Service Titan Knowledge Base

Add subcontractor costLast updated on 01/27/2023

You can add subcontractors as materials to purchase orders or invoices to track subcontractor costs on jobs.


Things to know

  • You can create a generic material for all subcontractors or be more specific and create tasks for each subcontractor.

  • When using option 2, non-chargeable materials have no accounting impact on ServiceTitan. As a result, the subcontractor material does not export to QuickBooks. You need to manually account for this material elsewhere.


Option 1 — Create a purchase order

Create a purchase order and add the subcontractor as material. Use this option if you have the Purchasing module.

Note: Using this option lets you email a purchase order directly to a vendor through ServiceTitan.

  1. Set up a purchase order type for the subcontractor. 

    • Automatically Receive:  Check this box if you want to automatically set the status of the purchase order to Received.

    • Display to Technician: Check this box if you want technicians to view purchase orders of this type on mobile.

  2. Add the subcontractor as a material to your pricebook

    • Categories: Enter a material category if you want technicians to add this material on mobile.

    • Cost of Sales Account: Select the expense account for subcontractor work.

    • General Ledger Account/Income Account: Select any income account. This field is required to add the material, but the account is not affected unless the material is added to the invoice as chargeable.

    • Project Label: Assign a project label if you want to track subcontractor costs at the project level. The label displays at your Budget vs Actuals table in the project dashboard.

  3. Create the purchase order and add the subcontractor material.

  4. At the Item List table, use the following fields:

    • Qty:  Enter the total number of hours logged for the subcontractor work.

    • Unit Cost: Enter the hourly rate for the subcontractor.


Option 2 — Add material on invoice

If you do not have the Purchasing module or do not want to create a purchase order, you can add a subcontractor as a non-chargeable material to an invoice.

  1. Add the subcontractor as a material to your pricebook.

    •  Categories: Enter a material category if you want technicians to add this material on mobile.

    • Cost of Sales Account: Select any expense account. This field is required to add the material, but the account is not affected. 

    • General Ledger/Income Account: Select any income account. This field is required to add the material, but the account is not affected.

    • Deduct as job cost: Select this box to deduct this material as job cost.

  2. Add the subcontractor material to the invoice.

    • Charge For Material?: Clear this box to ensure you do not charge the customer for this material.



Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.