ELITE ENTERPRISE Interim Bills Created by: Joselynn Curtis Presented by: Matt Jamma

AGENDA INTRODUCTION SET UPS GENERATION – INTERIM BILL APPLICATION BILLS CLOSING BILLS INQUIRY Q AND A

Definition What is Interim billing? There are multiple terms that have been used: Interim Bills Fixed Fee Bills.   On-Account Bills No “real” time or cost are included on the Initial bill. “Real” time is allocated to the bill once worked by the timekeepers

Interim Bill Basics There are 3 main components in the Interim billing process:  Interim Bills – Interim bills are bills for work in process on a matter. No time or costs have to be worked. The interim bill does not update the timekeeper, matter, or matter/timekeeper history. No hours are credited to any timekeeper until the Application Bill or Closing bill is run.  

Application Bills Applications to Interim Bills This feature allows you apply actual time and costs to the original interim bill.

Closing Bills Closing Bills Closing bills generate bills for actual time worked. They do update management reports and credit billed hours and costs to timekeepers. Closing bills can be run as many times as desired for the same matter. The closing bill process can automatically reverse any interim bills and re-apply the cash allocated to those interim bills. A closing bill cannot be generated if an application exists for the matter.

SET UPS

Interim Bills Set Ups Summary Billing Manager Control Defaults – Line 300 Line 8200 Ledger Codes – Interim Fee ledger Code needed

Ledger Code Set Up Choose Fees or Other – this indicates under which column in Inquiry and reports this ledger code should be included.

Ledger Code Set Up Y Normal Fixed Fee - Indicates that amounts will be applied to both fees and costs on an closing fixed-fee bill. This is the default A Fee Allocation - Indicates that allocations (using Manual or Other) are entered when the interim fixed fee bill is paid. F Fees Only - Indicates that interim fee bill amounts will be applied only to fees on the closing fixed fee bill. C Costs Only - Indicates that interim fixed fee bill amounts are applied only to costs on the closing fixed fee bill. ELITE RECOMMENDS - Y

The 5 stages of GL Masking Stage 1 - Batch Finalization – not needed for Interim Bills as no time is entered Stage 2 - Write Up/Down Finalization – not needed for Interim Bills as no time is entered Stage 3 - Bill Finalization – When the bill is generated – normally used by accrual firms only – Example DR AR CR Interim Fee Revenue

The 5 stages of GL Masking Stage 4 - Credit Finalization (collect) – when bill paid Used by all firms : Accrual Books DR – See PAY ledger code CR – AR Cash Books DR See PAY Ledger Code CR – Interim Fee Revenue Stage 5 - Credit Finalization (credit) – Write off – MUST be to Find me fix me account for ALL Firms

GL MASKING

Miscellaneous Default Line 300 - Fixed Fee Credit Alloc Method

Default Line 300 When preparing a closing fixed-fee bill, there is an option to reverse any interim fixed-fee bills. If the interim fixed-fee bill has credits applied against it, then the credit is also reversed and reapplied to the closing bill that is now being generated. This option determines which allocation method is used at the time the credit is reapplied to the closing bill. Select one of the following: P - Proportionally by working timekeeper; this is the default B - Billing timekeeper S - Supervising timekeeper O - Originating timekeeper

Miscellaneous Default Line 8200 Line 8200 – Use Orig Date/Doc for auto credit allocation

Default Line 8200 Y - Have the Auto Credit Allocation use the original date of the unallocated credit. For example, if this option is set to Y when using Auto Credit Allocation of unallocated credits during bill generation (the unallocated credits are reversed and reallocated to the bill being generated), the reallocated credit uses the original date of the original unallocated credit instead of the bill date. This option only works if credit ledger codes are used when the Auto Credit Allocation (lcautocr) flag is not equal to "N." N - Do not have the Auto Credit Allocation use either the original date or the original document number of the unallocated credit. This is the default. D - Preserve the original document number entered for the unallocated credit, instead of using the invoice number. B - Preserve both the original date and the original document number entered for the unallocated credit.

Bill Templates Bill Templates need to be designed to accommodate: Functions to be considered FFEE FDESC1 FDESC2

BILLING

BILL GENERATION – PROFORMA EDIT ADD INTERIM AMOUNT Note: When you want to generate an interim and NOT relieve any WIP, be sure your proforma does not have any time or costs included

BILL GENERATION- PROFORMA EDIT If the bill template function FFADESC1 is used on the bill, this description prints. This field will be beneficial when using the Applications to Fixed Fee Bills feature. To make the narrative look like multiple paragraphs use CTRL/ENTER twice to insert a blank line Use right mouse click to spell check Note:  When creating a Fee Interim Bill from Proforma Edit, multipayor records are created for multipayor proformas.  Interim Bills created through Bill Generation do not create multipayor records.

