Feature Article: Fee Compensation Rules

November 2021    Tags: , ,

Making sure everyone receives their share of compensation for a case can be time consuming. Tabs3 Billing helps make it easier via fee compensation rules!

Fee compensation rules provide the ability to allocate a percentage of a client’s fee receipts to the firm or to a specific primary, secondary, or originating timekeeper. You can allocate receipts from all timekeepers, specific timekeepers, or timekeeper levels (e.g., Associate, Paralegal, etc.). You can also define how to allocate receipts based on statement date or amounts.

To set up fee compensation rules

  1. From the Quick Launch, search for and select “Client Information.”
  2. From the Setup tab, click the Fee Compensation Rules button.
  3. In the Fee Compensation Rules Table window, click the New button.
  4. Enter the desired rule information and click OK.
  5. Press Ctrl+S.

The rules have incredible flexibility. Each table can include multiple rules. You can create rules for multiple originating, primary, and secondary timekeepers as well as multiple rules for the same timekeeper. Each rule can be moved up or down in the table to define the order of compensation. For example, if you want the firm to receive compensation before a timekeeper receives compensation, the firm rule must be displayed first. Once a payment has been allocated based on all defined rules, any remainder is distributed amongst the working timekeepers on a pro-rated basis.

  • Need to use the same compensation rules for several clients? Fee Compensation Rules Tables can be shared to save time recreating the same rules for multiple clients.
  • Unsure if any rules have been set up, or how receipts are currently being distributed? The Fee Compensation Rules Report (from the Quick Launch, search for and select “Fee Compensation Rules Report”) allows you to print a report of fee compensation rules grouped by client or timekeeper.
  • Want to see how receipts are affected by the rules? Fee compensation amounts can be included in the Allocated Payments Report, or Receipt Allocation Report. This allows you to easily see how receipts are being allocated throughout the firm.

Examples of fee compensation rules can be found in the Tabs3 Billing Help topic “Examples of Fee Compensation Rules.”

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