Overview
Split fee billing allows a single matter bill to be split between multiple parties for reimbursement. Split fee billing is only supported for matter level billing. Billing parties (aka billing contacts) are listed from your Matter > Connections tab page. You can create as many billing contacts as you need by selecting the "Billing Contact" checkbox when adding contact connections to a matter. Note: Member connections cannot be added as billing contacts, only connections that are contacts.
ZenCase provides 4 split fee billing arrangement options:
Let's take a closer look at each billing arrangement for more detail.
Total Percentage Split Fee Bill Arrangement
The Total Percentage split fee bill arrangement option allows multiple billing parties to pay a percentage portion of the bill which must add up to 100% of the total bill.
For example, if you have Party A which agreed to pay 75% of the total bill and Party B which agreed to pay 25% of the total bill, then you would choose the "Total Percentage" split fee billing arrangement type.
How To Setup Total Percentage Bill Arrangement For A Matter
Go to the Matters list page by clicking on "Matters" from the left navigation bar.
Click on a matter name in the table to view a matter details.
On the Matter details page, click the "Settings" tab.
Click on the left sidebar navigation button for "Billing Arrangements".
Click "Add Billing Arrangement".
Enter a name for the billing arrangement.
Click "Save"
You should be redirected to the "Edit Billing Arrangement" page.
Click "Arrangement Type" dropdown and select "Total Percentage".
Check the "Apply to Pre-Bills by Default?" option if you want this billing arrangement to be the default option when generating pre-bills for the matter.
Note: By choosing this option, you will not be allowed to change the billing arrangement after generating a pre-bill. Leaving this option blank will force a user to select the billing arrangement type when generating pre-bills from the Unbilled page.
Check the "Show Notes on Invoice?" option to show the actual notes in the Split Billing Summary section on the pre-bill and final invoice PDF.
You will see a list of billing parties, starting with 1.
Select a "Billing Party" from the dropdown.
Note: All contact connections that are marked as a "billing contact" are considered billing parties. Member connections cannot be set as a "billing contact".
Select "Billing Address"
Set the percentage amount as an integer number. For example: 75%, would be "75".
Enter a note as needed.
Check the "Remainder" box to set the billing party as the person to receive the remainder left over pennies due to rounding calculations.
Click "Add Billing Party" to add more billing parties and repeat steps above.
Click "Save" to save billing arrangement.
Congratulations! You have successfully created a total percentage split fee billing arrangement which can now be applied to pre-bills and final invoices.
Important Note: All of the billing parties percentages must add up to 100% when setting percentage values for each billing party.
Total Amount Split Fee Bill Arrangement
The Total Amount split fee bill arrangement option allows multiple billing parties to pay a fixed amount portion of the bill which must add up to 100% of the total bill.
For example, if you have Party A which agreed to pay up to the first $1000 of the total bill, Party B which agreed to pay the second $500 of the total bill, and Party C which agreed to pay the remainder of the total bill, then you would choose the "Total Amount" split fee billing arrangement type.
How To Setup Total Amount Bill Arrangement For A Matter
Go to the Matters list page by clicking on "Matters" from the left navigation bar.
Click on a matter name in the table to view a matter details.
On the Matter details page, click the "Settings" tab.
Click on the left sidebar navigation button for "Billing Arrangements".
Click "Add Billing Arrangement".
Enter a name for the billing arrangement.
Click "Save"
You should be redirected to the "Edit Billing Arrangement" page.
Click "Arrangement Type" dropdown and select "Total Amount".
Check the "Apply to Pre-Bills by Default?" option if you want this billing arrangement to be the default option when generating pre-bills for the matter.
Note: By choosing this option, you will not be allowed to change the billing arrangement after generating a pre-bill. Leaving this option blank will force a user to select the billing arrangement type when generating pre-bills from the Unbilled page.
Check the "Show Notes on Invoice?" option to show the actual notes in the Split Billing Summary section on the pre-bill and final invoice PDF.
You will see a list of billing parties, starting with 1.
Select a "Billing Party" from the dropdown.
Note: All contact connections that are marked as a "billing contact" are considered billing parties. Member connections cannot be set as a "billing contact".
Select "Billing Address"
Set the "up to" fixed amount as an integer or decimal number. For example: $1000, would be "1000" or "1000.00".
Enter a note as needed.
Check the "Remainder" box to set the billing party as the person to receive the remainder amount due of the bill if applicable.
Click "Add Billing Party" to add more billing parties and repeat steps above.
You can arrange the order of priority for which each billing party pays their set up to amount.
Move your mouse over the billing party's row and you will see a two horizontal line icon on the far right side of the row. Use the two horizontal line icon to click and drag the row up or down in priority.
Once set, the first billing party in the list will be assigned their amount and any remainder will be assigned to the next billing party in the list.
Click "Save" to save billing arrangement.
Congratulations! You have successfully created a total amount split fee billing arrangement which can now be applied to pre-bills and final invoices.
Fee/Expense Percentage Split Fee Bill Arrangement
The Fee/Expense Percentage split fee bill arrangement option allows multiple billing parties to pay a percentage directly to fees and/or directly to expenses portion of the bill which must add up to 100% of the total bill.
For example, if you have Party A which agreed to pay 50% of all fees of the total bill and Party B which agreed to pay 50% of all fees and 100% of all expenses of the total bill, then you would choose the "Fee/Expense Percentage" split fee billing arrangement type.
How To Setup Fee/Expense Percentage Bill Arrangement For A Matter
Go to the Matters list page by clicking on "Matters" from the left navigation bar.
Click on a matter name in the table to view a matter details.
On the Matter details page, click the "Settings" tab.
