Matter - Change in matter chargeability status - Non-Chargeable - Chargeable

Context

Matters set with time as non-chargeable or zero-rated, capture the time recorded with a valued using the rate assigned to reflect the opportunity loss without impacting WIP values.

Matters set with disbursements as non-chargeable or zero-rated, capture the disbursement costs at their original value to reflect the opportunity loss without impacting WIP values. In the case of disbursements, internal and third-party costs are accounted for in the GL Accounts set in the properties of the disbursement code.

Matters set with time and/or disbursements as non-chargeable or zero-rated in matter properties, can be modified for the time and/or disbursement to be chargeable; a process that affects the chargeability of all entries to increase WIP values as at the entry transaction date. This would be considered a WIP correction.

Matters set with time and/or disbursements as chargeable in matter properties, cannot be modified for the time and/or disbursement to be non-chargeable or zero-rated, unless the entries are first changed to non-chargeable and if the matter has never been billed. If the criterion for the change is met, the change in chargeability of all unbilled entries affected will reduce the value of WIP by the same value attributed in their unbilled state. This would be considered a WIP correction.

Access

From the client-matter dashboard drill through to the properties of the matter and press on the chargeability Status sub-tab on the information tab.

Process

Change the radio button position from “Non-Chargeable” to “Chargeable” and press “Yes” to accept the WIP correction.

Changes in chargeability – for example from non-chargeable to chargeable – are effective as of the entry transaction date. If applied to disbursements which are journalized at a transactional level, the change may impact closed fiscal periods in which case the user will need security to affect prior closed months or prior year closed years.

Results

The WIP results for the matter before the change shows as non-chargeable - $ icon with an X over it.

The WIP results for the matter after the change shows as chargeable - $ icon without an X over it.