---
title: "Why was a cancellation invoice created for a membership?"
slug: "why-is-there-a-membership-cancellation-invoice-created"
tags: ["Area - Memberships", "Focus - Service Replacement", "Role - Admin", "Role - CSR Dispatch", "Type - Residential"]
updated: 2026-10-16T01:16:55Z
published: 2026-10-16T01:16:55Z
canonical: "help.servicetitan.com/why-is-there-a-membership-cancellation-invoice-created"
---

> ## 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.

# Why was a cancellation invoice created for a membership?

## Problem

An employee updated a membership’s status from *Expired* to *Canceled*, which automatically generated a cancellation invoice.

## Solution

1. Understand why the invoice is created. The system automatically generates a cancellation invoice when a membership status changes from *Expired* to *Canceled*. These settings can be changed in **Membership types** settings.
2. Check the membership Audit Trail:
  1. Go to the customer profile.
  2. Find the membership that the invoice belongs to.
  3. Review the audit trail by clicking **View Audit Trail** to confirm that the status change to *cancel* led to the invoice creation.
3. Find the invoice created by the system and review it.

> [!NOTE]
> **Note:** The invoice should be zeroed out due to the cancellation status, meaning no balance should be left.
4. Adjust membership cancellation settings (if necessary):
  1. Go to **Settings** ![A simple icon representing a settings gear.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/icon-gnav-settings-inactive.png?sv=2026-02-06&spr=https&st=2026-11-09T11%3A30%3A04Z&se=2026-11-09T12%3A30%3A04Z&sr=c&sp=r&sig=pTO6HQUKe3IcRpFYXePlBrv8i5CVRX080Ka%2Bf1h5Tac%3D) **> Invoicing > Membership Types > Recurrences > Revenue Recognition**.
  2. Find the question *If a canceled membership has a leftover balance, what do you want to do?*
  3. If you prefer not to generate a cancellation invoice, select **Do not create a charge/refund invoice** or **Option to create a charge/refund invoice**.

> [!WARNING]
> **Caution:** Be careful with the **Do not create a charge/refund invoice** setting if there's Deferred revenue and a remaining balance. We recommend you select **Option to create a charge/refund invoice** instead. This lets you decide how to handle any leftover deferred balance.

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)

A downloadable log of who changed what record and when.

**What it does:** Provides change history for accountability, error investigation, and compliance across teams.

**Also called:** Change history

**Tags:** Core

[See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)

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