Touchless Integration overview

Overview

Touchless Integration lets you use ServiceTitan as a near-real-time record of your financial transactions. When transactions are generated in ServiceTitan, the corresponding financial entries, also known as journal entries, are exported within two minutes. This eliminates the manual process of batching, posting, and exporting your transactions to your accounting software.

How Touchless Integration works

This section outlines the key steps in how Touchless Integration processes transactions and updates your accounting system.

Create invoices

The Touchless Integration uses each invoice as the central starting point for creating corresponding journal entries in your accounting system. Every transaction that happens on that invoice, whether it’s a task, materials, equipment, or payment, is automatically categorized based on the accounting mapping you set up ahead of time.

Automatic journal entries

Based on your settings, journal entries are automatically generated for each transaction. These journal entries include financial details that impact your general ledger accounts. For example:

• Debit: Accounts Receivable for unpaid invoices or the Payment account for paid invoices.

• Credit: Revenue accounts for each line item on the invoice. 

Automatic sync of journal entries

The journal entries are then automatically synced to QuickBooks Online or Intacct. Automatic sync occurs every few minutes.

Close accounting period

Close the accounting period to prevent any changes on transactions within that period. This includes adding, deleting, or modifying details in the transactions. This ensures that no updates made to historical transactions can be synced over to QuickBooks Online and Intacct. A closed accounting period also prevents additional exports.

Day-to-day impact

You don’t need to manually enter invoices, assign transactions to accounts, or reconcile individual payments. Instead, ServiceTitan automatically posts journal entries to your accounting system as transactions occur, helping simplify the reconciliation process at the end of the day or month.

How journal entries are generated

Every financial transaction in ServiceTitan, from invoices to vendor bills, creates a corresponding journal entry. These entries track the movement of money across various accounts in your general ledger, ensuring accurate financial reporting.

ServiceTitan automatically generates journal entries for:

• Invoices and adjustments: Tracks revenue, customer payments, and changes.

• Customer deposits and applied payments: Manages prepayments and their application to invoices.

• Credit memos and refunds:  Records customer refunds or adjustments.

• Bank deposits: Reflects payments received and deposited into bank accounts.

• Bills and vendor credits: Tracks expenses related to vendor purchases.

• Inventory adjustments: Adjusts inventory levels when materials are used or received.

• Service agreements: Recognizes revenue over time for recurring service agreements.

You have control over which types of transactions sync to your accounting system, ensuring that only relevant financial data flows between ServiceTitan and your books.

For more on journal entries in ServiceTitan, see Journal entries overview.

Impact on manual data entry

ServiceTitan simplifies financial data management by converting transactions, such as invoices, payments, and applied payments, into ledger entries. This ensures transactions are accurately categorized and flow correctly into financial statements like the Profit & Loss Statement and Balance Sheet.

Impact on your manual data entry process include:

• Less manual entry: With automated journal entries, fewer manual adjustments are needed, reducing the time spent on data entry.

• GL mapping is essential: Properly mapping GL accounts in ServiceTitan ensures revenue, expenses, and liabilities are correctly categorized.

• Reconciliation is still required: While automation minimizes manual work, regular reconciliations in your accounting software remain necessary to maintain accuracy.

If you manually record these transactions, workflows may need adjustments to prevent duplicate journal entries.

Debit and credit entries

See the table below to view the debit/credit entries that ServiceTitan creates based on transaction type.

Note: Customer deposits are considered deposits made before the job has been completed and the Deposit Workflow is enabled. Invoices are only considered if the job has been completed. Straight-Line Revenue Recognition refers to service agreements only.

Handling customer deposits and applying payments

When a customer makes a deposit before being invoiced, the payment goes into a customer deposit liability account. This is not considered revenue at this point. Instead, it is classified as a liability on the balance sheet until the payment is applied to an invoice.

When the invoice is finalized, the deposit is applied, and the funds move from the liability account to reduce the Accounts Receivable (AR). This transition is managed through a journal entry, ensuring accurate accounting records.

If a payment is received before an invoice is finalized, it is treated as a deposit and classified as a liability. This behavior is part of the Deposit Workflow, which is an optional feature that you can enable.

• When the Deposit Workflow is enabled, all payments are treated as deposits. If the payment is applied to an invoice, the deposit is immediately used to reduce Accounts Receivable (AR).

• When the Deposit Workflow is not enabled, any payment received before the invoice is finalized will be applied directly to AR.

When the Deposit Workflow is enabled, all payments are recorded as deposits. Applying payments to an invoice immediately also reduces AR at the same time.

Using the All Payments Report and Accounting Audit Trail

Use the All Payments Report to track all payments entered in ServiceTitan This report includes:

• Amount Allocated: Amount of the payment has been applied to one or more invoices

• Credit Remaining: Amount of the payment still available to be applied to one or more invoices 

• Refunds or Reversals: The report also details any refunds or payment reversals that were processed.

Use the Accounting Audit Trail feature to see when payments were created, modified, applied, unapplied, or deleted.

Handling vendor bills and inventory costs

If procurement sync is enabled, vendor-related expenses automatically flow into your accounting system. When you receive vendor bills, ServiceTitan syncs them as accounts payable (AP) you can use for your records.

Material costs are categorized based on your Pricebook settings:

• Non-inventory items: Expensed immediately under Cost of Goods Sold (COGS).

• Inventory items: Increases inventory balance when on bills and expenses only when used on a job.

This ensures that costs are recorded accurately, whether materials are expensed at the time of purchase or when consumed.

Note: When non-inventory items are added to invoices, they will have no financial impact, but you may charge for those items which will have financial impact.

Commissions and payroll tracking

ServiceTitan also tracks commissions and payroll within its accounting tools. Commissions can be structured for technicians, sales reps, and managers based on job revenue, ensuring fair and accurate payments.

• Commission calculations are based on pre-tax revenue.

• Custom reports allow businesses to analyze commissions by job type or other factors.

Payroll reports also track labor costs, helping businesses accurately allocate expenses and manage profitability.

Accounting periods

Accounting periods prevent changes to finalized transactions. When an accounting period is closed:

• Transactions within that period can’t be modified or deleted.

• Data remains locked to maintain reconciliation with your accounting system.

• Any necessary adjustments must be made through adjustment invoices instead of modifying past records.

An accounting period can be reopened if necessary, but we recommend that you ensure the corresponding period in your accounting system is also open to avoid discrepancies.

Want to learn more?

• Visit ServiceTitan Academy and enroll in Accounting Basics

• See Intacct

• See QuickBooks Online

• See Touchless Integration - FAQ