Collection by Timekeeper
 

Purpose of the report: To compute earned fee for each Timekeeper in a given date range.  This report can be used for a variety of needs: Productivity measurement; facilitates apportion fee allocation to timekeepers by work/collection activities; distribution mechanism for improved cash flow for outside counsel.

Challenges of Manual Calculations: If you attempt to do these calculations manually, you are likely to encounter following challenges:

  • If the invoice includes a discount, it would need to be allocated to individual timekeepers for accurate calculations.
  • Once the invoice is paid, allocation will begin from liabilities and costs. Then, fees amounts would be considered paid. This gets very complicated if invoices are paid in multiple payments over a period of time.
  • Proportional allocation of discounts and fee payment is cumbersome and error prone.

CosmoLex “Collection by Timekeeper” addresses all these concerns and provides you with a 1-click solution to this complex set of calculations.


CosmoLex Report Calculation Notes:

  • Only invoices that have payment applied in the selected date range are shown. All calculations are done when payment is actually applied to the invoice. For example, if you received a retainer in March but applied it in April, the corresponding invoice will show it in the April report.
  • If any discount was provided in the invoice, that discount is allocated to Timekeepers proportionally. This effectively reduces “Billed Fee” of individual Timekeepers in proportion to the discount provided.
  • Summary section lists totals for individual Timekeepers as well as Matter Owners.


Calculation Example:

Invoice Date

Invoice #

Timekeeper A Billed Amount

Timekeeper B Billed Amount

Expense Cards

Invoice Discount

Total Invoice Amount

07/01/2015

101

$200

$100

50

$30

$320

 



Timekeeper A Billed Fee (including Discount Allocation) = $180    ($200 - 10% discount allocation)

Timekeeper B Billed Fee (including Discount Allocation) = $90      ($100 - 10% discount allocation)

Total Billed Fee (including Discount Allocation) = $270
 

 

 

Payment Date

Amount

Total Collected Fees

A’s Portion of Collected Fee

B’s Portion of Collected Fee

08/01/2015

$160

$110*

 

= 110 x 180/270

=> $73.33

= 110 x 90/270

=> $36.67

09/01/2015

$160

$160

= 160 x 180/270

=> 106.67

= 160 x 90/270

=> 53.33

 

* First $50 is allocated to the Expense reimbursements.