--- title: "Memberships concepts" slug: "memberships-concepts" tags: ["Area - Memberships", "Focus - Service Replacement", "Role - Admin", "Type - Residential"] updated: 2026-10-16T01:11:59Z published: 2026-10-16T01:11:59Z canonical: "help.servicetitan.com/memberships-concepts" --- > ## 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. # Memberships concepts ## Overview Memberships give customers discounts on materials and services usually in exchange for a monthly fee. ServiceTitan offers multiple methods of membership configuration, including options for Deferred revenue. Before you start using memberships, you'll need to know how to set them up, configure them, and more. --- ### ****Who uses this feature**** - Administrators and managers - Primarily benefits Residential Service and Replacement business types - Applies to all trades ## Membership settings Most of the membership setup is done in the Membership Wizard (**Settings** **>** **Invoicing** **> Membership types**). The Membership Wizard walks you through all membership settings, including the member discount, membership duration, Recurring services, billing setup, and more. For how to use the wizard, see [Create membership types](/residential-s-r/docs/create-membership-types). ## Membership Pricebook service items You can also use Pricebook to set up all the service items used with a membership: - The membership sales item: Pricebook item used when you sell a new membership. - The renewal item: Pricebook item used to renew the membership. - Billing Invoice template items (required for recurring billing only): Pricebook items used for billing charges on the billing invoice template. - Deferred revenue items (required for deferred revenue only): Two separate Pricebook items, in + and - amounts, used to trigger revenue recognition every time the service is booked. Add the +/- Pricebook items to the recurring service invoice template. - All of your membership Pricebook items can be found in **Settings** **> Pricebook > Services**. - Only membership Pricebook items are allowed on membership billing invoices. See [Understanding membership discounts](/residential-s-r/docs/apply-membership-discounts) to learn more about setting up memberships in your pricebook. ## Additional Pricebook setup You may need to create additional service items directly in your pricebook, depending on the membership type. For example, an accountant may need to map each membership billing and sales item to the correct General Ledger Account. See the Quick Setup Guides on the [Memberships landing page](/residential-s-r/docs/memberships-home) to learn more. ## Recurring Service Types The Membership Wizard will help you set up a Recurring service type for every service included with the membership. - Each Recurring Service Type will be set up with the appropriate recurring service invoice template. - The Recurring Service Type sets the frequency of the recurring services (annual, seasonal, monthly, bi-monthly, etc). - You can set up a recurring service type with job details to save your customer service representative time as they book Recurring service events into jobs. See [Manage recurring services](/residential-s-r/docs/manage-recurring-services) to learn more. > **Note:** You can use the same recurring service type on multiple membership types. All of your existing recurring service types can be found in **Settings > Invoicing > Recurring Service Types**. ## Invoice templates You’ll need to set up different kinds of invoice templates, depending on the membership type: - If the membership has recurring billing, you'll need to set up a membership billing invoice template. - You might want to set up an invoice template for each recurring service. The recurring service invoice template is used every time the service is booked. For how to use invoice templates, see [Create and edit invoice and Billing templates](/residential-s-r/docs/create-and-edit-invoice-and-billing-templates). ## Deferred revenue setup If your membership is set up for deferred revenue—meaning that your business recognizes revenue as recurring services are performed—you'll need to set up the recurring service invoice template to trigger revenue recognition. > **Note:** You can use the same invoice template on multiple membership plans. All of your existing invoice templates can be found in **Settings > Invoicing > Invoice Templates**. See [Setup deferred revenue](/residential-s-r/docs/set-up-deferred-revenue) to learn more. ## Membership add-ons Configuring membership add-ons is optional, but you might want to set them up when selling customized membership plans. Set up membership add-ons directly in your pricebook (**Settings** **> Invoicing > Pricebook** **>** **Services**). ## ## Want to learn more? - See [Set up membership add-ons](/residential-s-r/docs/set-up-membership-add-ons) 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 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) 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 recurring services for a service location. It includes details to help book recurring service events into jobs including job type, business unit, recurrence type, and duration type. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) Recurring service events appear in Follow Ups where they can be booked into jobs. They are scheduled based on the frequency details of a service location's recurring services. The recurring service event includes details from the recurring service to help job booking. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview) Billing templates are a type of invoice template that include the pricebook item used to generate billing invoices for ongoing memberships. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)