Setting Up Fee Allocations

In this article:

• Setting Up Global Fee Allocations (Admin)
• Setting Fee Allocations for a Specific Matter-Specific Settings

In Actionstep, you can define settings and overrides to determine the fee allocations for bill payments. Fee allocations are tracked for each fee earner regardless of whether fees go to a specific fee account or individual fee earner accounts.

Setting Up Global Fee Allocations (Admin)

An admin user can set up how fee allocations work by default across Actionstep. 

To do this:

1. In Actionstep, go to Admin > Billing. The Billing page appears.
2. In the Timekeeper fee allocation section, click the Default fee allocation for matters drop-down list and choose one of the following:
   • Pro-rate: This option distributes fee allocation based on how it was entered. If a timekeeper's fee entries account for 50% of fees, they are allocated 50% of the fee amount on a bill.
   • All to responsible lawyer: This option ensures that all fees are allocated to the Responsible Lawyer participant.
     TIP:  You can designate the Responsible lawyer participant type in the Participant type setup section of this Billing page. To learn more about the "responsible lawyer" role, see Understanding the 'Responsible Lawyer' Role in Actionstep Billing.
3. Optionally, click Edit timekeeper fee income accounts to designate fee earners to specific GL accounts. (For instructions on creating accounts, see Add a General Ledger Account.)
   NOTE: Designating a specific fee income account can be useful for GL reporting so you can see the exact fee allocations each timekeeper has received using the Account Entries Report.

Setting Fee Allocations for a Specific Matter-Specific Settings

You can also choose how fees are allocated on a matter-by-matter basis.

To do this:

1. In Actionstep, view the matter you want to set up. (See Editing a Matter for help.)
2. Click the Billing menu icon. The Billing page appears.
3. Click the Matter billing options link on the left side of the page. The Matter Billing Options page appears.
4. In the Fee allocation section, provide the following information:
   • Allocate fees: Click this drop-down list to specify how fees will be allocated for this specific matter. Your options include Pro-rate, Responsible lawyer, and Selected timekeeper (which you can then specify). 
   • Allocate fee adjustments: Click this drop-down list to specify how fee adjustments will be allocated. Your options include Based on original fee split, Responsible lawyer (used when the gains or losses on an invoice can be attributed to the responsible lawyer), and Selected timekeeper. 
     TIP:  An adjustment to an invoice is an increase or reduction in the fees that are being charged when compared to the WIP on the invoice.
     NOTE:  For example, if you use the Based on original fee split option on an invoice in which three fee earners recorded $1000 each of time and had a $300 discount, then each fee earner contributed one third each. This means the discount will be divided by three and applied to each. In this case, each fee earner will get a total fee allocation of $900
   • Enable origination fee: Toggle this option to on to designate an Originator timekeeper (select any fee earner in the system to receive an origination fee %, allocated off the top of fees) and Origination fee %(enter the percent of fees allocated to the originator timekeeper).
     NOTE:  However allocation is set, the selected originator is allocated the defined percentage of total fees to be allocated before another allocation is calculated.

Related Articles:

• Changing Fee Allocations
• Fee Allocation per Payment Report