Quick Setup Guide: Membership with recurring billing, revenue is deferredLast updated on 03/22/2022

New Sale Task

You’ll put this item on the invoice when you sell a membership.

Details tab

• Code

• Name

• Item

• Description

• Price (total cost of the membership - collected when the membership sells)

• General ledger account (QB liability account)

• Enter taxable status and other settings as desired.

• Deferred revenue: Check this checkbox for a new sales task.

Commission tab

• Enter any bonus amounts or commission you wish to pay out when the membership sells .

• There is no need to enter sold hours on a new sale task.

Materials tab

• N/A - Materials are usually not attached to a new membership sale.

Workflow tab

• This will be automatically populated with the membership name.

Memberships Wizard

You can create new sale tasks in the Memberships Wizard (Step Two: Billing > New Sale Tasks > Create New Task).

Or, you can use the Memberships Wizard to select an existing task from your Pricebook (Step Two: Billing > New Sale Tasks > Existing Tasks).

Renewal Task

Renewal(s) tasks are used when you generate renewal estimates.

You can also add renewal tasks to any existing invoice, if the customer indicates they want to renew.

Details tab

• Code

• Name

• Item

• Description

• Price (total cost of the membership renewal - collected when the membership sells)

• General Ledger Account (QB liability account)

• Enter taxable status and other settings as desired.

• Deferred revenue: Check this checkbox for a renewal sales task.

Commission tab

• Enter any bonus amounts or commission you wish to pay out when the renewal sells.

• There is no need to enter sold hours on the renewal task.

Materials tab

• N/A - Materials are usually not attached to a membership renewal.

Workflow tab

• The number of months is the duration of the renewal (number of months before the renewal membership will expire).

Memberships Wizard

You can create renewal tasks in the Memberships Wizard (Step Two: Billing > Renewal Tasks > Create New Task).

Or, you can use the Memberships Wizard to select an existing task from your Pricebook (Step Two: Billing > New Sale Tasks > Existing Tasks).

Billing Task

You’ll put this item on the membership billing template. This the amount the member will be billed/charged every time you process membership billing.

Details tab

• Code

• Name

• Item

• Description

• Price - The Price you enter here will be charged to the customer every time you process membership billing.

• Categories

• Conversion tags (if applicable)

• Enter the taxable status

• Exclude from Pricebook Wizard - It is recommended that you enable this setting (in most cases, membership dues are not based on sold hours).

• General ledger account (QB liability account)

• Deferred revenue: Check this checkbox for a new billing task.

Commission tab

• N/A. If you want to pay out a commission or spiffs on the membership sale, do this on the new sale task.

Materials tab

• N/A. Materials are usually not attached to a new membership sale.

Workflow tab

• There is no need to enter any membership settings here (the revenue recognition tasks are not used to trigger a new membership or renewal).

Memberships Wizard

You can create a billing task in the Memberships Wizard (Step Two: Billing > Select billing frequency > Create > Click to add a service).

Or, you can use the Memberships Wizard to attach an existing billing template (Step Two: Billing > Select a billing frequency > Select billing template from the dropdown). The billing task should already be on the billing template. If you want to check this, go to Settings > Invoice Templates.

Deferred Revenue (+/-) Tasks

These tasks are placed on recurring service invoice templates, so revenue can be realized when the service is performed.

The positive (+) task is the amount of revenue being realized when the service is performed.

The negative (-) task reconciles this revenue in your liability account.

Details tab

• Code

• Name

• Item

• Description

• Price

• Positive (+) task: Amount of revenue being realized when the service is performed.

• Negative (-) task: Enter a negative dollar amount (to reconcile deferred revenue).

• Exclude from Pricebook Wizard - This option should be checked for all deferred revenue tasks, to avoid interference with your deferred revenue setup. Remember: You can configure your account, so ServiceTitan will automatically adjust the amount of deferred revenue tasks, even when add-ons are sold.

• General Ledger Account for the Positive (+) task: The general ledger account should be the QB income account for realized membership revenue.

• General Ledger Account for the Negative (-) task: The general ledger account should be the QB liability account for deferred membership revenue.

