Periodic Bills for Contingency Collection Matter

Question

I have set up a matter on a contingency basis. It is a collection matter and we are to receive 1/3 of any amounts collected. We are collecting money pursuant to a wage deduction order, so we receive payments periodically. The firm is to receive 1/3 of the amount collected and the client is to receive the remaining 2/3. How do I run bills for this type of situation and show the deposits and payments in the client fund?

Nancy Duhon · Answer

To Bill it: You can create a recurring slip to attribute the fees to a particular timekeeper, or just set up a Perpetual Flat Fee arrangement in order to bill the same amount each cycle. 
 To Process Payment: 
 Deposit the payment in the Trust Account (since not all of it belongs to the firm) at the bank. 
 Make either a Deposit to Account or Payment to Account to the Funds Account in Timeslips. 
 Once the check clears, write two checks out of the Trust Account, one payable to the firm for it's 1/3 and another to your client for the remainder. 
 Use the Timeslips Payment from Account to record the payment out of Funds, and to the firm. This will deduct the amount from Funds, and post it to the A/R to reduce the balance. 
 Put in a Withdrawal from Account in the Funds to account for the money sent to your client and NOT paid to the firm. That will zero out the Funds, but you will have a remaining A/R balance. 
 So I would put in a WriteOff or Credit Transaction to reduce the A/R to zero, and then edit the text to describe how the amount was sent to your client. 
 So you end up with documentation in Timeslips that you billed $X, received $X. Took 1/3 of $X as your fee, and sent the remainder to your client, but the debtor's account was paid in full. 
 Nancy Duhon, Esq. 
 Duhon Technology Solutions, LLC 
 Master Certified Consultant for Sage Timeslips 
 Providing individual Consultations and Third Party Remote Desktop Support - including older/unsupported versions. 
 duhon@duhon.biz 
 404-325-9779

Teresa D. · Answer

I think I figured it out. I had to go into Client information-->Arrangements-->Edit...-->for "Amount" I entered in the 1/3 amount my firm is receiving, for "Status" I changed to "Final Bill" and then hit ok. That did the final bill for the Time Slip Charges I had incurred to date and applied the 1/3 amount my firm is receiving to those Time Slip Charges. As I incur more Time Slip charges and hopefully receive more wage deduction payments I will just have to choose the option of "Start Another Flat Fee" and then repeat the steps above and do a "Final Bill." I no longer have a negative A/R amount.

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