New functionality is introduced to create Fixed fee and Agreed fee type of matters. Fixed fees / Agreed in the legal industry is a fixed amount paid for work or a service which does not change based on the time taken to complete the work or the amount of service used. This functionality is parameterised.
While creating a matter, user can define the matter type to be fixed fee or agreed fee and specify the billing amount to be considered.
When a matter is created with a billing type of Fixed fee. The hour, fee and disbursements transactions are posted for Fixed fee type of Matter. Fees and disbursements will be billed at their entered amount, whereas Hours would be calculated on a prorated basis for the Fixed fee Billing amount.
Fixed fee calculation: (Original Line Amount / Sum (Fixed Fee Elected Lines)) * Value in Billing Amount Field
When a matter is generated for a matter type Agreed fee. The hour, fee and disbursements transactions are posted for Agreed fee type of Matter. Fee and disbursement will be billed at their entered amount, whereas Hours would be calculated on prorate basis for the remaining amount. The hour, fee and expenses amount together will equal to the billing amount specified on the matter.
The invoice proposal generated will reflect the prorated calculation for the hour transactions. Any Adjustment made to an hour transaction will recalculate all hour transactions based on the amount defined in ‘Billing amount’, on the pro-rata basis.
Reversal / Credit notes posted for Fixed fee/Agreed fee invoices will revert the pro-rated transactions back to their original entered amounts and make them available for re-billing.
Through the Update matter billing amount drop dialog button in the Matter invoice proposal level users can update billing amount at the matter level if required. Updating the billing amount in the drop dialog field will update the Matter form and all the open matter invoice proposal forms. Declining balance method functionality allows user to specify the total matter value and the balance is reduced on posting subsequent fixed / Agreed fee matters, Users have option to exclude billing invoices that do not form part of declining balance.
Bills generated to the client have the flexibility to consolidate the amount of work performed on summary or detail basis. This feature enables a user to summarize or provide in-detail of the work performed on bills for transaction type hours. User can group disbursements and fees as well as per the business need for fixed fee and agree fee type of Matter. Matter Invoice Group form added determines the way the invoice lines will be grouped to form the Invoice lines
Trust Accounting
New functionality has been introduced to handle and maintain client monies and usage of monies from client bank accounts while invoicing. User can specify the amount to be consumed against that particular invoice. In case shortage of funds user can transfer monies from other bank accounts to matter related client bank account to use against the invoice.
A new grid style user experience is provided at invoice proposal level as fast tab ‘Application of client monies’ which will allow the user to see the balances and update the funds usage.
On posting invoice proposal, TCOI journal gets automatically created to transfer client monies from client bank account to office bank account and its selects the posted invoice for settlement. When shortage of funds occurs a client transfer journal gets automatically created and posted and funds are transferred between the matters.
Multipayer
New functionality has been introduced to link payers or clients to a funding source and thus liable to pay Net amount and VAT. Payers form introduced enables creation of payer details, this form is linked to global address form. Newly created payers are further linked to a matter contract and to a funding source and further detailed on who would be paying the Net amount or VAT amount for the invoice in the payer allocation form. Thus, set payers are liable to pay.
When a matter is created and posted with multiplayer setups, the invoice is split into two separate lines, one for Net amount and VAT.
There are two invoice reports as well generated for Net amount and VAT with specific payer address and with suffixed invoice information. Thus, generated invoices are available in the customer transactions form and can be settled separately.
This feature is parameterized where new check box ‘Activate multipayer’ to enable this new functionality.
Client Deposit Accounting
The requirement for the Firm is to transfer Client monies from the Client’s bank account to a Firm’s Client deposit account (e.g. General deposit account). The reasoning for this is that the deposit account accrues more interest/revenue than a standard current bank account. The monies will be transferred daily between the above accounts with any interest being deposited back to the Firm’s Office Account.
The requirement is that all client monies must still be referenced against the relevant matter(s) and no postings for the Client Money – Deposit Account transfer transactions should be seen at the matter level whatsoever. The postings will only affect the Bank subledger, unlike the other client transactions that also affect the Matter subledger. The matter balances will remain the same throughout.
Matter Transactions and Reporting
When any write-off (adjustment) is required against any hard or anticipated disbursements then the Adjustment functionality must be used. Although by changing the sales amount will reduce the figure to be billed it does not fully write off the amount at the time of adjustment, in fact nothing is adjusted until billing is complete and if flushing through the Balance Sheet, this method would require a considerable amount of manual posting and reconciliation.
Any adjustments (write-offs of Hard/Anticipated Disbursements or Changing the Sales Amount for Soft Disbursements) should be completed on the Adjust transactions Screen. This screen can be accessed in the following ways.
Adjustment Screen Explained:
The top half of the Adjustment screen is used for adjusting Cost or in the case of some Clients, writing off Hard or Anticipated Disbursements:
The Total percentage should always be 100.00. The design solution below changes this to allow the Value rather than the percentage to be written off.
The bottom half of the screen is related to adjusting the Sales amount and will be used by Clients to change the Sales Amount on Soft Disbursements:
Reporting
A new Matter Transactions by Voucher report shows an updated version of the Matter Transactions report, grouping the transactions by voucher which will link together transactions with any adjustments made.
Inquiry
The Matter Inquiry now includes any Disbursements written off. Drill down link goes to same form as Disbursements but filters on Line Property Write-off.
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