What I mean by warranty work is where we are replacing something at no charge to the customer.
 
Currently we enter a SO to the customer, process as normal (from stock or make WO as required), then enter a CM in AR-B to pay for it, using our "Returns and Allowances" GL account.
 
This works, BUT it makes it look like the customer purchased more than they really did. We used to enter the SO to "us" (a customer set up with our name/address etc), but then we couldn't easily tell what and when we shipped to the customer.
 
We have a very large issue to handle now and I'm wondering if there's a better way.