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This episode discusses a new warranty sale feature in Dynamics 365 for retail organizations. It allows selling warranty service during cash-and-carry or sales order transactions on the POS terminal. The feature was released in two phases: first for cash-and-carry sales in 10.10, then for sales orders in 10.11. To configure the functionality, a warranty item must be created with specific fields populated. This feature is distinct from asset management for creating warranties for assets and is not available for call center sales orders.