File a Shipping Damage Claim

Documentation Index

Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt

Use this file to discover all available pages before exploring further.

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When to use this workflow

• Customer reports a damaged package upon delivery
• Carrier evidence (photo, inspection) confirms damage in transit
• You need to file a claim with the carrier for reimbursement
• You need to send a replacement or issue a refund

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Immediate steps when damage is reported

Timeline: File carrier claims within 24-48 hours of reported damage.

1. Ask customer to photograph the damaged item and packaging.
2. Request photos of the shipping box exterior (for evidence of impact/crushing).
3. Do NOT discard the item or packaging until the carrier inspects (if required).
4. Note the date and time damage was reported.
5. Gather the tracking number and shipping label details.

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File a damage claim with the carrier

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Step 1: Identify the carrier

Open the shipment in Arcus:

1. Click Orders and find the order.
2. Click Fulfillment > Shipment.
3. Note the Carrier (UPS, FedEx, USPS) and Tracking Number.

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Step 2: File the claim through Arcus (if integrated)

If Arcus integrates with your carrier (Shippo integration):

1. In the shipment details, click File Damage Claim or File Carrier Claim.
2. Answer the claim form:
   • Item value: Cost of the damaged item to you
   • Damage description: What happened (crushed box, broken glass, wet contents, etc.)
   • Cause: Impact during transit, weather, handler error, etc.
3. Attach customer photos and photos of packaging.
4. Submit the claim.

Expected result: Claim is filed with the carrier. You’ll receive a claim number and reference for follow-up.

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Step 3: File the claim directly with the carrier (if not integrated)

If Arcus doesn’t have integrated claims:

1. Visit the carrier’s website (UPS.com, FedEx.com, USPS.com).
2. Select File a Claim or Damage Claim.
3. Enter the tracking number.
4. Answer the damage assessment form.
5. Upload photos (item damage, box damage, packing material condition).
6. Submit.

Timeline for carrier response: 7-14 business days.

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Step 4: Document the claim in Arcus

1. Open the order.
2. Click Fulfillment > Shipment.
3. Add a note with:
   • Claim number from carrier
   • Date claim filed
   • Item value claimed
   • Expected claim outcome date

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Provide customer resolution

While the carrier claim is in process, decide on customer recovery:

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Option A: Send a replacement

1. Create a new order (or duplicate the original order).
2. Ship the replacement ASAP.
3. Mark as “Replacement for Damage Claim [claim#]”.
4. Tell customer: “We’re sending a replacement at no charge. Original claim is being processed with [carrier]; any reimbursement from them is yours to keep as a gesture of goodwill.”

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Option B: Issue a refund

1. Open the original order.
2. Click Issue Refund or Refund Items.
3. Select the damaged item(s).
4. Enter the refund amount (typically 100% of item cost).
5. Click Process Refund.
6. Inform customer: “We’ve issued a refund of $XX for the damaged item. Once the carrier pays our damage claim, that reimbursement is yours.”

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Option C: Send replacement + refund (high-value items)

For valuable items:

1. Send a replacement (see Option A).
2. Issue a small refund for the inconvenience (50% of item value or a fixed amount like $25).
3. Inform customer: “We’re sending a replacement and crediting your account $XX for the trouble.”

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GL impact

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When claim is filed

No GL entry. This is a contingent asset (potential recovery).

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When carrier approves the claim

A GL entry records the recovery:

• Debit: Cash/Accounts Receivable (amount recovered)
• Credit: Shipping Loss / Claim Recovery (income account)

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When you issue a refund to the customer

GL entry reverses the original sale:

• Debit: Returns/Refunds (sales contra account)
• Credit: Accounts Receivable (or Cash, if refunded immediately)

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Tracking the claim status

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Check claim status with the carrier

1. Visit the carrier’s website (UPS, FedEx, USPS).
2. Search by claim number.
3. View the status: Pending, Approved, Denied, Paid.

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Update Arcus with claim status

1. Open the order > Fulfillment > Shipment.
2. Click Update Claim Status.
3. Select the new status (Approved, Denied, Paid).
4. If paid, enter the amount reimbursed.
5. Save.

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Common outcomes

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Damage claim tips

• Act fast: Report damage within 24 hours of delivery. Late reports may be denied.
• Preserve evidence: Keep packaging, photos, and communication until claim is resolved.
• Document everything: Note the date, time, customer name, item value, and photos in Arcus.
• Follow carrier procedure: Each carrier (UPS, FedEx, USPS) has specific claim forms and deadlines.
• Know your limits: Carriers cap claims per package and per year. Check carrier’s terms.
• Reshipment urgency: Send a replacement quickly even if the claim is pending; customer satisfaction matters more than waiting for carrier reimbursement.

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