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This episode discusses the new warranty sale feature in Dynamics 365 for Finance and Operations. Retail organizations can now sell warranty services during cash-and-carry or sales order transactions on their POS terminal. This feature is not available for call center sales orders and is separate from asset management warranty functionality. Warranty sales were introduced in two phases, with cash-and-carry sales first available in release 10.10 and sales orders added in release 10.11. To configure this feature, users need to create a warranty item and populate specific fields to set up a new warranty item.