Overview
To create a service agreement you need to add and activate at least one service agreement template.
Who uses this feature
Administrators, accountants, estimators, project managers, and operations managers.
Primarily benefits Commercial Service and Replacement business types
Applies to all trades
Things to know
Service Agreement Templates can't be deleted, only deactivated.
Edits to a service agreement template DO NOT impact agreements created in the past. Only new agreements created using the edited template contain the updates.
Add a service agreement template
Go to the navigation bar and click Settings
.In the side panel, click Operations > Service Agreement Templates.
Click Add to add a new service agreement template.
On the Add Service Agreement Template screen that opens, provide the following details:
For Name, enter a unique, brief, and descriptive name.
Select a Tag for the service agreement template. These tags appear on the Customer, Location, and Jobs screens when the agreement is in Activated status.
Note: If the tag you want to add is not available, go to Settings
> Operations > Tag Types and create a new tag. For more, see Manage tags.For Revenue Recognition, select how revenue received is treated for agreements that use this template. You can choose one of the following methods:
Immediate Recognition: The system sends the revenue received from this agreement directly to the income general ledger account selected in the template.
Deferred Recognition: Revenue received from this agreement is deferred in the liability general ledger account selected in the template. This deferred revenue is then recognized in the income general ledger account as services are delivered.
Select the Billing Pricebook Service, if you select Immediate Recognition for the Revenue Recognition method.
Note: If you selected Deferred Recognition for the Revenue Recognition method, provide additional information about the General Ledger Account, Canceled Agreements, Billing Pricebook Service, Negative Liability Pricebook Services, and Positive Income Pricebook Services.
(Optional) Enter Default Values. These values are used for service agreements built from this template:
Add Client-Specific Pricing: Select a client-specific pricing rule that is enforced.
Document Template Design: Select a template design that is used when printing and emailing the agreement.
Duration: Select the duration of the agreement in months or years.
Billing Schedule: Select the frequency at which the customer is billed.
Payment Term: Select how the payment term value is determined.
Auto-renew: Select this if you want the agreement to be automatically renewed on its expiration date.
Start Date Logic: Select how the agreement start date is set.
Pricing Logic: Select how the total agreement price is calculated.
Material Cost - Markup Value (%): Enter the percentage markup applied to the total material cost.
Labor Cost - Markup Value (%): Enter the percentage markup applied to the total labor cost.
Material Cost - Surcharge ($): Enter the dollar amount added to the total material cost.
Labor Cost - Surcharge ($): Enter the dollar amount added to the total labor cost.
Labor Cost/Hour: Enter the hourly labor cost used to calculate the labor cost per visit.
Extra Travel Labor Cost/Hour: Enter the hourly labor cost used to calculate the Extra Travel Cost.
Marketing Campaign: Select the campaign value used when booking visits into jobs.
Tip: Setting these Default Values will automatically pre-populate fields when creating service agreements, helping to reduce clicks and setup time.
When finished, click Save.
Edit a service agreement template
Go to the navigation bar and click Settings
.In the side panel, click Operations > Service Agreement Templates.
Find the service agreement template you want and click Edit.
On the Edit Service Agreement Template - [Template name] screen that opens, edit your content as needed.
When finished, click Save.
Note: Edits to a service agreement template DO NOT impact agreements created in the past. Only new agreements created using the edited template contain the updates.
Want to learn more?
Visit ServiceTitan Academy and enroll in Creating & Managing Service Agreements