CUP-BEARING 3L9409 - Caterpillar

Information Release Memo REM02-38
Reman
October 2002 CORE ATTRITION POLICY FOR REMAN PARTS
RETURNED AS SURPLUS ON A PARTS RETURN
AUTHORIZATION (PRA) FOR ALL MARKETING
ORGANIZATIONS
When processing surplus returns (PRA) provisions have been made in the Core Management
Information System (CMIS 2) to validate entitlements and to check for Caterpillar Attritions.
For dealers converted to the Core Management Information System (CMIS 2), at the time the
final PRA credit is issued to the dealer, entitlements are checked to determine if there are
active entitlements. If the dealer has no active entitlements, no core credit is allowed. If the
dealer has no active entitlements, but has had an entitlement attritioned by Caterpillar, the
entitlement is automatically reinstated so that core credit can be issued. This policy excludes
Major Components.
For example, if a dealer has no active entitlements on the final PRA credit issuance date
(June 1, 2002) and there have been no Caterpillar attritions for a similar part, the dealer is not
entitled to receive a core credit. If the dealer has no active entitlements on the final PRA
credit issuance date (June 1, 2002) but has had an entitlement attritioned by Caterpillar (on
October 1, 2001) within the 24 month period prior to the final PRA credit issuance date (the
process would look back as far as June 1, 2000 to find a core entitlement that was
attritioned), the entitlement is automatically reinstated and the appropriate core credit is
issued. In summary, these are special surplus return processing rules that considers the FIFO
Core Attrition Policy period plus 24 months prior to the final PRA credit issuance date for
Reman surplus part returns. Please refer below to your Marketing Organization processing
rule. If there have been no Caterpillar Attrition's or no entitlements, the dealer will not
receive core credit. All Reman surplus part returns must meet the normal resalable surplus
return guidelines to receive both the product price and core deposit. If the surplus return
falls outside of the 24-month rule, then the dealer will have to notify Caterpillar for
reinstatement. Caterpillar
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Dealers can also request for an extension to handle unique
situations to avoid the entitlement from canceling.
These special processing rules will
apply to all dealers that have been converted to CMIS 2 and apply to all Reman parts
excluding Major Components.
NACD
The processing rules for NACD are based on a 15-month (455 days) Core Attrition Policy.
This means that the maximum amount of time that would be considered is a 39-month time
frame for automatic entitlement reinstatement for surplus returns.
LACD
The processing rules for LACD are based on a transition 18-month (548 days) policy from
June 30, 2002 through December 31, 2002 and a 15-month policy effective January 1, 2003.
This means that the maximum amount of time that would be considered is a 42-month time
frame for the rest of 2002 and a 39-month time frame effective January 1, 2003 for automatic
entitlement reinstatement for surplus returns.
APD
The processing rules for APD are based on an 18-month (548 days) Core Attrition Policy for
Asia Pacific