A huge problem with memberships & deferred revenue

scottf_GBO
Contributor II

In the update, there was a change in membership settings.  You now set the deferred revenue division when adding the recurring service.  The only options are to "Divide Evenly (100%)" or manually... the problem is that it does not recognize when you have 2 of the same services in 1 year.  It changes the preset template to the full amount for the year instead of half.  

Example - $174/ yr for membership; 2 recurring services - AC maintenances (same service, twice per year)

Recurring service template is set to recognize $87 each visit (divided evenly)

When you sell the membership... go to location/ recurring service and click to edit it.  ST now forces the template to change to recognize $174 each visit. 

 

Your accounting will be so far off because this will attempt to recognize the full revenue EACH visit.

Scott Forbes
Custom Climate Concepts
3 REPLIES 3

scottf_GBO
Contributor II

Almost a month and still no help on this ๐Ÿ˜ 

Scott Forbes
Custom Climate Concepts

scottf_GBO
Contributor II

And I am NOT getting any help from ST to fix this!

Scott Forbes
Custom Climate Concepts

scottf_GBO
Contributor II

Now ST is telling me "a membership year is 364 days.  So in the 1st membership year there is only one recurring event."  So basically a 2x/ year recurring event happens every 6 months, pushing the 2nd event into a new year... which will INCORRECTLY divide the deferred revenue.  Their logic is that in the 2nd year, it will recognize 2 visits.  The problem being that it will recognize the 2nd visit from year 1 and the 1st visit from year 2.  Now, what happens if someone moves or decides to cancel?  ALL of the deferred revenue will be messed up. 

This is a Service Titan issue that needs to be fixed.  This was never a problem before.

Scott Forbes
Custom Climate Concepts