Printing Interim Bill

Bill Generation – Proforma /Bill Generation – fixed fee – Interim Bills

Bill Generation – Interim Bills Key Fields: Ledger Code - This determines the ledger category to which the interim fees should be charged. Enter the Interim fee ledger code that was created in Ledger Code Setup. Note: The ledger code must be a debit code where the fixed fee flag is set to "Y" (for Normal Fixed Fee), "F" (for allocation to fees only), "C" (for allocation to costs only), or "A" (for Allocation to timekeepers on Interim Fixed Fee Bills).

Interim Bill Info Tab

Key Fields Interim Bill Amount - Enter the amount that you want to bill on the interim bill. Bill Date - Enter the date to print on the bill. The bill date must fall no later than the ending date of the accounting period. Start/End Dates - Enter the beginning and ending dates of the interval for which you want to display timecards on the bill. Time and costs will display on the interim bill if your template calls for it.

More Key Fields Bill Template - Enter the code of the template to use for the interim fixed fee bill. Interim fixed fee bill templates are separate from other templates because the system is not calculating any time or costs. Tax Code - Enter the tax code for this interim fixed fee bill. The tax amount is calculated based on the tax code entered. In addition, the Tax code description displays: Note: Taxes should only be used with applications, not with closing bills.

More Key Fields Ledger Narrative - Enter up to 4800 alphanumeric characters as a narrative description for the interim bill. The first 60 characters print on a bill if the bill template contains the function, FFADESC1. Examples include "Retainer billing per agreement" and "Interim fee application." The first line of narrative displays in the Description field. NB when bill is generated using RUN button you can only sent to printer you cannot run to the background

INQUIRY

INQUIRY AND STATS BY MATTER NOTE INTERIM BILL VALUE NOTE AR INCREASES NOTE NEGATIVE NET UNBILLED FEES

INVOICE DETAIL APPEARS IN OTHER COLUMN NO HOURS OR VALUE ASSOCIATED

INVOICE DETAIL – LEDGER DETAIL DESCRIPTION COMES FROM THE INTERIM DESCRIPTION WHEN THE INTERIM WAS ENTERED

MATTER STATISTICS NOTE NO WORKED HOURS OR DOLLAR VALUE NOTE INTERIM BILL AMOUNT

Did you Know? The automatic retainer feature of the trust system can be used to pay the bill. If a client has money in trust and you are billing an interim fixed fee bill, you can have the system automatically reserve funds in trust to pay for the bill. This feature is activated if designated trust retainer funds exist. If the fixed fee ledger code has a fixed fee flag of "A" (allocation for interim fixed fee bills), then a timekeeper will be credited with cash receipts when payments are allocated to this bill.

PAYMENT OF INTERIM BILL

APPLY CREDIT TO INTERIM BILL

FINALIZE BATCH

INQUIRY

MATTER INQUIRY AR RELIEVED INTERIM BILLS VALUE STILL ACTIVE NET UNBILLED FEES STILL ACTIVE

MATTER STATISTICS NOTE VALUES IN INTERIM BILLS NOTE VALUE IN INTERIM BILLS COLLECTED

APPLICATION OF TIME TO INTERIM

APPLICATION BILL Applications to Interim Bills allows actual time and costs worked to be applied to an original interim bill, which has no time or costs behind it.   The time and costs do not have to be worked on the interim bill matter.  Any time and costs entries can be used from other matters and applied to the interim billing matter. Updates statistics and reports Relieves WIP Gives credit allocation to timekeepers

APPLICATION BILL – VIA BILL GENERATION

Application Bill field definitions Fixed Fee Matter This matter must have an interim bill invoice with an remaining balance to apply. Application Matter Enter a matter number that has unbilled fees or costs. Entering a matter number other than the fixed fee mater number (entered above) results in the transfer of interim fees or costs to the matter number entered.

