---
title: "Create a service agreement step 6: Billing schedule and payment terms"
slug: "create-a-service-agreement-step-6-billing-schedule-payment"
updated: 2026-04-25T01:39:18Z
published: 2026-04-25T01:39:18Z
---

> ## 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 a service agreement step 6: Billing schedule and payment terms

## Overview

In Step 6: Billing Schedule and Payment Terms you can set the billing and payment details of a service agreement.

---

### 

****Who uses this feature****

- Administrators, accountants, estimators, project managers, and operations managers.
- Primarily benefits Commercial Service and Replacement business types, and Residential Service and Replacement business types
- Applies to all trades

## Things to know

- To ensure accurate billing and generate invoices, the **Recurring Billing module** must be used for Service Agreements with the following billing schedules: **Upfront, Annual, Biannual, Quarterly, Every Other Month,**and **Monthly**.

## Add billing schedule

1. In *Step 6: Billing Schedule and Payment Terms*, go to the *Billing Schedule* section and select a type of billing schedule. You can select one of the following billing schedules:
  1. **Time of Service:** An invoice is generated at the time of each visit
  2. **Upfront:** One invoice for the total agreement price
  3. **Annual:** One invoice per year
  4. **Biannual:** Two invoices per year
  5. **Quarterly:** Four invoices per year
  6. **Every Other Month:** Six invoices per year
  7. **Monthly:** 12 invoices per year

> [!NOTE]
> **Note:** The Biannual, Quarterly, and Every Other Month billing schedules are only available for agreements with durations that can be divided evenly. For example, an agreement with a 13-month duration cannot use the Quarterly billing schedule.
2. When finished, click **Save and Continue**. ![billing schedule selection including annual, monthly, and quarterly choices.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-a-service-agreement-step-6-billing-schedule-and-payment-terms-image-qtrrxg6i.png)

## Add payment terms and payment methods

1. In the *Payment Terms* section that opens, select a payment term from the dropdown list. The default payment terms are *Due Upon Receipt*.

> [!NOTE]
> **Note:** If the payment term you want to use is unavailable in the list, click **Create Payment Terms** to create a new one. This takes you to the Payment Terms screen. For more, see [Create payment terms](/v1/docs/create-payment-terms) and [Use, view, edit, and deactivate payment terms](/v1/docs/use-view-edit-and-deactivate-payment-terms).
2. When finished, click **Save and Continue**. ![Payment terms](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-a-service-agreement-step-6-billing-schedule-and-payment-terms-image-ih0z2wlq.png)
3. In the *Payment Method* section that opens, select a payment method from the dropdown list. The default payment method is *Cash / Check*. If the payment method you want to use is unavailable in the list, click **Create Payment Method** to create a new one. This takes you to the Customer record, go to the Payment Method section and click **Add Payment Method.** For more, see [Manage stored customer payment methods](/v1/docs/manage-stored-customer-payment-methods).

> [!NOTE]
> **Note:** The **Payment Method** dropdown shows the Credit Cards / Payment Methods from the payment method options saved on the customer profile, and that if no payment method is stored on the customer profile then the only option available will be *Cash/Check*.

## Add billing address

1. In the *Billing Address* section that opens, select the location that is used as the Service Location on the billing invoices.
2. When finished, click **Save and Continue**. ![Billing address for SAs](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-a-service-agreement-step-6-billing-schedule-and-payment-terms-image-a4n93z7d.png)

> [!NOTE]
> **Note:** To edit Step 6: Billing Schedule and Payment Terms information, click **Edit** and make the updates.
3. When finished, click **Continue to Next Step** to go to *Step 7: Preview and Send*.

## Want to learn more?

- Visit ServiceTitan Academy and enroll in [Creating & Managing Service Agreements](https://servicetitan.docebosaas.com/learn/courses/242/creating-managing-service-agreements)
- See [Create a service agreement step 5: Pricing](/v1/docs/create-a-service-agreement-step-5-pricing)
- See [Create payment terms](/v1/docs/create-payment-terms)
- See [Use, view, edit, and deactivate payment terms](/v1/docs/use-view-edit-and-deactivate-payment-terms)