--- title: "What's the reason for dividing deferred revenue by the amount set up for recurrence, and how does it work for memberships that last different times and happen at different intervals?" slug: "whats-the-reason-for-dividing-deferred-revenue-by-amount-set-up-for-recurrence" tags: ["Area - Memberships", "Focus - Service Replacement", "Role - Admin", "Type - Residential"] updated: 2026-10-16T01:17:10Z published: 2026-10-16T01:17:10Z canonical: "help.servicetitan.com/whats-the-reason-for-dividing-deferred-revenue-by-amount-set-up-for-recurrence" --- > ## 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. # What's the reason for dividing deferred revenue by the amount set up for recurrence, and how does it work for memberships that last different times and happen at different intervals? ## Problem Users may find that Deferred revenue for some memberships is calculated differently. This issue arises when the recurrence of service events is set differently for each Membership type, such as monthly with a continuous duration, instead of the standard annual recurrence. ## Solution #### **Understand deferred revenue calculation** Deferred revenue starts with the total sale price of the membership. The length of the membership and the number of Recurring service events determine how revenue is recognized. For example, if a membership price is $120 and the recurrence is set for 12 months with 4 recurring service events, divide $120 by 4. You get $30 per service event. #### **Understand continuous duration** A *Continuous* duration means services will recur indefinitely at the set interval. Ensure the recurrence interval matches the expected frequency of service events for continuous memberships. #### **Identify the recurring services' setup** Check what the membership types' Recurring Service recurrence is set to and the duration type. 1. Go to the navigation bar and click **Settings** ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/organize-and-reorder-technician-teams-image-64mayqjl.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A42%3A44Z&se=2026-11-09T12%3A42%3A44Z&sr=c&sp=r&sig=VVQNQBwBw%2BJHdGAF8IDCfcJo%2F9sAz8GLJEXnlnE4WBI%3D) **>** **Invoicing > Membership Types**. 2. Edit the membership type that you want to check. 3. Under Step 2, click the **Recurrences** dropdown, then select **Add Recurring services.** 4. Click **Edit Existing Service**. 5. Check what the *Recurrence Type* and *Duration Type* set is for each recurring service added to the membership type. #### **Fix deferred revenue calculation** 1. Go to the membership details page in ServiceTitan. 2. Find the membership with the incorrect deferred revenue calculation. 3. Edit the membership settings. Change the recurrence interval to match the intended service frequency. > [!NOTE] > **Note:** If the membership is intended for annual service events, set the recurrence to 12 months. 4. Adjust any related Invoice templates to reflect the correct revenue recognition amount. #### **Adjust individual memberships** 1. If a Customer Membership was set up incorrectly, navigate to the specific invoice linked to the membership. 2. Manually edit the tasks related to deferred revenue. For example, change tasks from +49.83 and -49.83 to +299 and -299 to correct the revenue amount. 3. Confirm the changes to ensure the deferred revenue is now calculated correctly. By following these steps, you can correct and understand the logic behind deferred revenue calculations for memberships with various durations and recurrences in ServiceTitan. 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) 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) 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) When sold, a customer membership is configured from the membership type. You add customer-specific details like billing information, service location, and recurring services. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)