--- title: "Create pricebook service items for deferred revenue" slug: "create-pricebook-service-items-for-deferred-revenue" updated: 2026-10-15T01:15:13Z published: 2026-10-15T01:15:13Z canonical: "help.servicetitan.com/create-pricebook-service-items-for-deferred-revenue" --- > ## Documentation Index > Fetch the complete documentation index at: https://help.servicetitan.com/llms.txt > Use this file to discover all available pages before exploring further. # Create pricebook service items for deferred revenue ## Overview If you use Deferred revenue with your memberships, create pricebook service items to add to recurring service event Invoice templates. One item debits deferred revenue from a liability general ledger (GL) account, the other credits the revenue in an income GL account. --- ### #### Who uses this feature - Accountants, bookkeepers, and administrators - Account configuration is required. Please contact [Technical Support](https://go.servicetitan.com/#/ask) for details. ## Things to know - Before you start, make sure your GL includes deferred revenue liability and income accounts. For more information, see [Set up your General Ledger accounts](/construction/docs/set-up-general-ledger-accounts). - You must have [Pricebook permissions](/construction/docs/set-pricebook-permissions) enabled to edit pricebook items. ## Create deferred revenue pricebook items To account for deferred revenue, create two pricebook service items: - A positive-dollar service item to recognize revenue in your income GL account - A negative-dollar service item to deduct an equal amount from your liability GL account Add both items to the recurring service invoice template so that: - The correct amount of deferred revenue is recognized - The invoice equals $0.00, since the recurring service is included with the membership For more on invoice templates, see [Configure invoice templates for deferred revenue](/v1/docs/configure-invoice-templates-for-deferred-revenue). ## Create a positive-dollar service item 1. Go to the navigation bar and click **Pricebook** ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/icon-gnav-pricebook-inactive.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A47%3A07Z&se=2026-10-31T02%3A47%3A07Z&sr=c&sp=r&sig=V5tIMSudO%2Bpt%2FaMUNHXFAe2BFrZZJqG8JaZA9n4EQx0%3D) . 2. In the side menu, click **Services**. 3. Click **Add Service**. The *Add a Service* screen opens. 4. Enter details in the **Code**, **Name**, and **Item Description** fields to indicate that the item is used for recognizing deferred revenue. For example, name the item *Recurring Service Event - Recognized Revenue*. > [!NOTE] > **Note:** The item name and description shows on the customer invoice. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-pricebook-service-items-for-deferred-revenue-image-bu9saxev.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A47%3A07Z&se=2026-10-31T02%3A47%3A07Z&sr=c&sp=r&sig=V5tIMSudO%2Bpt%2FaMUNHXFAe2BFrZZJqG8JaZA9n4EQx0%3D) 5. Select **Taxable** if the item is taxable. 6. In the **Price** field, enter a positive-value dollar amount for the amount of deferred revenue you want to recognize for each recurring service event. > [!TIP] > **Tip:** If you use the Memberships Wizard to automatically calculate deferred revenue, enter **1.00**. The amount adjusts based on your Membership type settings. 7. In the **General Ledger Account** field, enter the name of the income GL account where you want the revenue recognized. 8. Click the **Categories** dropdown and select the membership category or subcategory where you want to access the item. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-pricebook-service-items-for-deferred-revenue-image-glncgx19.gif?sv=2026-02-06&spr=https&st=2026-10-31T01%3A47%3A07Z&se=2026-10-31T02%3A47%3A07Z&sr=c&sp=r&sig=V5tIMSudO%2Bpt%2FaMUNHXFAe2BFrZZJqG8JaZA9n4EQx0%3D) 9. When you’re done, click **Save**. ## Create a negative-dollar service item 1. Go to the navigation bar and click **Pricebook** ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/icon-gnav-pricebook-inactive.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A47%3A07Z&se=2026-10-31T02%3A47%3A07Z&sr=c&sp=r&sig=V5tIMSudO%2Bpt%2FaMUNHXFAe2BFrZZJqG8JaZA9n4EQx0%3D) . 2. In the side menu, click **Services**. 3. Click **Add Service**. The *Add a Service* screen opens. 4. Enter details in the **Code**, **Name**, and **Item Description** fields that indicate that the item is used for deferring revenue. For example, name the item *Recurring Service Event - Deferred Revenue*. > [!NOTE] > **Note:** The item name and description shows on the customer invoice. 5. **Select Taxable** if the item is taxable. 6. In the **Price** field, enter a negative value equal to the positive-dollar item. > [!TIP] > **Tip:** If you use the Memberships Wizard to automatically calculate deferred revenue, enter **-1.00**. The amount adjusts based on your membership type settings. 7. In the **General Ledger Account** field, enter the name of the *liability (subtype: membership liability)* *GL account* from where you want to deduct the deferred revenue. 8. Click the **Categories** dropdown and select the membership category or subcategory where you want to access the item. 9. When you’re done, click **Save**. ## Want to learn more? - See [Add services to your pricebook](/construction/docs/add-services-to-your-pricebook) Deferred revenue is used in accrual accounting to manage advanced payment for upcoming services. After accepting payment, you only recognize it as income upon delivery of services, when the revenue is earned. Memberships use deferred revenue to account for recurring services included with a membership. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) **a.k.a.** deferred income Invoice templates are used to generate invoices for recurring services and billing invoices. They include the pricebook items for services performed during a recurring service job or for periodic billing of ongoing memberships. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) The template used to set up a membership for a customer. It includes recurring service types, tags, pricing, accounting details, and duration and billing details. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)