---
title: "Warranties (In-House): recommended workflow"
slug: "warranties-in-house-recommended-workflow"
updated: 2026-10-15T01:17:14Z
published: 2026-10-15T01:17:14Z
canonical: "help.servicetitan.com/warranties-in-house-recommended-workflow"
---

> ## 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.

# Warranties (In-House): recommended workflow

## Things to know

- Before using this workflow, set up [Set recall, warranty, and lead job booking guides](/construction/docs/set-recall-warranty-and-lead-job-booking-guides) and use the [Book a recall or warranty job](/v1/docs/book-a-recall-or-warranty-job) workflow
- Use this workflow if you sell the warranty for more than $0
- First, [Create General Ledger Accounts](/construction/docs/warranties-in-house-recommended-workflow#create-general-ledger-accounts-needed-in-quickbooks-and-servicetitan) Needed in QuickBooks and ServiceTitan, then [Create Warranty Pricebook Services](/construction/docs/warranties-in-house-recommended-workflow#create-warranty-pricebook-services), and the setup.

## Workflows

### Create General Ledger Accounts Needed in QuickBooks and ServiceTitan

[Set up General Ledger accounts ServiceTitan](/construction/docs/set-up-general-ledger-accounts) and [create new accounts in QuickBooks](/construction/docs/create-or-edit-general-ledger-account-quickbooks-desktop) with the following names and types:

1. Warranty Liability (Other Current Liability)
2. Warranty Income (This depends on where Warranty Income should be recognized. You may want to record it in Job Income, etc.)
3. If applicable: Be sure to map these new accounts in Settings> Quickbooks Desktop> Chart of Accounts Mapped.
  1. [Configure ServiceTitan With QuickBooks](/construction/docs/web-connector-setup-step-1-download-and-install-servicetitan-web-connector) walks you through the steps

### Create Warranty Pricebook Services

Create the following pricebook items. For more information see [Add services to your pricebook](/construction/docs/add-services-to-your-pricebook).

1. "Warranty Sold" Service task and map it to the Warranty Liability General Ledger Account. For more information see [Map pricebook items to a QuickBooks general ledger account](/construction/docs/qbd-onboarding-step-3-map-pricebook-items-to-a-quickbooks-general-ledger-account).
2. "Warranty Performed" Service task and map it to Warranty Liability
3. "Warranty Recognized" Service task and map it to Job Income or Warranty Income

### Sell the warranty

Add your 'Warranty Sold' task to the invoice for services performed. This will credit (increase) your Warranty Liability account when exported.

#### Book the warranty and build the invoice

1. From the call booking screen search for the customer that needs the warranty job performed. Follow the steps outlined in [Book a recall or warranty job](/v1/docs/book-a-recall-or-warranty-job).![Job listing for a warranty position in Los Angeles with service details.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/warranties-in-house-recommended-workflow-image-km0lnu0x.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A49%3A16Z&se=2026-10-31T02%3A49%3A16Z&sr=c&sp=r&sig=3Pdf7r1I9AuLvhGQSfCNy%2BLptbBVub54AxTd853PRn0%3D)
2. On the invoice for this job use these tasks:
  1. "Warranty Performed" for a NEGATIVE amount (This will debit your Warranty Liability)
  2. "Warranty Recognized" for a POSITIVE amount (This will credit your revenue/income account)
  3. These tasks should both have the same value, leaving the customer total at $0
  4. Overall, this process is very similar to tracking Deferred revenue for memberships. ![Invoice details showing warranty tasks and billing information for Stacy McAdams.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/warranties-in-house-recommended-workflow-image-1we7di2y.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A49%3A16Z&se=2026-10-31T02%3A49%3A16Z&sr=c&sp=r&sig=3Pdf7r1I9AuLvhGQSfCNy%2BLptbBVub54AxTd853PRn0%3D)

Create an adjustment invoice to be sent to the manufacturer.

On this adjustment invoice:

- Add the task "Warranty Holding" for a POSITIVE amount (This will credit/decrease your Warranty Receivable account, clearing it out from the previous invoice)
- Change the Bill-To Customer to the Manufacturer.
- To do this, click on "Update Invoice Details" and change the bill-to customer to the manufacturer while leaving the service location unchanged.

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