Service Titan Knowledge Base

Financing/Buy-down: recommended workflowLast updated on 12/23/2021

When financing is offered to a customer, please follow this workflow for best results.


Things to know

  • There is account configuration required for this workflow. Please reach out to your CSM.

  • You can make a copy of this spreadsheet to do an audit of your Financing Workflow


Workflows

Setup

  1. You need to have the following General Ledger Accounts or create new General Ledger Accounts:

    1. Financing Fees (Expense Account) NOTE: There can be one GL per Financing Company (e.g. Greensky Financing Fees, Other Company Financing Fees, etc) or just one general Financing Fees account.

    2. Clearing Account (Other Current Liability Account)

  2. You must have the following Payment Types

    1. Name: Finance Fee

      1. Export as: Journal Entry

      2. Attributes: None

      3. Map to: the new Finance Fee expense account you just created

      4. More than one Payment type can be created if you made multiple finance fee expense accounts

    2. Name: Greensky Financing (or the name of your financing company)

      1. This is a customer facing payment so be mindful of the name

      2. Export as: Journal Entry

      3. Attributes: None

      4. Map to: Clearing Account

      5. More than one Payment Type can be created if you work with multiple financing companies

    3. To create a new Payment Type, go to Settings > Payment and Invoice Types > Click Add

  3. You must have the following Service in your Pricebook

    1. Name: Financing Task

      1. General Ledger Account: Clearing Account (one of the accounts created in step 1)

    2. To add a new service to your Pricebook, click Pricebook > Services > + Add Service

  4. Create a new customer for each financing company

Workflow:

  1. Create and invoice like normal and add a payment for the full amount financed.

    1. Payment Type: Greensky Financing (or other company)

      1. This is the Payment Type that is mapped to the liability account

    2. Amount: full amount financed

  2. Create an Adjustment Invoice by clicking “Add an Adjustment Invoice”

    1. Click “Update Invoice Details” 

      1. Change “Bill To” to the financing company

        1. This makes the whole adjustment invoice hidden from the original customer

      2. Click Save

    2. Click “Add a Task” 

      1. Task Name: “Financing Task” (You created this task in the setup section)

      2. Unit Price: Amount that was financed (this needs to be the same amount you did in step 1)

    3. The invoice can be exported before payment from the financing company is received

  3. When payment is received from the financing company.

    1. Go to the financing company customer page and click “Collect/Apply Payment”

      1. Amount: Amount received from the financing company (this will be less than the amount financed. $4,900 in the below example)

        1. Payment Type: However the finance company paid you

        2. Apply to the appropriate invoice

        3. Click Save

    2. Receive a second payment

      1. If necessary, click “Collect/Apply Payment” again if you were taken back to the customer page

      2. Payment Type: Financing Fee

      3. Amount: Remaining amount ($588 in the below example)

  4. When batching these transactions:

    1. If you reconcile your Bank Statement by batch, Financing Fee and Greensky Financing Payment types should NOT be batched and exported with other payments. They will make your batches not match your bank.

    2. These payment types can be batched individually or with each other, but not other payment types.

Optional - To track the financing fee as a job cost

Setup
  • Click Pricebook > Materials > + Add Material

    • Name: Greensky Financing Fee (or Financing Fee, or the name of another financing company)

    • General Ledger Account: Financing Fee expense account created in step 1

    • This is a non-inventory, non-chargeable material

Workflow
  • Create an additional Adjustment Invoice 

    • Add a Material:

      • Greensky Financing Fee (created above)

      • Cost: Financing fee amount

      • No price

    • This allows you to see the cost associated with the fee on your job costing report


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