---
title: "Membership accounting options"
slug: "membership-accounting-options"
tags: ["Area - Memberships", "Focus - Service Replacement", "Role - Accountant", "Role - Admin", "Type - Residential"]
updated: 2026-10-16T01:11:42Z
published: 2026-10-16T01:11:42Z
canonical: "help.servicetitan.com/membership-accounting-options"
---

> ## 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.

# Membership accounting options

## Overview

Use this guide to understand all the available accounting options for memberships, how they are billed, and how the revenues are recognized.

---

### 

****Who uses this feature****

- Office employees
- Primarily benefits Residential Service and Replacement business types
- Applies to all trades

****Feature configuration****

- Account configuration is required to use this feature. Please contact [Technical Support](http://go.servicetitan.com/ask) for details.

## 

## How is the membership billed?

**Paid up front**

The entire cost of the membership is due when the customer signs up (there is a one-time charge for the membership).

**Recurring billing**

The customer pays a certain amount up front (for example, a sign-up fee or first month’s dues). Once a customer signs up, there will be recurring billing (repeat billing) for the membership. These are otherwise known as membership charges, or membership dues. Your recurring billing options include *monthly, every other month, quarterly, annual,* and *bi-annual* intervals.

## How do you want to realize revenue?

**Revenue realized at the point of sale**

Funds collected from the customer go directly into an income account. This means that the memberships revenue is recognized immediately.

**Deferred revenue**

Funds collected from the customer will go to a liability account; revenue will be realized as services are completed.

The recurring service Invoice templates will be set up to trigger revenue recognition.

You can use the Memberships Wizard to set up an allocations table (the percentage of membership revenue that will be realized when the service is performed).

## Choose the membership option that's right for you:

| **Type of membership** | **Quick Setup guide** |
| --- | --- |
| Membership **paid up front**, revenue is **deferred** | [Guide to using the Pricebook to configure memberships](/residential-s-r/docs/guide-to-using-the-pricebook-to-configure-memberships) |
| Membership **paid up front**, revenue is **realized at the point of sale** | [Configure memberships for revenue paid up front](/residential-s-r/docs/configure-memberships-for-revenue-paid-up-front) |
| Membership with **recurring billing**, revenue is **deferred** | [Quick Setup Guide: Membership with recurring billing, revenue is deferred](/residential-s-r/docs/quick-setup-guide-membership-with-recurring-billing-revenue-is-deferred) |
| Membership with **recurring billing**, revenue is **realized at the point of sale** | [Quick Setup Guide: Membership with recurring billing, revenue realized at the point of sale](/residential-s-r/docs/quick-setup-guide-membership-recurring-billing-revenue-realized) |

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

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)