• Category

• Deferred revenue - Check this checkbox for the negative (-) task only. Do not check the posotive task.

• Select Taxable status and other settings as desired.

Commission tab

• N/A

Materials tab

• N/A

Workflow tab

• There is no need to enter any membership settings here (the revenue recognition tasks are not used to trigger a new membership or renewal).

Memberships Wizard

You can create deferred revenue tasks in the Memberships Wizard (Step Three: Recurrences > Add Recurring Service > Create New Service > Invoice Template > Create > Click to add services).

Or, you use the Memberships Wizard to attach an existing recurring service (Step Three: Recurrences > Add Recurring Services > Add Existing Service). The deferred revenue tasks should already be on the recurring service invoice template.

Recurring Service Type

There needs to be a separate recurring service type for every service included with the membership.

The recurring service type will determine the frequency of the membership service.

You can also enter job details, to make it easier and faster for CSRs to book jobs.

Tags

• Recommended: Enter a tag for the recurring service. This tag will be applied to all jobs when the service is booked.

Invoice template

• Select the recurring service invoice template.

• This is the invoice template used when the service is booked.

Job details: Business Unit, Job Type, Priority, Campaign, Job Summary

• These job settings will be automatically set every time the membership service is scheduled.

• CSRs won't need to manually enter these job details, which will reduce human error and increasing office efficiency.

Recurrence type

• How often is the service repeated?

• You can select weekly, monthly, yearly etc.

Interval

• How much time between each service?

• For example: To schedule a service every 6 months, you would enter a Recurrence type of “Monthly” with an Interval of 6.

Duration

• When will the service end?

• If you select continuous, the service will continue until the membership ends/expires.

• You can also put a limit on the number of visits (recurring service appointments) that will be booked.

Memberships Wizard

You create recurring service types in the Memberships Wizard (Step Three: Recurrences > Add Recurring Services > Create New Service).

Or, you can use the Memberships Wizard to attach an existing recurring service (Step Three: Recurrences > Add Recurring Services > Add Existing Service).

Recurring Service Type > Invoice Template

The recurring service invoice template will be attached to the recurring service type (see above). This invoice template is used every time a recurring service is booked for the membership.

You will need to add the Deferred Revenue (+/-) tasks to the Recurring Service Invoice Template.

You can either use the $1 tasks (+/-) if you are using the auto-calculation enhancements. If not, you will need to add the corresponding dollar (+/-) amount to each Recurring Service Invoice Template.

Why do I need add +/- tasks to the Invoice Template?

• Adding +/- tasks will realize your revenue when the service is complete. The - will deplete the liability GL account, and the + will increase the income GL account.

Memberships Wizard

You can create a new recurring service invoice template in the Memberships Wizard (Step Three: Recurrences > Add Recurring Services > Create New Service > Invoice Template > Create).

Or, you can use the Memberships Wizard to attach an existing recurring service (Step Three: Recurrences > Add Recurring Services > Add Existing Service). The invoice template should already be attached to the service. If you want to check this, go to Settings > Invoice Templates.

Memberships Wizard > Billing > Billing Template

The membership billing template (billing invoice) will be used every time you process membership billing.

The membership billing template should include:

Membership billing task. This is the amount the member is charged/billed every time you process membership billing.

Memberships Wizard

You can create a billing template in the Memberships Wizard (Step Two: Billing > Billing Template > Select billing frequency > Create).

Or, you can use the Memberships Wizard to attach an existing billing template (Step Two: Billing > Select billing frequency > Select billing template from the dropdown).

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Membership Add-Ons

You can customize membership plans with add-on services and add-on charges.

When you sell the add-on, the add-on price will be rolled into the membership (the customer won't see a breakdown).

If the add-on is for an extra recurring services or recurring service upgrade, these services will automatically appear on the membership.

You will set up a Pricebook task for each membership add-on.

When you do the add-on setup, you can choose from the following options:

• Add billing charges to the membership

• Add up front charges to the membership

• Add a new recurring service to the membership

• Upgrade an existing recurring service

Click here for more information on setting up membership add-ons.

Pricebook

You will create membership add-ons in the Pricebook (Settings > Pricebook).

Click here for more information on setting up add-ons.