Application Bill – Field Definitions Application Method (P/O/N) P – Proportional - The unbilled application values in the New column on the Date Range and Application grid is calculated proportionally amongst the outstanding fixed fee invoices. Can apply to fees or costs not both on the same bill O - Oldest first - The unbilled application values in the New column on the Date Range and Application grid is calculated according to the oldest invoices (the oldest invoices are applied first.). Can be run for fees only or costs only N – None - The New column on the Date Range and Application grid is not calculated at all. The user must enter the applications manually. Use this option when selecting "Both" in the Run For field. Can run for fees and costs at the same time

Application Bill – Field Definitions Use Most Recent Proforma Select this check box to use only the unbilled timecards on the most recent proforma. Leave this check box clear to use all unbilled timecards for this matter.

Application Bill – Field Definitions Run For Select one of the following option buttons: Select Fees to apply the applications to fees. Select Costs to apply the applications to costs. Select Both to apply interim bill balances to both fees and costs at the same time with one invoice number. Note: "Both" only works with the "N" Application Method. "Both" is disabled when "P" or "O" is selected as the Application Method.

Date Range and Application

Date Range and Application – Field Definitions Start/End Dates Enter the beginning and ending dates for either the fees or costs as designated in the Apply Fees or Costs field. Calculate button Calculates the unbilled amount to be applied. The Unbilled Amount to be Applied is displayed. This amount pertains to the amount available to be applied from the Interim Matter entered in the Batch and Matter Information tab.

Click Run 1 2 3

Report Manager Note it says 0 FIXED FEE APPLICATIONS PROCESSED NOT TRUE

REPORT MANAGER – Note it gets a bill number

Tables Impacted timecard cost ledger ledgdet history (3) ledgfee ledgcost The Application process does not reverse interim bills or any credits applied against the bills. Application generates a negative version of the Interim Bill and any credits against it, and - the application may only be for a portion of the Interim Fee. As with the Closing Bill, the time or cost entries are ‘billed’, and the ‘credits’ are re-applied. Any adjustments would have to be created before the start of the Application process. The LEDGER table does not have any reversed items for the interim bills. A new table (the LEDGDET) is now involved. The LEDGDET keeps track of the: • Application Type (AI for Application Invoice or AP for Application Payment) • Operator • The entry • Transaction • Through Dates • Billing Timekeeper • The FFEE lindex, and • The credit (against the FFEE) lindex

INQUIRY

MATTER INQUIRY NO AR ON THE MATTER AS A PAYMENT WAS APPLIED TO THE INTERIM BILL NOTE INTERIM BILL AMOUNT IS RELIEVED NOTE NET UNBILLED FEES AMOUNT IS RELIEVED

INVOICE DETAIL ORIGINAL INTERIM BILL APPLICATION BILL

ORIGINAL INTERIM BILL DETAIL

APPLICATION BILL

APPLICATION BILL LEDGER DETAIL

MATTER STATISTICS - CHANGES AMOUNT BILLED ORIGINAL VALUE AMOUNT BILLED ACTUAL VALUE FEES RECEIVED INTERIM BILLS – NEGATIVE AMOUNT MTD INTERIM BILLS – NO AMOUNT - YTD

TIMEKEPEER STATISTICS

STATISTICS NOTES In the Billing Inquiry Statistical window; the Interim Bills reflect Bills for work on matters where no time has been worked on the case. At this point, working timekeepers do not receive credit on any hours worked. NOTE: The amount reflected in the Interim Bills - YTD column will reflect all Interim Bills that have yet to have an 'Application' and/or ‘Closing Bill' performed.

STATISTICS NOTES The Interim Bills Collected is the amount paid by the client on the interim bill and defaults to the Billing Timekeeper from the matter level UNTIL an Application and/or a Closing Bill is performed. If an Interim Bill is processed in January, payment applied in February and application processed in March. The time/cost cards will be attached to the period the Interim Bill and payment were in, but the application will be in the current period.

Application through proforma edit The wip amount of the Proforma cannot be greater than the amount of the application or adjustments will be made and any WIP over the interim bill will be written off Exclude some wip from the Proforma if it is greater than the application amount or use exact amount billing.

CLOSING BILLS

CLOSING BILLS Closing bills can be generated for work on any type of matter. They update management reports and credit billed hours and costs to timekeepers. The closing bill process can automatically reverse any interim bills and re-apply the cash allocated to those interim bills. A closing bill cannot be generated if applications exist for the matter. Closing fixed fee bills can be run as many times as desired for the same matter.

