CORE ATTRITION POLICY CHANGE IMPACTING CMIS 2 ENTITLEMENT REINSTATEMENT RULE FOR MAJOR COMPONENTS RETURNED AS SURPLUS ON A PRA Caterpillar

  September 2002  

CORE ATTRITION POLICY CHANGE IMPACTING CMIS 2 ENTITLEMENT REINSTATEMENT RULE FOR MAJOR COMPONENTS RETURNED AS SURPLUS ON A PRA

Currently, the Core Attrition Policy guideline for NACD and LACD dealers that have converted to the Core Management Information System (CMIS 2) is as follows. At the time Caterpillar issues the final PRA credit to the dealer, entitlements are checked to determine if there are open entitlements. If the dealer does not have open entitlements, no core credit is allowed. If the dealer has no open entitlements, but has had an entitlement attritioned by Caterpillar, the entitlement is automatically reinstated so that core credit can be issued.

Effective with any dealer PRA credits issued on or after September 1, 2002, the automatic reinstatement feature will be removed for major components only. Dealers that return major components on a surplus PRA without entitlements will only receive credit for the product price.

The inventory stocking philosophy for Reman Major Components is that these products are to be used as a replenishment for Exchange Inventory Seed Program (EISP) items or ordered on a Future Dated Ordered (FDO) basis, and should be treated as a non-stocked item. It was felt that reinstating entitlements after they have been attritioned, even though they are surplus Reman Parts, would not be compatible with this philosophy.

Core Management

Please refer to the Caterpillar? Core Management Information System (CMIS 2) Parts Information application describing all Reman part/CAF and related information. Also refer to other CMIS 2 inquiry applications such as Customer Profiles, Inspection Reason Codes, Inspection Line Inquiry, Add Charge Information, Entitlement Activity, Entitlement Inquiry, CCR Inquiry, CCR Entry, Shipment Processing; Process Packaging Grief; and Reporting to properly manage core returns and monitor inspection performance.

This information will be available to all dealers worldwide after your CMIS 2 conversion date. In the meantime, please continue to use the current CMIS Entitlement Parts Inquiry Screen describing the list of parts in a Core Acceptability Family (CAF) and related part number detail.

For the latest updates of Reman Policies and Core Management (SELD0122), Core Management Systems & Operations Procedures (SELD0040), and Shipping Instructions (SELD0039), go to the Reman website and click on Procedures and Policies (listed under Reman Program Information).

If you have any questions regarding core return processing, feel free to call your Corinth Dealer Service Representative toll free at (800) 537-2928 or use our e-mail address -- reman_core_operations@cat.com. For assistance with technical questions, call the Peoria Reman Customer Satisfaction Hot Line also toll free at (888) 88-REMAN or use our e-mail address--Reman_Help@cat.com.