A Courtesy Discount can be given to a client. The discount is calculated at the time the statement is processed. Discounts can be given as a percentage of fees billed or as a specified amount. The discount is given at the time the statement is run. Only the Amount field is adjusted; the Hours Worked, Hours to Bill, and Rate fields are not adjusted. You can set up clients to receive the discount on each statement processed, or receive the discount only once.

Note: Courtesy Discounts apply toward fees being currently billed and do not apply toward previous balances.

Courtesy Discounts are proportionately deducted from each timekeeper's fee amounts when the statement is updated. The amount of each fee transaction is reduced proportionally so that the total of all fee transactions on the statement adds up to the total fee amount minus the courtesy discount.

Example: A client has $1,000 in current work, consisting of $600 billed by Timekeeper 1 and $400 billed by Timekeeper 2. If a ten percent courtesy discount is issued for the client, each of Timekeeper 1’s billable transactions will be proportionately adjusted in order to reduce Timekeeper 1’s billed amount by $60. Similarly, each of Timekeeper 2’s billable transactions will be proportionately adjusted in order to reduce Timekeeper 2’s billed amount by $40. In this example, the same discounts will occur if the client is issued a $100 courtesy discount as opposed to a ten percent discount.

The Billing Options tab in the Client file is used to set up a client to receive a courtesy discount. There are three fields that are available:

Discount Type

Percent/Amount

Change Discount Type to None after statement updated

The amount or percentage being discounted is printed on the Detail Work-In-Process Report, the Summary Work-In-Process Report and the Detail Client List Report. Any courtesy discounts that are billed and updated are treated as write-downs. Courtesy discounts are shown separate from write-downs on the Write-Up/Write-Down Report, Category Productivity Report, and Timekeeper Productivity Report. Courtesy discounts are combined with the fee write-down on the Client Ledger Report and the Client Productivity Report. Courtesy discounts can be shown as a separate column or combined with the net write-up/write-down column on the Client Analysis Report.

If desired, you can edit the "Courtesy Discount" terminology on Line 10 of the Terminology tab in Statement Customization. Using Statement Customization, courtesy discounts can be configured to print in one of three positions on a statement.

If you use a fee threshold when running statements, the courtesy discount will be included when determining if a statement will be run. Courtesy discounts do not apply to Type 6 transactions for progress billing clients.

The amount of the archived transaction will include the courtesy discount (prorated).

Courtesy discounts are included on a statement regardless of whether the Statement Template is assigned a Statement Type of statement format or invoice format.

See also:   Knowledge Base Article R10772 - Adjusting Work-In-Process