Warranties (Manufacturer): recommended workflowLast updated on 10/04/2022
A manufacturer warranty is used when you sell a warranty backed by the manufacturer.
Things to know
Create General Ledger Accounts Needed in QuickBooks and ServiceTitan
Set up General Ledger accounts with the following names and types:
Warranty Receivable (Other Current Asset)
Warranty Income if desired (This depends on where the Warranty Income should be recognized. You might want to record it in Job Income, etc.)
If applicable: Be sure to map these new accounts in Settings> Quickbooks Desktop> Chart of Accounts Mapped
Configure ServiceTitan With QuickBooks walks you through the steps
Create Warranty Pricebook Services
Create the following pricebook services. For more information see Add services to your pricebook.
“Warranty Holding - Manufacturer” Service task and map it to Warranty Receivable
“Warranty Recognized” task and map it to Job Income or Warranty Income
Sell the warranty
Step 1: A normal invoice is created at the time of initial sale that does NOT include a warranty item.
Book the warranty and build the invoice
Step 2: From the call booking screen search for the customer that needs the warranty job performed. Follow the steps outlined in Book a recall or warranty job.
Step 3: On the invoice for this job use these tasks:
“Warranty Recognized” for a POSITIVE amount (This will credit/Increase your revenue/income account)
“Warranty Holding” for a NEGATIVE amount (This will debit your Warranty Receivable account)
These tasks should both have the same value, leaving the customer total at $0
Overall, this process is very similar to tracking deferred revenue for memberships.
Step 4: Create an adjustment invoice to be sent to the manufacturer.
On this adjustment invoice:
Change the Bill-To Customer to the Manufacturer.
To do this, click on "Update Invoice Details" and change the bill-to customer to the manufacturer while leaving the service location unchanged.
Step 5: Once payment from the Manufacturer is received, record it like normal.
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.