Example 1 - Main Client is Also a Split Matter

Let's say 60% of the fees for one of your client's cases are being paid by a third party. The remaining 40% of the fees are being paid by your client. 

In this example, your client is both the main client and a split matter. The third party is also a split matter. To configure split billing in this example, you would create client records for both your client (100.00) and the third party (101.00). Once the records are created, you would then open the Client Information program for client 100.00, click the Split Billing tab, and add clients 100.00 and 101.00 to the Split Billing Information section (see Adding a Split Matter). When adding the split matters, you would assign 40% of fees to client 100.00 and 60% to client 101.00.

Now let's say client 100.00 has one fee entry this month with 2 hours at $250 per hour for a total of $500. When you run Perform Split Billing, the original $500 fee will be removed from client 100.00 and replaced with one for $200 (40%) for client 100.00 and one for $300 (60%) for client 101.00.

Example 2a - Main Client is Not a Split Matter, Split both Hours and Amount

Let's say you have main client 700.00 and are splitting fees 50/50 between 700.01 and 700.02. You would add 700.01 and 700.02 as split matters to the Split Billing tab of client 700.00, with each receiving 50% of fees. All three matters have the same fee rate, so you configure the main client to Split both Hours and Amount.

This month there is a fee transaction with 1 hour entered for main client 700.00 using a $300 billing rate. If you run Perform Split Billing, a fee transaction with .5 hours for the amount of $150 each (i.e., 50% of $300 per hour) with the same description will be created for both 700.01 and 700.02. The original $300 transaction for client 700.00 will then be deleted automatically after being split.

Example 2b - Main Client is Not a Split Matter, Split Hours and then Calculate Amount

Similar to Example 2a above, let's say you have main client 700.00 and are splitting fees 50/50 between 700.01 and 700.02. You would add 700.01 and 700.02 as split matters to the Split Billing tab of client 700.00, with each receiving 50% of fees. However, in this example, matters 700.01 and 700.02 have rates of $200 and $250 respectively, so you configure the main client to Split Hours and then calculate Amount.

This month there is a fee transaction with 1 hour entered for main client 700.00 using a $300 billing rate. If you run Perform Split Billing, a fee transaction with .5 hours and the same description will be created for both split matters 700.01 and 700.02. However, client 700.01's transaction will have an amount of $100 (i.e., .5 hours @ $200 per hour) and client 700.02's transaction will have an amount of $125 (i.e., .5 hours @ $250 per hour). The original $300 transaction for client 700.00 will then be deleted automatically after being split.

Example 3 - Split Units and then calculate Amount

Let's say two clients have decided to split the costs for a particular case 50/50. Costs are entered on client 800.00 (the main client) with 800.00 and 850.00 each being billed 50% as split matters. In this case, client 850.00 has negotiated a lower rate for certain costs, and a cost rate table has been defined for the lower rate. Therefore, you would configure the main client to Split Units and then calculate Amount.

When you run Perform Split Billing, any costs that include units will have the units split and the amounts calculated based on the split matter's cost rate table. If no cost rate table is present, the tcode rate will be used instead. Costs with zero units or a fixed amount specified will be split by the amount instead.

See also:   Split Billing Overview
  Split Billing Notes
  Split Billing Report
  Perform Split Billing
  Adding, Changing, or Deleting a Split Matter
  Undo Split Billing
  Methods of Billing