--- title: "Attribute deferred revenue to a membership recurring service add-on" slug: "attribute-deferred-revenue-to-a-membership-recurring-service-add-on" tags: ["Area - Memberships", "Focus - Service Replacement", "Role - Accountant", "Role - Admin", "Type - Residential"] updated: 2026-10-16T01:14:03Z published: 2026-10-16T01:14:03Z canonical: "help.servicetitan.com/attribute-deferred-revenue-to-a-membership-recurring-service-add-on" --- > ## Documentation Index > Fetch the complete documentation index at: https://help.servicetitan.com/llms.txt > Use this file to discover all available pages before exploring further. # Attribute deferred revenue to a membership recurring service add-on ## ## Overview Attribute Deferred revenue to add-on items when you want to Split deferred revenue unevenly between Recurring services. This is helpful for businesses with multi-trade memberships—for example, memberships for HVAC and plumbing services where the HVAC visit would have a higher value than the plumbing visit. Adding positive and negative revenue items to recurring service Invoice templates, which allocates revenue from membership add-ons to a recurring service instead of dividing it evenly, benefits accountants by eliminating oversight from customer service representatives (CSRs) and dispatchers. It also eliminates the need to create many Pricebook items to accommodate calculating deferred revenue for multiple recurring services. --- ### ****Who uses this feature**** - Administrators and accountants - Primarily benefits Residential Service and Replacement business types - Applies to all trades ****Who uses this feature**** - Account configuration is required to use this feature. Please contact [Technical Support](https://go.servicetitan.com/#/ask) for details. ## Things to know - Deferred revenue is a type of income used in accrual accounting. When selling a good or service, the revenue that a business receives from a sale is considered unearned until the promised services are delivered. In ServiceTitan, those services are recurring services that accompany a membership. - It refers to advance payments received for service that will be delivered or performed in the future. It is also known as unearned revenue. - Deferred revenue is considered a liability because it is revenue that has not yet been earned. It represents products or services owed to a customer. - It is labeled *Earned* on the income statement after the products or services have been delivered. ## Setup deferred revenue in the Membership setup guided workflow A membership is required for this workflow. For more information on the membership setup guided workflow, see [Set up deferred revenue](/residential-s-r/docs/set-up-deferred-revenue). In the Revenue Recognition section of the third step of the membership setup guided workflow, choose the following options: - **Is the membership revenue recognized at the point of sale or deferred?** - Deferred - **Do you want ServiceTitan to calculate deferred revenue for you automatically?** - Yes, calculate automatically - **Do you want to divide the revenue evenly between each recurring service?** - Yes or no - **How do you want to recognize deferred revenue when you dismiss a recurring service event?** - Always recognize revenue when dismissing a recurring service event. - **If a cancelled membership has a deferred balance remaining, how do you want to resolve the difference with customers?** - Option to create a charge/refund invoice. ## Create a pricebook item to be calculated using deferred revenue Add a Pricebook item to attribute to deferred revenue as an add-on. The total price will be broken up based on the quantity you select in the *Edit Service* window and the number of times the recurring service occurs. 1. Go to the navigation bar and click **Pricebook**. 2. Click **Services**. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-bb3arocv.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D) 3. Click **Add Service**. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-0g7xs37s.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D) 4. Enter the details for *Code*, *Name*, and *Item Description*. > [!NOTE] > **Note:** Code, Name and Item Description are the only fields that need to be filled in to save. 5. In the **Categories** field, select a category. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-meylylxb.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D) 6. In the **General Ledger Account** field, add a liability account. 7. Select the **Deferred Revenue** checkbox. > [!NOTE] > **Note:** Account configuration is required to use this feature. To update your account, please contact Technical Support. 8. After you have selected **Deferred Revenue** click **Workflow. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-yxjgan53.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D)** 9. Select the **Adjust the membership being sold** checkbox to add additional tasks to the recurring service invoice template. 10. Select **Add additional tasks to the recurring service invoice template** to add recurring services to the invoice template. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-vjivz27n.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D) 11. Click **Add tasks/materials**. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-w1r5seof.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D) The *Create Invoice Template* window opens. 12. In the *Create Invoice Template* window, click **Add Service**. 1. Search for your service in the *Search* field. 2. In the *Quantity* field, enter the amount of times this service will be performed per year. > [!NOTE] > **Note:** This will be calculated as deferred revenue. *![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-3v2gndgx.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D)* 13. When you are finished adding services and materials, click **Add to Recurring Service**. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-81eli1e6.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D) 14. The Create Recurring Service Invoice Template closes and returns you to the Edit Service Workflow screen. If you are finished, click **Save**. ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/attribute-deferred-revenue-to-a-membership-recurring-service-add-on-image-qti02kl2.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A31%3A29Z&se=2026-11-09T12%3A31%3A29Z&sr=c&sp=r&sig=kIFiBYLOvlVr2GSF0cL%2F9xgn%2B3P64lOUqfzp%2FmbznGw%3D) Your recurring service add on is attributed to deferred revenue. ## ## Want to learn more? - See [Set up deferred revenue for Membership types](/residential-s-r/docs/set-up-deferred-revenue-for-membership-types) - See [Configure invoice templates for deferred revenue](/residential-s-r/docs/configure-invoice-templates-for-deferred-revenue) Deferred revenue is used in accrual accounting to manage advanced payment for upcoming services. After accepting payment, you only recognize it as income upon delivery of services, when the revenue is earned. Memberships use deferred revenue to account for recurring services included with a membership. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) **a.k.a.** deferred income Split determines how much credit each technician is getting for the job. For example: If two technicians perform work on a job, the split could be an even 50%-50%, or it could be 75%-25% if the first technician did a bulk of the work. By default 100% of the technician split will go to the first technician assigned to the job. [Learn more →](https://help.servicetitan.com/docs/servicetitan-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) The package of service visits included with a membership. When you sell a membership, recurring services are attached to the customer service location with details including start dates, service recurrence, and preferred technician. These details are used to create recurring service events. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) Invoice templates are used to generate invoices for recurring services and billing invoices. They include the pricebook items for services performed during a recurring service job or for periodic billing of ongoing memberships. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) The template used to set up a membership for a customer. It includes recurring service types, tags, pricing, accounting details, and duration and billing details. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)