Closing Bill Generation – Billing Manager – Proforma/Bill Generation –Fix Fee - Closing

Closing Generation Options – Key Fields Create Time and Cost Adjustments and Generate the Closing Bill - will create a bill update the ledger and mark all time/costs as billed. Create Time and Cost Adjustments and Print a Bill Template Proforma – uses bill format, but does not create a bill record. – like an info only proforma  

Bill Information Tab Bill Fees - select this box to include fees on the bill.  Bill Costs/Disbursements - select this box to include costs bill.  Reverse Interim Bills - if interim bills exist for the matter, they can be reversed at this time by choosing one of the following: Y - reverses all interim bills. B - reverses previous interim bills up to the amount of this closing bill. P - reverses paid bills only. N - does not reverse interim bills.   

Bill Information Tab Reversing interim bills allows any cash receipts applied to the interim bills to be applied to the final bill automatically. This is important if cash receipts are to be allocated to the working attorney. When cash receipts are reapplied, they follow the allocation priority rule on the ledger codes. The auto-allocation flag on the credit ledger code must be set to "Y" to have the payment reapplied automatically. If the flag is not set to Y the payment is reversed and says in unallocated.

MORE GENERATION OPTIONS Include only costs and time on the most recent proforma – Select if a proforma was generated and the timekeeper approved – leave unchecked to include all unbilled time.   Total Interim Bills - displays the total number of interim bills already existing on the matter.   Time/Cost Date Range: Start/End Dates - allows the user to specify the dates to be included on this bill. Enter an ending date; a beginning date is optional.   Calculate - calculates the current and billing values of time and costs. If adjustments to time and costs are necessary, enter the adjustments in the Fee and/or Cost Adjustments fields. The system calculates the total.  

Bill Generation Tab

Closing Bill Generation Closing Bill Amount - the closing bill amount displays. Bill Date - enter the date to print on the bill. Bill Template Code - enter the code of the template to use for the closing bill. Automatic Invoice Numbering - select this box to use automatic invoice numbering. If selected, the First Invoice Number field is unavailable.

Closing Bill Generation - Allocations   Proportionally by Working Timekeeper – allocates credits to the Working Timekeepers on the bill. Billing Timekeeper - allocate credits to the Billing Timekeeper. Supervising Timekeeper - allocates credits to the Supervising Timekeeper. Originating Timekeeper - allocates credits to the Originating Timekeeper.   Ledger Narrative - enter up to 4800 alphanumeric characters per line as a narrative description for the closing fixed fee bill. The description can print at the location determined by the template selected.   .

Additional Fields available - optional Sending Timekeeper - enter the ID for the sending timekeeper for this bill. If the parameter "Create ET Ledgdet Records" is set to "Y" in the control default table, this field is available.   Billing Coordinator - enter the ID for the billing coordinator for this bill. If the parameter "Create ET Ledgdet Records" is set to "Y" in the control default table, this field is enabled.

Closing Bill Generation

Click Run from First Tab

View Report Manager Report says 0 processed – NOT TRUE

Closing Bill With Adjustments Add adjustment amount

Activates Timecard Fee Adjustment Tabs Distribution Options: Proportionately to all Timekeepers with Unbilled Time If this option is selected, enter a start and end date as a date range for selecting unbilled time. You can also select the Use Timecards on the Most Recent Proforma check box to also select unbilled time. Any Given Timekeepers If you select this check box, a dialog box displays allowing you to allocate the adjustments to any given timekeeper. Billing Timekeeper If you select this check box the adjustments are allocated to the billing timekeeper. Proportionately to all Timekeepers with Billed and Unbilled Time If you select this check box the adjustments are allocated to all timekeepers with billed and unbilled time.

Timecard Fee Adjustment Tab1

Timecard Fee Adjustment Tab 2 Date Worked - enter the date of the fee adjustment. This date should be no later than the date of the last time entry being adjusted, or the cutoff date for the bill.   Print Hours Flag - select this box to print the adjusted hours on proformas or bills. Do not select this box to have the adjusted hours print only on management reports.   Ledger Code - enter the ledger code of the fee adjustment. This will default to the FEES ledger code   Activity Code - enter one of the activity codes, if desired.   User Defined Fields - enter codes in any required user-defined fields.   Timecard Narrative - describe the reason for the adjustment. Typical template design will print whatever is written and show the discount as a separate line item. If this field is left blank, the template will not show this as a separate line item, but will include the adjustment in the total amount.