Click on the left sidebar navigation button for "Billing Arrangements".
Click "Add Billing Arrangement".
Enter a name for the billing arrangement.
Click "Save"
You should be redirected to the "Edit Billing Arrangement" page.
Click "Arrangement Type" dropdown and select "Fee/Expense Percentage".
Check the "Apply to Pre-Bills by Default?" option if you want this billing arrangement to be the default option when generating pre-bills for the matter.
Note: By choosing this option, you will not be allowed to change the billing arrangement after generating a pre-bill. Leaving this option blank will force a user to select the billing arrangement type when generating pre-bills from the Unbilled page.
Check the "Show Notes on Invoice?" option to show the actual notes in the Split Billing Summary section on the pre-bill and final invoice PDF.
You will see a list of billing parties, starting with 1.
Select a "Billing Party" from the dropdown.
Note: All contact connections that are marked as a "billing contact" are considered billing parties. Member connections cannot be set as a "billing contact".
Select "Billing Address"
Set the fee percentage amount as an integer number. For example: 50%, would be "50" of all fees. Fees include all fixed fees and time entries.
Set the expense percentage amount as an integer number. For example: 100%, would be "100" of all expenses.
Enter a note as needed.
Check the "Remainder" box to set the billing party as the person to receive the remainder left over pennies due to rounding calculations.
Click "Add Billing Party" to add more billing parties and repeat steps above.
Click "Save" to save billing arrangement.
Congratulations! You have successfully created a total percentage split fee billing arrangement which can now be applied to pre-bills and final invoices.
Important Note: All of the billing parties percentages must add up to 100% when setting percentage values for each billing party.
Fee/Expense Amount Split Fee Bill Arrangement
The Fee/Expense Amount split fee bill arrangement option allows multiple billing parties to pay a fixed fee amount portion and/or a fixed expense amount portion of the bill which must add up to 100% of the total bill.
For example, if you have Party A which agreed to pay up to the first $500 of all fees of the total bill, Party B which agreed to pay up to the second $500 of all fees and $250 of all expenses of the total bill, and Party C which agreed to pay the remainder of the total bill, then you would choose the "Fee/Expense Amount" split fee billing arrangement type.
How To Setup Fee/Expense Amount Bill Arrangement For A Matter
Go to the Matters list page by clicking on "Matters" from the left navigation bar.
Click on a matter name in the table to view a matter details.
On the Matter details page, click the "Settings" tab.
Click on the left sidebar navigation button for "Billing Arrangements".
Click "Add Billing Arrangement".
Enter a name for the billing arrangement.
Click "Save"
You should be redirected to the "Edit Billing Arrangement" page.
Click "Arrangement Type" dropdown and select "Fee/Expense Amount".
Check the "Apply to Pre-Bills by Default?" option if you want this billing arrangement to be the default option when generating pre-bills for the matter.
Note: By choosing this option, you will not be allowed to change the billing arrangement after generating a pre-bill. Leaving this option blank will force a user to select the billing arrangement type when generating pre-bills from the Unbilled page.
Check the "Show Notes on Invoice?" option to show the actual notes in the Split Billing Summary section on the pre-bill and final invoice PDF.
You will see a list of billing parties, starting with 1.
Select a "Billing Party" from the dropdown.
Note: All contact connections that are marked as a "billing contact" are considered billing parties. Member connections cannot be set as a "billing contact".
Select "Billing Address"
Set the "up to" fixed fee amount as an integer or decimal number. For example: $500, would be "500" or "500.00".
Set the "up to" fixed expense amount as an integer or decimal number. For example: $250, would be "250" or "250.00".
Enter a note as needed.
Check the "Remainder" box to set the billing party as the person to receive the remainder amount due of the bill if applicable.
Click "Add Billing Party" to add more billing parties and repeat steps above.
You can arrange the order of priority for which each billing party pays their set up to amount.
Move your mouse over the billing party's row and you will see a two horizontal line icon on the far right side of the row. Use the two horizontal line icon to click and drag the row up or down in priority.
Once set, the first billing party in the list will be assigned their amount and any remainder will be assigned to the next billing party in the list.
Click "Save" to save billing arrangement.
Congratulations! You have successfully created a total amount split fee billing arrangement which can now be applied to pre-bills and final invoices.
What Is Remainder?
The "Remainder" option when setting up a billing arrangement will serve different purposes for the different billing arrangement types.
Percentage Billing Arrangement Remainder
Here is an example of "Remainder" when using fee/expense percentage split fee arrangement. Let's say that Party A agreed to pay 50% of all fees of the total bill and is selected to pay the remainder of the bill. Then Party B agreed to pay 50% of all fees of the total bill and 100% of all expenses of the total bill.
The invoice has 3 fees which total to $1554.87 for Pre-Bill #10018, then 50% of all fees would be $777.435. We must round to two decimal places for currency, so what happens to the extra penny?
Party A will be expected to pay $777.44 and will receive the remainder $0.01 after splitting fees 50% including the extra penny due to rounding to two decimal places. Party B will be expected to pay $777.43 after splitting the fees 50%. Both parties should total $1554.87 for all fees for the bill.
Amount Billing Arrangement Remainder
Here is an example of "Remainder" when using total amount split fee arrangement. Let's say that Party A agreed to pay up to $1000 of the total bill. Then Party B agreed to pay up to $2000 of the total bill and is selected to pay the remainder of the bill.
The invoice has 3 charges which total to $3258.98 for Pre-Bill #10018.
Party A will be expected to pay $1000.00 of the total bill. Party B will be expected to pay $2000 plus the remainder $258.98 of the total bill which equals $2258.98. Both parties should total $3258.98 for the bill.
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