Warranties (Manufacturer): recommended workflow

Things to know

Before using this workflow, set up Set recall, warranty, and lead job booking guides and use the Book a recall or warranty job workflow
Use this workflow when you sell the warranty for more than $0
Your account must be configured to "Allow Changing a customer for adjustment invoices"

Workflows

Create General Ledger Accounts Needed in QuickBooks and ServiceTitan

Set up General Ledger accounts with the following names and types:

Warranty Receivable (Other Current Asset)
Warranty Income if desired (This depends on where the Warranty Income should be recognized. You might want to record it in Job Income, etc.)
If applicable: Be sure to map these new accounts in Settings> Quickbooks Desktop> Chart of Accounts Mapped
1. Configure ServiceTitan With QuickBooks walks you through the steps

Create Warranty Pricebook Services

Create the following pricebook services. For more information see Add services to your pricebook.

"Warranty Holding - Manufacturer" Service task and map it to Warranty Receivable
"Warranty Recognized" task and map it to Job Income or Warranty Income

Sell the warranty

Step 1: A normal invoice is created at the time of initial sale that does NOT include a warranty item.

Invoice detailing plumbing services, equipment costs, and warranty information for Practice Carlson.

Book the warranty and build the invoice

Step 2: From the call booking screen search for the customer that needs the warranty job performed. Follow the steps outlined in Book a recall or warranty job..

Job details for a warranty service at Practice Carlson in Niles, Ohio.

Step 3: On the invoice for this job use these tasks:

"Warranty Recognized" for a POSITIVE amount (This will credit/Increase your revenue/income account)
"Warranty Holding" for a NEGATIVE amount (This will debit your Warranty Receivable account)
These tasks should both have the same value, leaving the customer total at $0
Overall, this process is very similar to tracking deferred revenue for memberships.

Invoice summary showing warranty details and associated tasks for plumbing services.

Step 4: Create an adjustment invoice to be sent to the manufacturer.

On this adjustment invoice:

Change the Bill-To Customer to the Manufacturer.

Invoice details including billing information and service location for plumbing services.

To do this, click on "Update Invoice Details" and change the bill-to customer to the manufacturer while leaving the service location unchanged.

Step 5: Once payment from the Manufacturer is received, record it like normal.

Invoice details showing payment status, amount, and transaction information for a service job.