Service Titan Knowledge Base

Finance Fees/BuyDown: recommended workflowLast updated on 05/12/2023

The purpose of this article is to explain the proper buydown/financing fees workflow.


Things to know

  • Account configuration is required to use this workflow. To update your account, please contact Technical Support for details.

  • QBO Only

    • After export, the credits that were created need to be manually applied to the invoice.

      • Go into the invoice for the original customer and choose to add payment, the screen will pop up with the invoice checked and at the bottom will show “Credits” Check the Journal Entry, and “Save and Close”

      • Go into the invoice for financing customer and choose to add payment, the screen will pop up with invoice checked and at the bottom will show “Credits” Check the Journal Entry, and “Save and Close”


Workflows

Set up a financing/buydown workflow

You need to have the following general ledger accounts or create new General Ledger Accounts:

  1. Financing Fees (Expense Account)

    1. 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 an invoice and add a payment for the full amount financed.

    1. Payment Type: GreenSky Financing (or other company) Note: 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 the Bill To field 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: the 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 example shown in the image below)

      2. Payment Type: However the finance company paid you

      3. Apply to the appropriate invoice

      4. 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, the 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.


Track the financing fee as a job cost

Setup
  • Go to 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 2. For more information, see Set up a financing/buydown workflow.

    • 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


Related Content


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


Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.