Overview
Use this guide to understand all the available accounting options for memberships, how they are billed, and how the revenues are recognized.
Who uses this feature
Office employees
Primarily benefits Residential Service and Replacement business types
Applies to all trades
Feature configuration
Account configuration is required to use this feature. Please contact Technical Support for details.
How is the membership billed?
The entire cost of the membership is due when the customer signs up (there is a one-time charge for the membership).
The customer pays a certain amount up front (for example, a sign-up fee or first month’s dues). Once a customer signs up, there will be recurring billing (repeat billing) for the membership. These are otherwise known as membership charges, or membership dues. Your recurring billing options include monthly, every other month, quarterly, annual, and bi-annual intervals.
How do you want to realize revenue?
Revenue realized at the point of sale
Funds collected from the customer go directly into an income account. This means that the memberships revenue is recognized immediately.
Funds collected from the customer will go to a liability account; revenue will be realized as services are completed.
The recurring service invoice templates will be set up to trigger revenue recognition.
You can use the Memberships Wizard to set up an allocations table (the percentage of membership revenue that will be realized when the service is performed).
Choose the membership option that's right for you:
Type of membership | Quick Setup guide |
|---|---|
Membership paid up front, revenue is deferred | |
Membership paid up front, revenue is realized at the point of sale | |
Membership with recurring billing, revenue is deferred | Quick Setup Guide: Membership with recurring billing, revenue is deferred |
Membership with recurring billing, revenue is realized at the point of sale | Quick Setup Guide: Membership with recurring billing, revenue realized at the point of sale |