Invoice - WIP Corrections & Invoice Adjustments

Scope and Purpose

The purpose of this document is to provide visibility of corrections and billing adjustments worked to collected options. Its scope extends across the options available during WIP management, invoice preparation and after the invoice is posted.

Highlights

Most WIP management activities are carried out during the invoice preparation process. This is because WIP corrections are identified while billing decisions are made by the person responsible for this activity. Navigate from the details tab to the fee allocation one. The order is intentional for users to progress through required corrections and modifications in order of implication to the result.

Details Tab:
- Review accuracy of billing contact – person, postal and email address. Make changes at the client, matter, or invoice level so they are correct moving forward. Confirm if statement of account contact is the same as the billing contact.
- Change the phase of the invoice from in-progress to final invoice if this is supposed to be the last invoice for the matter.
- Consider the position of the presentation rule default in case you need to work with the alternative.
Entries Tab:
- Missed Time: Press the upper right icon to check for missed time. The last time entry for the working members listed is for the last time entry recorded. If this date is not the last day of the month, there may be missed time for the matter.
- Text Edit: Use the text edit format (bottom left) to make permanent changes to time entry descriptions.
- WIP Section: Complete WIP corrections in the WIP section, then drag the entries back into the billing section.
- Billing Section: Complete entry or working member (timekeeper) and total fee overrides.
Paragraph Tab:
- Apply matter-level pre-set paragraphs so they substitute time entries on the invoice document. If the paragraphs include fee values, press execute to trigger the auto-calculated fee override.
- Right click to insert standard paragraphs which you can modify or create new ones to the have the same impact on the invoice document. You will be able to include hours and/or fees using the same functionality as if they were pre-set.
Totals, Trust and Discounts:
- Execute pre-set discounts (premiums) or new ones. Modify the text to be displayed on the invoice if you need to.
- Apply available trust funds, if approved to reserve the funds and trigger the trust payment to general deposit workflow.
Fee Allocation:
- Press “manual override” to apply authorized fee allocation modifications.
Invoice Document:
- Press “Invoice Document” to override default invoice presentation and format options.

WIP Management Correction

The following actions can affect hours worked and WIP

Requirement	How	Impact
Missed Time	“New” - Right-click contextual menu option; invoice properties - entries-tab - WIP section. POST to see it as WIP and drag it to the billing section.	Additions to recover missed time.
Time Entry Recorded Twice	“Reverse Time Entry” – Option available from the right-click contextual menu; invoice properties - entries-tab - WIP section, WIP dashboard or Show Time Entries results.	Corrections to posted time including time-entry reversals affects hours worked, and WIP (unbilled hours and values) as of the date of the transaction. Corrections to rates, affects worked and WIP values and working rates as of the date of the transaction Corrections to non-chargeable does not affect WIP (unbilled hours and values)
The time was incorrectly entered (i.e., 1.3 instead of 0.3)	“Properties” of the time entry - Option available from the right-click contextual menu - WIP section of the entries tab in invoice properties, WIP dashboard results or Show Time Entries form. Change the time value or complete a rate override. The latter requires security. Best Practice: Accounting completes a rate change instead.
The time has the wrong rate
The time was entered on the wrong day	“Properties” of the time entry - Option available from the right-click contextual menu - WIP section of the entries tab in invoice properties Similar functionality if properties is accessed from the WIP dashboard. Change the date or the member. Press OK to accept and exit. “Transfer from/to..” – “Date-to-Date” or “Member-to-Member” transfers. Transfer option available from the right-click contextual menu - WIP section of the entries tab in invoice properties, WIP dashboard results or Show Time Entries form. Transfer entries from one date to another or from one working member to another.	Date corrections to posted time affects hours worked in context of the transaction dates affected, as well as WIP (unbilled hours and values) as of the date of the transaction. Working member corrections to posted time affects hours worked in context of the working member affected, as well as their WIP (unbilled hours and values) as of the date of the transactions.
The time was entered for the wrong working member
The time has the wrong chargeability	“Change Chargeability” - Right-click contextual menu; invoice properties - entries-tab - WIP section, WIP dashboard or Show Time Entries results. Use for goodwill activities (zero-rated) or professional development ones.	Change of chargeability affects chargeable hours worked and WIP hours and values. Option to present time on invoice.
The time is too detailed, or it needs to be split	“Join” or “Split” to reflect needed granularity in WIP and on the invoice. Options available from the right-click contextual menu; invoice properties - entries-tab - WIP section.	As “Join” or “Split” do not change the measures of the total entry, there is no impact on hours or value worked or WIP.
The matter cannot be billed. It should be closed.	“Write-off” small-value non-recoverable unbilled time or disbursements because the final invoice was issued, records were capture in an untimely fashion and the matter should have been inactivated to prepare for close.	Unbilled entry write-offs are measured separately from non-recoverable internal inefficiencies or client bad debt

