This will be our third year using the membership and deferred revenue feature in Service Titan. Something that we are consistently running into is deferred revenue balances on customer accounts being incorrect due to the automatic revenue totals that are developed by the system. Mind you the calculation for the deferred revenue is based off how many pieces of equipment (tasks) are added, how many recurring services those task have, and then divided by the number of billing months. We have one member who only gets maintenance done ONE time a year. Yet the revenue for their account after having service performed still shows they have $195 dollars of unrecognized revenue. Our office staff spend time daily going through these maintenance invoices and manually adjusting the revenue amounts so that there is accuracy. Needless to say this is getting quite redundant and is happening to pretty much all of our accounts.
Has your business faced these miscalculations with ON going deferred revenue membership plans? If so, what was your solution?
For any reoccurring services that are NOT used and the membership is expired, we dismiss said services so it does recognize the revenue. If you do not dismiss it then Service Titan will not recognize it. This applies to annual memberships only.
Go to the "Follow Up" tab at the top click. Then to the left click "expiring memberships" and enter your dates. You can either click multiple memberships that are annual and expiring and select "dismiss all". A prompt will ask if you want to recognize revenue select yes. Or! You can review each expired membership and manually click dismiss events in their membership page. Hopefully this helps. FYI if you do this, the day that you dismiss the service is the day the revenue is recognized. We pull this report on the very last day of each month.
I don't think I've ever run into that problem. I'd be interested to know if the "first visit completed" box is checked on the membership? In my opinion that box shouldn't exist and should never be checked!