Timekeeper Rate Share

The Orion Rate Share feature is another form of split billing and is available in Bill Prep (Tools, Rate Share). Traditional Split Billing (Tools, Split Billing) allows multiple parties to pay a percentage of the total bill amount. The Reallocate Bill feature (Tools, Reallocate Bill) allows multiple parties to pay a percentage of the bill time. The Rate Share feature allows multiple parties to each pay the full amount of Bill Time but at a rate agreed upon by each party. An example of this is a Client who has insurance coverage. They engage the Firm for representation and the Firm’s Rate is higher than what the Insurance Carrier will pay. The Client agrees to pay the difference in the rate the Firm charges and the Rate the Insurance Carrier will pay. Each hour worked is paid by each party but it is calculated at a different rate.

The Rate Share feature requires the same setup as traditional split billing - all time, etc. is entered under a Source Matter and then “shared” to two or more “Target” Matters. As with traditional split billing, the Source Matter cannot also be a Target Matter. Time is entered under the Source Matter and in Bill Prep you choose the transactions to be included in the “Rate Share” function. Each fee transaction is copied to the Target Matters with the same Bill Hours as contained on the Source transaction and the Bill Amount is recalculated using the Rate Set assigned to the Target Matters. Original Time and Dollars does not copy to the Target but instead stays on the Source Matter. The transactions on the Source Matter are flagged as invoiced and the Bill Time and Bill Amount changed to $0.00.

Setting Up for Rate Share

When you need to use the Rate Share feature you must set up a minimum of three Matters. Although not required, we recommend all Matters be set up under the same Client number.  The Source Matter will be used to enter all time and expenses. You need to set up a Target Matter for each entity involved in the Rate Share. We recommend setting the Source Matter up with a Rate Set equal to the full amount you will be charging for each hour. For example, if your goal is to bill and get paid $500.00 an hour for Partners, $280.00 for Associates and $125.00 for Paralegals you will want to assign a Rate Set using those amounts. The Target Matters need to be set up with a Rate Set equal to what each “Target” has agreed to pay per hour. You will also want to assign a normal invoice style (no discounts shown, no split billing) to the Target Matters.

Make sure your Timekeepers know to enter their time under the Source Matter. Time entered under the Target Matters can always be moved to the Source Matter in Bill Prep but it is easier on the Billing Department if they do not have to do this.

Using the Rate Share Feature

Once Prebills have been printed and you have performed any necessary write ups/down on the transactions under the Source Matter, you are ready to use the Rate Share feature. If you are not including all transactions in the Rate Share, highlight the ones to be included. If all are being included you do not need to highlight anything. From within Bill Prep on the Source Matter, choose Tools, Rate Share. Select a Fee option and an Expense option. Note that Client Advances (CA codes) will not be included in the Rate Share procedure. You will need to use the traditional split billing process to handle Client Advances or distribute them accordingly in the Voucher. Add the Matters you are sending the transactions to for the Rate Share (note the Source Matter cannot be a Target Matter). You will notice you do not enter a percentage as you do with traditional split billing. To save your settings for future billings, click the SAVE AS DEFAULTS Button. Click the RATE SHARE Button and Orion will perform the Rate Share Process. All transactions on the Source Matter included in the Rate Share will be marked as billed and the Bill Time and Bill Amount set to zero. The transactions created on the Target Matters will be set to 0.00 for original hours and time but will carry the Bill Time from the Source Matter. The Bill Amount will be calculated using the Rate Set assigned to the Target Matter.

Expenses are shared by copying each expense transaction (original and bill values) to each Target Matter.

The system does allow you to reverse a Rate Share process as long as none of the transactions included in the Rate Share have been billed on the Target Matters. In Bill Prep, choose Tools, Reverse Split/Reallocate/Share Billing and then enter the Client-Matter number of the Source Matter. Locate and highlight the “Share” to be reversed and click the REVERSE Button.

For a visual idea of what happens during the Rate Share process, see the screen shots below.  The first view shows the time as it was entered on the Source Matter. The Source Matter was set up with a Rate Set of $500.00 for Partners, $280.00 for Associates and $125.00 for Paralegals. The second view shows all the transactions after the Rate Share. Target 1 was set up with a Rate set of $300.00 for Partners, $160.00 for Associates and $75.00 for Paralegals.  Target 2 was set up with a Rate Set of $200.00 for Partners, $120.00 for Associates and $50.00 for Paralegals.

Transactions Before Rate Share

Transactions After Rate Share

The Rate Share feature allows you to bill the same hour worked to multiple parties without duplicating your time entry and overstating actual hours worked for purposes of productivity reports. The Billed Hours will be overstated but Bill Amount should be true.