When adding a cost transaction using the Cost Entry program, Tabs3 first checks to see if a cost rate table has been created for the client and then checks to see if a rate has been assigned for that tcode or expense code. If a rate has been assigned for that tcode or expense code, Tabs3 uses that rate as the default billing rate. If a rate has not been assigned for that tcode or expense code or if a cost rate table is not found for the client, Tabs3 uses the rate specified in the Transaction Code file. If no rate is specified in the Transaction Code file for that tcode or expense code, a rate of 0.00 is used.

For example, let's say your firm generally charges $0.25 per photocopy. This rate is specified in the Transaction Code file and is used each time a cost entry is created with the photocopy tcode (provided a cost rate table does not exist for the client). However, let's say you have one client you charge only $0.15 per photocopy. Therefore, you can create a cost rate table for the client whose photocopy rate is $0.15. When a photocopy cost transaction is entered for this client, a rate of $0.15 per copy will be used instead of the firm wide $0.25.

Creation of cost rate tables is entirely optional. You can set up a cost rate table for one client, several clients or all clients. You can add rates for any or all cost tcodes or expense codes you will use when working with the client. The cost rate table can contain unlimited cost tcodes or expense codes with one rate per tcode/expense code. If a tcode's or expense code's rate changes, a new rate can be specified along with a cut-off date that indicates which transactions entered from this point forward will use the new rate

When defining cost rate tables, you can

  1. define a new cost rate table from scratch (custom);
  2. copy an existing cost rate table as a basis for a new rate table (use existing table); or
  3. share an existing cost rate table (shared).

The difference between copying and sharing a cost rate table is how the tables are stored. When sharing a cost rate table, Tabs3 simply stores a "pointer" to the shared cost rate table. Therefore, if you make changes to a cost rate table that is used as a shared rate table, then all other clients who use the same shared rate table will also reflect the changes.

The Change Client Options program includes an option that allows you to automatically clear the cost rate tables for a range of clients. Clearing a cost rate table consists of deleting all tcodes/expense codes from the table. The Change Client Options program also allows you to globally change the cost rate table for a range or group of clients to a shared cost rate table.

Note: When using cost rate tables for clients with multiple matters, you can set up a separate cost rate table for each matter or you can assign a shared cost rate table. Allowing separate rate tables gives you the flexibility of using different billing rates for each matter. However, it is easier to maintain shared cost rate tables.

Note: Keep in mind that changing or deleting a client's cost rate table that is shared by other clients affects the rates for the shared clients as well. Thus, you may want to print a Client Rate Report before changing or deleting a rate table to confirm which clients will be affected by the change. Changing the New Rate field and the Effective Date of New Rate field for a client with a shared rate table changes these values for any clients who share that rate table.

Note: The Task Based Billing check box in the client file cannot be changed if a cost rate table is defined for the client. You must clear all rates for the existing cost rate table before you will be allowed to change the Task Based Billing status.

Note: The cost rate table is ignored when entering cost tcodes in the Fee Entry window. Instead, the standard method for determining How Tabs3 Selects the Default Billing Rate will be used to determine the rate.

Tabs3 Billing Remote Note: When using Tabs3 Biling Remote, you may want to recreate the Tabs3 Billing Remote Validation Files if you add, change, or delete any cost rate tables.