--- title: "Configure recurring service types for deferred revenue" slug: "configure-recurring-service-types-for-deferred-revenue" tags: ["Role - Admin", "Focus - Service Replacement", "Type - Residential", "Area - Memberships"] updated: 2026-10-16T01:13:58Z published: 2026-10-16T01:13:58Z canonical: "help.servicetitan.com/configure-recurring-service-types-for-deferred-revenue" --- > ## 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. # Configure recurring service types for deferred revenue ## Overview Configure your Recurring service types to recognize Deferred revenue from membership sales. For example, if a $200 annual membership includes four HVAC maintenance visits, you can configure your recurring service type to generate zero-dollar invoices that recognize $50 of deferred revenue for each visit. --- ### ****Who uses this feature**** - Accountants, bookkeepers, and administrators - Primarily benefits Residential Service and Replacement business types - Applies to all trades ## Things to know - Before you start, make sure your [ServiceTitan account is set up for deferred revenue](/v1/docs/set-up-deferred-revenue). - If you set up a Membership type with automatic deferred revenue calculations, invoices are calculated using the membership type settings, not the Invoice template settings. ![Membership revenue recognition options include point of sale and deferred selections.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/configure-recurring-service-types-for-deferred-revenue-image-jfrj0o8m.png?sv=2026-02-06&spr=https&st=2026-11-09T16%3A41%3A07Z&se=2026-11-09T17%3A41%3A07Z&sr=c&sp=r&sig=n%2BmnX8ecTDNCpbHriRWF%2BUqtWw0Am4GpVR%2FBzzaZaHY%3D) ## Configure a recurring service type A recurring service type generates a zero-dollar invoice using the invoice template you add: 1. [Edit the recurring service type](/v1/docs/create-and-edit-recurring-service-types) you want to configure. 2. In the *Edit Recurring Service Type* screen, if an invoice template is attached to the record, click **Clear**. Click **Clear** in the pop-up to confirm. ![Invoice template displaying services, prices, quantities, and a clear button option.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/configure-recurring-service-types-for-deferred-revenue-image-iuafi5s1.png?sv=2026-02-06&spr=https&st=2026-11-09T16%3A41%3A07Z&se=2026-11-09T17%3A41%3A07Z&sr=c&sp=r&sig=n%2BmnX8ecTDNCpbHriRWF%2BUqtWw0Am4GpVR%2FBzzaZaHY%3D) 3. Add an invoice template to the record: 1. Click the **Invoice Template** dropdown and select an existing [invoice template configured for deferred revenue](/v1/docs/configure-invoice-templates-for-deferred-revenue). ![](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/configure-recurring-service-types-for-deferred-revenue-image-fqu60nle.png?sv=2026-02-06&spr=https&st=2026-11-09T16%3A41%3A07Z&se=2026-11-09T17%3A41%3A07Z&sr=c&sp=r&sig=n%2BmnX8ecTDNCpbHriRWF%2BUqtWw0Am4GpVR%2FBzzaZaHY%3D) 2. Click **Create Invoice Template** to set up a new invoice template. The *Create Invoice Template* page opens: 1. In the *Services* section, click **Add Service**. 2. In the **Search** field, enter a few letters of the positive-dollar Pricebook item name or code. Select the item from the dropdown. ![Dropdown menu showing services](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/configure-recurring-service-types-for-deferred-revenue-image-hqiocboy.png?sv=2026-02-06&spr=https&st=2026-11-09T16%3A41%3A07Z&se=2026-11-09T17%3A41%3A07Z&sr=c&sp=r&sig=n%2BmnX8ecTDNCpbHriRWF%2BUqtWw0Am4GpVR%2FBzzaZaHY%3D) 3. To change the amount of revenue recognized for each completed recurring service event, in the **Unit Price** field, enter the amount of revenue you want to recognize. This does *not* change the unit price of the item in your pricebook. > [!TIP] > **Tip:** If you automatically calculate deferred revenue in the Memberships Wizard, enter $1.00. The amount adjusts based on how you configure the membership settings. 4. In the *Services* section of the invoice template, click **Add Service** and follow the previous steps to add the negative-dollar service item. 5. Make sure the **Unit Price** is a negative amount equal to the positive-dollar service item. This amount is debited from the GL liability account. > [!TIP] > **Tip:** If you automatically calculate deferred revenue in the Memberships Wizard, enter -$1.00. The amount adjusts based on how you configure the membership settings. ![Table displaying services with codes, quantities, and total prices for deferred revenue.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/configure-recurring-service-types-for-deferred-revenue-image-q3u4ei8z.png?sv=2026-02-06&spr=https&st=2026-11-09T16%3A41%3A07Z&se=2026-11-09T17%3A41%3A07Z&sr=c&sp=r&sig=n%2BmnX8ecTDNCpbHriRWF%2BUqtWw0Am4GpVR%2FBzzaZaHY%3D) 6. To add materials: 1. In the *Materials* section, click **Add Material**. 2. In the **Search** field, enter a few letters of the Pricebook material item name or code. Select the item from the dropdown. ![Materials list with options](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/configure-recurring-service-types-for-deferred-revenue-image-qzjcqm0a.png?sv=2026-02-06&spr=https&st=2026-11-09T16%3A41%3A07Z&se=2026-11-09T17%3A41%3A07Z&sr=c&sp=r&sig=n%2BmnX8ecTDNCpbHriRWF%2BUqtWw0Am4GpVR%2FBzzaZaHY%3D) > [!NOTE] > **Note:** You can also charge the customer for materials that are used. For more information on how to do this, see [Create and edit invoice and Billing templates](/v1/docs/create-and-edit-invoice-and-billing-templates). 7. When you're done adding services and materials, click **Add to Recurring Service**. 4. In the Edit Recurring Service Type screen, click **Save**. Use this recurring service type when you [set up deferred revenue for a membership type](/v1/docs/set-up-deferred-revenue-for-membership-types). ## Want to learn more? - See [Create and edit recurring service types](/v1/docs/create-and-edit-recurring-service-types) The template used to set up recurring services for a service location. It includes details to help book recurring service events into jobs including job type, business unit, recurrence type, and duration type. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [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 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) 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) Billing templates are a type of invoice template that include the pricebook item used to generate billing invoices for ongoing memberships. [Learn more →](https://help.servicetitan.com/docs/memberships-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)