Set up automated refund workflow

Overview

ServiceTitan's automated refund workflow asks you a series of questions about the refund and then creates the proper accounting transactions on your behalf. Whether you are returning a deposit on a canceled job, appeasing an upset customer, or for any other reason, automated refunds save you time and ensure GL accounting is correct. Completing a refund properly the first time avoids having to manually create an adjustment invoice to correct a balance.

Things to know

• Once the automated refund workflow is set up, the workflow can be used to:

  • Issue refunds for payments that have been applied to an invoice

  • Issue refunds for unapplied payments

  • Edit or delete a refund

• As you're creating a refund, hover over the Information icons for additional details.

• The refund item should not be taxable.

• If you are just starting in ServiceTitan and don't already have invoice items or payment types for refunds set up, then use default options when you set up refunds to ensure accounting entries are handled correctly.

• A manually created adjustment invoice won't appear on the printed invoice. Refund invoices generated through the automated refunds workflow are used as separate entities and aren't linked to the originating invoice. You need to print or email the refund invoice separately.

Set up automated refund workflow

To use automated refunds, you'll set up the automated refund workflow by mapping each refund reason to a service and each refund method to a payment type. This will allow ServiceTitan to automatically create the refund records for you when you are ready to process refunds.

Note: If you are new to processing refunds in ServiceTitan, we recommend selecting default options.

1. Go to the navigation bar and click Settings . In the side panel, click Invoicing > Payment Collections.

2. Toggle Automated Refunds Workflow to Active. Automated Refunds Workflow opens. 

   Note: Payment Collections must be enabled for your account to use the automated Refunds Workflow. If it is not enabled, contact your success or implementation manager.

3. In the Assign Service section, for each refund reason, assign a service from your pricebook and map it to a GL account:

   1. Click the Service dropdown and select a pricebook task. 

      Tip: If you don't have pricebook tasks which you want to use to track refunds, click or use ServiceTitan's default.

       A Refund service is automatically created in the Pricebook and maps to Customer Complaint and Billing Error Refund Reasons. 

   2. Click the GL Account dropdown and select a GL account for each service. 

      Note: If you select a task type with a GL account already mapped to it, changing the GL account updates it in the pricebook. You see this message:

       

4. In the Assign Payment Type section, for each refund method, assign a payment type and map it to a GL account:

   1. Click the Payment Type dropdown and select a payment type.

   2. Click the GL Account dropdown and select a GL account. 

      Note: For a check refund, we recommend mapping to a liability account.

      Tip: If you don't have a payment type which you use to track refunds, click or use ServiceTitan's default.

       Two refund payment types are automatically created and map to Credit Card or ACH and Check Refund Methods. 

      Note: If you select a payment type with a GL account already mapped to it, changing the GL account updates it in the Payment Type settings. You will see this message:

       

5. When you're done, click Save.

Want to learn more?

• Visit the Academy and enroll in Automated Refunds Workflow Setup

• See Refund payment applied to an invoice

• See Refund unapplied payment

• See Edit or delete refunds