Configure invoice templates for deferred revenueLast updated on 09/07/2022

• Before you start, make sure to create Pricebook service items for deferred revenue.

• Recurring service types use invoice templates to generate zero-dollar invoices for recurring service events included with a membership.

• If you set up a membership type with automatic deferred revenue calculations, invoices are calculated using the membership type settings, not the invoice template settings.

• Invoice templates cannot include chargeable material or equipment items.

Each complete recurring service event job generates a zero dollar invoice. To recognize deferred revenue, add the positive-dollar and negative-dollar service items from your pricebook to the invoice template:

1. Go to the navigation bar and click Settings .

2. From the side panel, click Invoicing > Invoice Templates. A table of invoice templates displays.

3. Click Edit for the invoice template you want to configure, or click Add to create a new one.

4. In the Services section, click Add Service. 

5. In the Search field, enter a few letters of the positive-dollar Pricebook item name or code. Select the item from the dropdown.

6. To change the amount of revenue recognized for each completed recurring service event, in the Unit Price field, enter the amount of revenue you want to recognize. This does not change the unit price of the item in your pricebook. Tip: If you automatically calculate deferred revenue in the Memberships Wizard, enter $1.00. The amount adjusts based on how you configure the membership settings.

7. In the Services section of the invoice template, click Add Service and follow the previous steps to add the negative-dollar service item.

8. Make sure the Unit Price is a negative amount equal to the positive-dollar service item. This amount is debited from the GL liability account. Tip: If you automatically calculate deferred revenue in the Memberships Wizard, enter -$1.00. The amount adjusts based on how you configure the membership settings.

9. To add materials:

   1. In the Materials section, click Add Material.

   2. In the Search field, enter a few letters of the Pricebook material item name or code. Select the item from the dropdown.

      Note: You can adjust the quantity of the material item, but the price must be $0.00. You cannot add chargeable material items to an invoice template.

10. When you’re done adding services and materials, click Save Changes.

    When you create or edit a recurring service type, this template appears as an option in the Invoice Template dropdown.

• Visit ServiceTitan Academy to enroll in Validate and Sell Deferred Revenue Memberships

• See Create and edit invoice templates