dealers and OEMs
    • Operational friction: Approved data must be re-entered when creating repair claims
    Solution

    MCO streamlines pre-authorization through a unified portal and guided workflow.

    James uses the MCO Dealer Portal to submit a pre-authorization request.

    Angela, a warranty specialist, uses the MCO workspace to review and approve the request.
    • Dealer Submission: James accesses the MCO Dealer Portal. Auto-loaded vehicle assets and a guided playbook assist with the submission. He enters vehicle details (VIN, work order, issue), adds warranty claim jobs (parts, labor, miscellaneous costs), and submits for approval.
    • OEM Review: Angela, a warranty specialist, reviews pending requests in the MCO workspace. She can approve, partially approve with line-level edits, or reject with feedback. All actions create audit trails for compliance.
    • Claim Creation: Once approved, James converts the pre-authorized request to a repair claim without re-entering information.
    Benefits
    Compare the workflow improvement:
    Table 1. Pre-authorization request benefits
    Without MCO With MCO Pre-Authorization
    Manual multi-system data entry Single portal with auto-loaded assets and guided templates
    Inconsistent labor codes and costs Standardized labor codes and complete cost capture in one place
    Slow approval cycles with back-and-forth Real-time visibility and line-level partial approval with feedback
    Full data re-entry for repair claims Pre-approved requests convert directly to claims—no re-entry
    Outcome

    James submits a complete pre-authorization request for high-cost air conditioning repair. Angela reviews and approves with transparent feedback. After repair completion, James converts the approved request to a repair claim instantly, reducing processing time and ensuring compliance.