Administration surcharge

 

The Charge Administration Surcharge setting in the Clients and Matters screen enables you to automatically process a surcharge on clients/matters when billing using Create Bills.  You can configure it as a percentage of the fees on the bill, as a fixed amount per bill, or as a one-time fixed amount.  The Administration surcharge does not apply to firms operating in Canada.  

 

The Administration surcharge updates the client/matter accounts receivable disbursements balance, debits the Accounts Receivable Disbursements general ledger account (depending on your accounting method and control accounts) and credits the general ledger account associated with the Administration surcharge disbursement code.  

 

To configure the Administration surcharge, you must first set up a disbursement code to use for the surcharge, and you must associate the disbursement code with a general ledger account.  Then, enable charging the fee in the System Settings screen.  Follow the steps below.  

  1. From the Lists menu at the top of the screen, select Disbursement Codes and add a new code.

  2. Select the general ledger account in which you want to record the surcharge.  This account is credited when the fee is charged.  

  3. Configure the disbursement code tax settings appropriately, based on how you want to charge the fee.  (Most firms do not charge tax on this fee.)

  4. Beside Display on Bill as, choose Other.

  5. Click Save .

  6. Next, enable charging the fee.  From the Settings menu at the top of the screen, select System Settings.

  7. Click the Billing tab, and click Edit image\edit20x20.gif.

  8. Enable Automatically Charge Client, and beside Option, select how you want to charge the fee.  Select A percentage of fees to base the amount on the fees billed, and enter the percentage in the space provided.  If you choose this option, each bill that includes fees (lawyer's and timekeeper's time) will also include the Administration fee.  Select Amount every invoice to charge a set amount on each bill, and enter the amount in the space provided.  Otherwise, select One time amount, and enter the amount.  

  9. In the Code field, enter the disbursement code configured in Step 3.  

  10. Click Save .  

 

Notes