WIP Management – Entry and Fee Level Billing Decisions

The following actions do not affect hours worked or WIP

Requirement	How	Impact
Write-off the fee value of an entry to 0.00	“Write-down to 0.00” – Option available from the right-click contextual menu; invoice properties - entries-tab - billing section. Reverse the write down to 0.00 to restore its value.	The write-down to 0.00 is like a fee override to 0.00, therefore these actions affect the total fee value, triggering efficiency gains and losses as well as effective rates that will differ from working rates, fee variances and changing the realization metrics from 100%. The variance is immediately visible within the variance column of the table presented on the bottom left of the entries tab
Write-down (up) the fee value of an entry	“Properties” – Option available from the right-click contextual menu; invoice properties - entries-tab - billing section. Enter the fee override for the entry, depending on the override value a hint button will appear to explain presentation considerations. Press OK to accept and exit.
Write-down (up) the fee value for a working member	“Grouped Entries”, available from right-click contextual menu; invoice properties - entries-tab - billing section. Right click on member, and depending on presentation rule selected in the details tab, use change hours or value to trigger the fee override. Press “enter” to accept.
Group/Ungroup multiple entries into one	“Combine for Presentation Purposes” groups entries and text into one. “Combine with Entry-Level Paragraph Substitution” groups entries by common time-entry-level paragraph applied. Add entry level paragraphs to time entries if not done during the time entry process. “Uncombine” combined entries.	These actions only impact the invoice presentation. All measures and metrics are calculated based on the attributes of the time entry – date, working member and worked value. Anticipated disbursements will trigger a negative disbursement entry which will be offset by the future disbursement once the disbursement is recorded and posted. The choice of presentation rule for fee changes does not impact the internal measures and metrics for fee changes
Sort Entries	“Sort by…”, right-click contextual menu; invoice properties - entries-tab - billing section or select from the drop-down box in between sections and press the button to the left to apply. Recommended after dragging entries to-from the WIP section
Do not show a time entry but keep its value in the fee	“Hide” - option from the right-click contextual menu; invoice properties - entries-tab - billing section to hide the entry from presentation to the client but retain its value in the fee. “Restore from Hidden” reverses the use of hide.
New Entries	“New…” options from the right-click contextual menu; invoice properties - entries-tab - billing section including pre-billed disbursements are included on the invoice as an anticipated disbursement or as justification for write-up (fees mostly).

WIP Management – Fee Billed, Unrecovered and Allocated

The following actions do not affect hours worked and WIP

Requirement	How	Impact
Fee Override	Override the “Fees” field – bottom right of the entries tab in invoice properties, to change the total fees for the time to be billed.	These actions affect the total fee value, triggering efficiency gains and losses (except for discounts) as well as effective rates that will differ from working rates, fee variances and changing the realization metrics from 100%. The variance is immediately visible within the variance column of the table presented on the bottom left of the entries tab. Depending on the computation rule applied and rounding requirements, there may be invoice format (time and value per entry) considerations. The discount is visible on the invoice with the standard text for the firm, or the text presented (added) during matter creation or invoice preparation.
The unbilled time is not recoverable	If the total unbilled time position is not recoverable because of inefficiency, it should be billed internally at zero value. Override the “Fees” field – bottom right of the entries tab in invoice properties, to change the fees to 0.00. This invoice is not sent to the client.
Total Fees and Disbursement Override	Override the “Total” field – bottom right of the entries tab in invoice properties, to change the total fees and disbursement value before sales tax for the time and disbursements to be billed. The disbursements are not modified, to change the fee value for a disbursement to be billed, either modify the entry or its grouped value “Grouped Entries”.
Apply a discount	Discount options are available within the totals, discounts and trust tab. Press execute to apply a pre-set discount percentage or value or make a different discount decision before executing. Press execute to undo an applied discount (required to make additional modifications to the entries tab). Press reset defaults to return to the default discount position for the matter.
Total Invoice Override	Override the “Total Invoice” field – near bottom right of the totals, discounts, and trust tab in invoice properties. Un-apply the discount to access to change the invoice total before discounts can be re-applied. The disbursements are not modified.
Undo Fee Overrides	Press on undo override to revert back the changes made in the entries billing section and total fees fields.	The entries to be billed are returned to their original worked values.
Apply trust to reduce amounts owed on the invoice	Press on the ellipsis button to the right of the trust account field to select the account with available trust. Enter the value in the trust field below the total for the invoice. The trust amount will be limited to the least of amount available and the total owned on the invoice.	The value entered presents as a pro-forma payment of invoice from trust, reserves the funds to eventually trigger the trust payment and general deposit automated workflow.
Change the Fee Allocation	Press on the “Manual Override” button within the “Fee Allocation” tab to complete a change in fee allocation results.	The allocated fees for affected members no longer reflects the formula based allocation.

WIP and AR Management – Uncollected

The following actions do not affect hours worked or WIP

Requirement	How	Impact
The Client negotiates a reduction to an issued invoice.	Request that a credit note be applied to the invoice. The client will receive a document with the agreed to reduction which is compliant for sales tax purposes.	This action affects the total net fee value for the invoice. It impacts the effective rate and realization metrics. Fees and disbursements credited are also reported within multiple context.
The client cannot or does not want to meet their financial obligations.	Unbilled time and disbursements: Bill all the unbilled time and disbursments to have the invoice on record as part of the total receivable position.	These actions correctly reflect the total value of bad debt expense to the firm for fees and disbursement billed and not recovered. They provide a clear financial picture of a collection issue as opposed to an inefficiency one.
	Unpaid Receivables: Write-off the receivables