Overview
Use adjustment invoices to make changes to existing invoices that have already been exported. When an invoice has already been exported, you can't directly change or delete that invoice. Adjustment invoices help you make corrections to invoices to ensure accuracy and completeness in billing.
Who uses this feature
Administrators, office employees, managers, accountants, and bookkeepers
Applies to all business types
Applies to all trades
Common reasons for creating an adjustment invoice
Payment needs to be refunded
Payment needs to be voided
Payment was added to the invoice incorrectly
Payment was added to the wrong invoice
Invoice balance is incorrect
The original invoice balance or credit need to cleared on an as-needed basis
Write off bad debt
Things to know
Refunds should be processed individually on each invoice when a customer is billed through an adjustment invoice. You can't issue refunds in bulk on a single invoice or adjustment invoice.
You can only delete adjustment invoices when they're in a posted status.
You can create adjustment invoices only on posted or exported invoices.
The Total that appears on the original invoice will stay the same regardless of any adjustment invoices. The adjusted total will display when you go to the print view of the invoice.
By default, you cannot create an adjustment invoice if the job is in Pending status. You will need a configuration enabled to be able to do this.
Do not export the adjustment invoice before completing the original job.
When you export an adjustment invoice before job completion, you cannot complete the job later.
Choosing the right adjustment invoice workflow
Use the table below to identify which adjustment invoice workflow to follow based on your goal and the type of balance issue you're resolving.
Workflow | When to use | Key steps |
|---|---|---|
Fix an incorrect balance on an exported invoice. For example, wrong amounts, negative payment, or incorrect refund. | Adjustment invoice with an invoice item for the amount to correct. Use positive or negative quantities to increase or reduce balance. Save and verify balance. | |
Zero out the balance of an exported invoice. For example, bad debt or to reverse the invoice. | Adjustment invoice with original invoice items in negative quantities. Save and confirm balance is cleared. | |
Apply credit or collect payment on an exported invoice with a zero or negative balance. Correct overpayment entered incorrectly. | Adjustment invoice with a placeholder invoice item to create balance. Apply credit or collect payment to the invoice balance. Delete placeholder invoice item. |
Create an adjustment invoice
If you already exported the original invoice, create an adjustment invoice if changes are needed. If you have not exported the original invoice, you can unpost the invoice batch and make changes to the original invoice.
To create an adjustment invoice:
Search for and go to the invoice where the adjustment needs to occur.
Click Add an adjustment invoice.
At the popup, click OK. An adjustment invoice is created.
On the adjustment invoice, you can choose to add a service, payment, material, or equipment.
Note: Adjustment invoices are marked with a blue banner that links you to the original invoice.
If needed, use the Summary field on the Update Invoice Details screen to indicate why this adjustment invoice was created. To do this, click Update invoice details.
When finished, click Save.
Once the adjustment invoice is completed, accounting can add it to a batch and proceed with steps to export it.
Issuing a manual refund
If you are issuing a refund manually, the adjustment invoice will need to contain a negative Pricebook service AND a negative payment. For more, see Create a refund adjustment invoice and issue a refund or set up the Automated Refund feature.
QuickBooks and Intacct users
Adjustment invoices will be exported as an invoice if they have a net positive value. They will be exported as a credit memo if they have a net negative value.
Delete an adjustment invoice
Search for and go to the adjustment invoice.
On the adjustment invoice screen, click Delete
icon on all services, materials, equipment, and payments.Click OK to confirm removal of each item.
Make sure the adjustment invoice total is clear.
Click on the invoice number of the original invoice.
On the original invoice, scroll down to the Adjustment Invoices section.
Click the Delete
icon on the adjustment invoice you want to delete. 
Correct the invoice balance with an adjustment invoice
You can use an adjustment invoice to correct the invoice balance on an exported invoice. This workflow is useful if you find yourself in any of the following scenarios:
You need to fix the invoice balance due to a negative payment
You applied for a refund incorrectly and need to correct the invoice balance
Invoice items, including taxes and discounts, were added incorrectly and you need to fix the invoice balance
Before creating the adjustment invoice, calculate the amount that needs to be adjusted to correct the invoice balance. For example, the incorrect balance of the invoice is $500 and the correct balance is $300. This means you need to create an adjustment invoice to remove the additional $200 on the invoice balance to get the correct balance of $300.
To correct the balance on the invoice using an adjustment invoice:
Search for and go to the invoice for which you want to correct the balance.
Click Add an adjustment invoice.
On the adjustment invoice, add a service and set the amount of the service to the amount you want to add or remove from the invoice balance. For example, if you want to add or remove $200, enter "$200."
Change the quantity on the service depending on how you want to make the adjustment:
If you want to remove or subtract from the invoice balance, enter "-1."
If you want to add to the invoice balance, enter "1."
When finished, click Save.
Go back to the original invoice and check the balance.
If you need to make further changes to the invoice balance, go to the Adjustment Invoices section on the original invoice and click Edit.
Clear the invoice balance with an adjustment invoice
You can use an adjustment invoice to clear the invoice balance on an exported invoice. This workflow is useful if you find yourself in any of the following scenarios:
You plan to send a check for the credit balance outside of ServiceTitan.
You need to clear the invoice balance due to bad debt or lost check
To clear the invoice balance:
Search for and go to the invoice for which you want to clear the balance.
Click Add an adjustment invoice.
On the adjustment invoice, add the same service as the service on the original exported invoice.
Change the quantity on those services to a negative quantity. For example, if the original service had a quantity of 1, enter "-1."
Repeat steps 3-4 for each additional service from the original invoice.
When finished, click Save. The balance on the adjustment invoice should be the same balance as the original invoice but in the negative.
Go back to the original invoice and the balance should be clear.
Note: If the original invoice includes a payment and you want to completely clear the balance, enter a negative payment equal to the amount in the original invoice.
Apply credit or collect payment with an adjustment
You can use an adjustment invoice to add balance to an exported invoice if you have issues collecting payment or need to clear credit from the customer profile. Payments or credit can't be applied to an invoice if it has a negative or zero balance or if the positive balance was generated from a negative payment. This workflow is useful if you find yourself in any of the following scenarios:
You need to clear credit from a customer profile due to payment collected incorrectly, double charge, or payment collected on the wrong customer
You can't apply credit to the invoice because the invoice is not available in the Collect and Apply Payments screen
You can't collect payment on an invoice due to a negative payment from a refund
To use an adjustment invoice to collect payment or clear credit:
Search for and go to the invoice for which you want to add balance.
Click Add an adjustment invoice.
On the adjustment invoice, add a placeholder service and set it to the amount you want to add to the invoice balance. For example, if you want to add $200, enter "$200."
When finished, click Save. The invoice now carries a balance, allowing you to either collect payment or apply credit as needed.
Go to the customer profile and click More
> Collect Payment. Note: Alternatively, you can go to the original invoice and click Collect and apply payment to go to the Collect and Apply Payments screen.
On the Apply and Collect Payments screen that opens:
Select New Payment and enter the payment information if you're collecting payment.
Select Credits and select the credit you want to apply existing credit to the balance.
In the Apply to Invoice section, select the invoice to which you want to apply the payment or credit.
When finished, click Save.
Search for and go to the adjustment invoice you created in step 2.
In the adjustment invoice, click Delete
on the placeholder service you created in step 3.