Booking the expense for a Warranty item in Mfg. organization

Hi,

We need to enable Mfg. organizations to ship items in Inventory to a Distribution organization using sales orders and thereby generating AR invoices. 

We set up a separate Warranty order type to ship items required to fulfill a warranty. The COGS for this order type would book to an expense account but the Receivable and Revenue linked to the AR transaction type would both book to the same GL code combination so as to offset each other. Post to GL is unchecked for this AR transaction type. This way, we record  Warranty expense in the Mfg. organization but not recognize any revenue or receivable as neither are realized when warranty items are shipped.