Spotlight: Fee Compensation Rules

August 2022    Tags: Fees, Reports, Tabs3 Billing

Tabs3 Billing includes the flexibility to create rules that designate how payments are allocated to various timekeepers and to the firm. With Fee Compensation Rules, you have the ability to allocate payments for fees to the firm as well as to multiple originating, primary, and secondary timekeepers. Additionally, reporting features in Tabs3 Billing let you see allocations based on your pre-defined compensation rules.

• When creating Fee Compensation Rules, rules can be based on a percentage of receipts from:
• All working timekeepers
• Selected working timekeepers
• All working timekeepers assigned to a specific timekeeper level (i.e., partners, paralegals, etc.)
• Statements within a specified date range
• Accumulated receipts within an amount range

Once a payment has been allocated based on the defined rules, any remainder is distributed amongst the working timekeepers on a pro-rated basis.

Each matter can have a unique Fee Compensation Rules Table or can share a table with other matters. A shared table makes it easier to update multiple matters that all use the same allocation rules.

The Receipt Allocation Report and the Allocated Payments Report can include fee compensation information. Additionally, the Top Client Report can optionally use fee compensation amounts for fees paid.

To learn more about how Fee Compensation Rules can improve your receipt allocation reporting, open the Tabs3 Billing Help (press F1) and enter “Fee Compensation” on the Index tab.