Service types are mainly used to denote damages in visual inspections. 

You can create service types and select damage icons for them...

...so that when you tap the 'Wrench&Hammer' icon in the lower-left corner of the 'Visual Inspection' screen, you can see these service types with the appropriate damage icons. 

You can assign services to service types... 

...so that when you tap a service type on the 'Visual Inspection' screen, you can see the services assigned to this type.

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