Each fee transaction has a Rate Code field. The Rate Code determines the default billing rate. The Rate Code for new fee transactions defaults to "0" with exceptions described in the following note.

Note: When using a fee transaction code in the Fee file, the Rate Code will default to zero even if a rate or amount has been specified for the transaction code. If you want to use the default rate or amount from the transaction code file, rather than the client's default rate, you must manually change the Rate Code field or use cost transaction codes instead of fee transaction codes as described in the following.

When performing value billing, you normally want a fee transaction to default to a predefined amount. Because of this, if you have certain fee transactions that will always use a specific rate or amount, set them up as cost transaction codes. If you use a cost transaction code in the Fee file (as opposed to a fee transaction code), the Rate Code will default to "7" if a rate has been specified in the transaction code file or "8" if an amount (and a rate of "0.00") has been specified in the transaction code file. (See also: Value Billing)

Rate Code 0: When a fee transaction is entered with a Rate Code of "0," the following steps are used by Tabs3 to determine the default billing rate:

  1. Is there a fee rate table for the client? If so, does the timekeeper that was entered for the fee transaction have a rate assigned in the fee rate table? If a rate is found in the fee rate table for the timekeeper, then that rate is used. If a rate is not found, then Tabs3 goes to step 2.
  2. What is entered for the Timekeeper Level Type field on the Rates tab of the Client file?
     

    If the Timekeeper Level Type field is set to Rate, then the assigned rate for that timekeeper's level is used. If a rate of "0.00" is entered, then the Billing Rate Code from the Client file is used to determine the default billing rate (as explained in step 3).

    If the Timekeeper Level Type field is set to Code, then the assigned rate code for that timekeeper's level is used. A code of "1" thru "6" indicates that the corresponding rate for the timekeeper from the timekeeper file will be used (i.e., code "1" refers to rate #1, code "2" refers to rate #2, etc.). If the code is "7," then the rate will be taken from the transaction code file. If the code is "8," then the rate will be calculated from the amount assigned in the transaction code file. If the code is "9," then the rate from the Hourly Rate field in the Client file will be used. If the code is "0," then the Billing Rate Code from the Client file will be used to determine the default billing rate (as explained in step 3).

    		If the Timekeeper Level Type field is set to None, then Tabs3 goes to step 3.
  3. If a default billing rate is not established in step 1 or 2, then Tabs3 checks the client's Billing Rate Code assigned on the Rates tab of the Client file. If the client's Billing Rate Code is "0," this indicates a flat fee client and the default rate #1 from the timekeeper file is used. If the client's Billing Rate Code is "1 thru 6," then the corresponding rate from the timekeeper file will be used. If the client's Billing Rate Code is "7," then the rate will be taken from the Rate field in the transaction code file. If the client's Billing Rate Code is "8," then the rate will be calculated from the amount assigned in the transaction code file. If the client's Billing Rate Code is "9," then the rate from the Hourly Rate field in the Client file will be used.

Rate Code 1-6: When a fee transaction is entered with a Rate Code of "1" thru "6", the corresponding Rate from the timekeeper file will be used.

Rate Code 7: When a fee transaction is entered with a Rate Code of "7", the Rate will be taken from the transaction code file.

Rate Code 8: When a fee transaction is entered with a Rate Code of "8", the Rate will be calculated from the amount assigned in the transaction code file.

Rate Code 9: When a fee transaction is entered with a Rate Code of "9", the rate from the Hourly Rate field in the Client file will be used.

In Summary

Remember, you can always overwrite the default billing rate when you are entering a fee transaction. This is done by entering a Rate Code other than "0" in the Fee file or by entering the desired Rate in place of the default Rate displayed on the screen.

We recommend using the Timekeeper Rates method whenever possible. This method is the easiest to maintain and requires no additional data entry.

Keep in mind that you can set up clients using any one of the methods available and still achieve your goal of having Tabs3 use the correct default billing rate for each client. You don't necessarily have to understand how each method works. The point is to be able to select a method that works for you and your clients. Many of these methods were designed to cater to "exceptions" to the rule. Each client can use a different method. The fee rate table method is probably the easiest to understand and use, and is also the most flexible. However, additional data entry (setting up the fee rate table) is required for each client.

Firms with multiple matters per client will often use the fee rate table method for those clients. For example, let's say you have an insurance company as a client with hundreds of matters. All work for all matters for this client use the same rate structure. In this situation, set up a fee rate table for the first matter and set up the second matter to share the first matter's rate table. All subsequent matters will default to a shared rate table using the first matter as the shared rate table. Using this structure has the added benefit of making it extremely easy to change the rate structure for the client--you simply change the rates for the first matter.