Time Adjustment Tab 2

Cost Adjustments Date Worked - Enter the date of the cost adjustment. Timekeeper - Enter the initials of the timekeeper to whom you want to charge or credit this adjustment. Location - Enter the location code for this cost adjustment. Authorized/Tax - If your firm uses the Value-Added Tax feature, enter another tax code to be used for this cost entry. If the database is set up for Tax Codes, this field defaults to the matter's tax code for Costs. If the firm is not set up to use the Value Added Tax feature, enter up to 10 alphanumeric characters to record the person who authorized the cost. Entering a value in this field is optional if the database is not setup to use tax codes. Cost Code - Enter the appropriate cost code. Ledger Code - Enter the appropriate ledger code.

Cost Adjustment Field Definitions Summarize (Y/N) - Select this check box and costs with the same cost code display as a lump sum on the bill. Leave this check box clear and the cost displays as a separate item, even if there are other costs with the same cost code on the bill. Quantity - The quantity field is for display purposes only. Note: The system performs the calculation as follows: QUANTITY x RATE = AMOUNT. Rate - The rate field is for display purposes only. Amount - The amount field is for display purposes only. Cost Narrative - Enter up to 4800 characters as a narrative description of the adjustment.

Cost Adjustments

Table Implications timecard cost ledger history (3) ledgfee ledgcost The Closing Bill process reverses the interim bill(s) and any credits against those Interim bills. Then bills the time and/or cost entries (allowing you to adjust the totals if necessary). Then automatically re-applies the reversed credits (if the auto-allocation flag on the credit is set to Y). A critical point to be made about this process is that the ledger table has reversed items for the interim bills and/or payments (technically ledger.lzero = R) after the Closing Bill process is completed.

Inquiry

Before the Closing Bill Note the net unbilled fees reduced by the WIP Time Note Interim amount remains at original level

After Closing Bill – No Adjustments No Interim Bill Amount No Net Unbilled Fees

View Invoices – Including Reversed Original Bill reversed New Bill Generated

Interim Invoice with Payment

Stats with Payment

Inquiry With Closing Bill with Adjustments and reverse payment

Invoice Detail Reversed Bill and credit New Bill with Applied Credit

Stats with closing bill Note cost write up Note original valued to actual value on fees billed for amount of the adjustment Interim fields are all 0.00 Fees received updated

Reversals If user generates application bill, and then wants to generate a closing bill, ALL of the application bills need to be reversed via Bill Reversal. There is an option in the closing bill to reverse interim bills if the user activates this option the applications applied will also automatically be reversed.

Using an Interim Bill Against Actual WIP 1. Edit your proforma as discussed in Proforma Modify. 2. . Using a Negative Amount, create an Interim Fee for the amount you want to reduce the bill. IE, your WIP is for $3,000 and you are showing $5,000 of Interim available, you can enter any amount up to the balance of $5,000, although it’s recommended not to produce a negative bill and only use a maximum of $3,000. This applies the Interim bill against the WIP, applying what the client has already paid you in advance to the WIP that you are now billing.

Table Implications timecard cost ledger history (3) ledgfee ledgcost The Negative Interim Bill process does not reverse the interim bill(s) or any credits against those bills. The Negative Interim process uses a feature in Proforma Edit, which allows you to generate a negative interim bill during the billing process. You can adjust the totals, if necessary, and then generate the bill. If the Interim bill exactly equals the fees and costs billed, use the zero-PAY technique6 to apply the positive and negative debits to each other. In this technique, the original Interim bills do not have any relationship to the Negative Interim or the billed timecards and costs.

c) Say you have generated an application bill, does this mean that there is no more need to generate a closing bill if the firm so desires? REPLY: correct, you don't have to do a closing bill.

WRITE OFFS – DO NOT PROCESS ` Writing off an interim bill does not completely affect the system the way it needs to in order to completely remove the interim bill from the system. To write off the interim bill or part of it you must reverse the interim bill and rebill for a lower value if required. This is the only way to relieve the value of the net unbilled fees. Mask to the find me fix me will highlight in the GL if this happens

THE TEHCNICAL BIT - TABLES

THE TECHNICAL BIT - TABLES

Questions??????

Thank you for Attending For more information: The knowledgebase – kb.elite.com F1 – help button form the interim bills pages Please Contact either of us: JOSELYNN CURTIS – PROJECT MANAGER JOSELYNN.CURTIS@THOMSONREUTERS.COM MATTHEW JAMMA – APPLICATION CONSULTANT MATTHEW.JAMMA@THOMSONREUTERS.COM