Example #1

Let's say you have billed a client $150 in fees: $100 billed by timekeeper #1 and $50 billed by timekeeper #2. The following month you bill the client an additional $50 by timekeeper #2. The client now owes $200 ($100 of which has been billed by timekeeper #1 and $100 by timekeeper #2). The client sends a payment for $100, you enter the payment and run the Receipt Allocation Report. If the Receipt Allocation by Invoice option is cleared, $50 will apply to timekeeper #1 and $50 will apply to timekeeper #2. However, if this option is selected, $66.67 will apply to timekeeper #1 and $33.33 will apply to timekeeper #2.

Example #2

Using the same example, let's say the firm allocates 10% of all fees received to the originating timekeeper. If the Receipt Allocation by Invoice option is cleared, $10 will apply to the originating timekeeper, $45 will apply to timekeeper #1 and $45 will apply to timekeeper #2. However, if this option is selected, $10 will apply to the originating timekeeper, $60 will apply to timekeeper #1 and $30 will apply to timekeeper #2.

Example #3

Let's say you have your photocopy transaction codes set up as an expense with a Cost Type of 1. All other expenses are set up using a Cost Type of 0 (zero). You bill your client $50 in other expenses. The next month, you bill the same client $50 again, this invoice consisting of $40 in other expenses and $10 in photocopy expenses. The client now owes $100 in expenses ($90 of which is categorized as other expenses and $10 as photocopy expenses). The client stops by and pays $50. You enter the payment and run the Receipt Allocation Report. If the Receipt Allocation by Invoice option is cleared, $45 will apply to other expenses and $5 will apply to photocopy expenses. However, if this option is selected, the entire $50 will apply to the first invoice (i.e., $50 to other expenses).