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Recurring Billing For a Fixed Fee Matter

Introduction

There can be situations when a firm and the client agree on a recurring payment schedule for a fixed fee matter. For example, the client pays a set amount each month until they pay the full fee.

While CosmoLex does not currently have a built-in recurring billing function, there are two options you can use to address this payment arrangement with your client.

Hourly Matter with Flat Fee Entries

In this case, set up your matter as ‘hourly’ and create a flat fee time entry for each month agreed to. You can enter them all in at once, or enter them each month as you go. Then, create an invoice for each flat fee entry. 

Consider that the these time entries will appear in your time/activity reporting for the matter.

Learn how to enter a flat fee entry for an hourly matter

Bill Recurring Fixed Fee

If, for reporting purposes, you prefer to keep your matter as Fixed Fee, you also have the option of billing your fixed fee matters in multiple instances.

The following example assumes a $5,000 fee billed at $1,000 a month.

1. Add your matter as Fixed Fee, and enter the full fee amount (i.e. $5,000)

Steps 2-3 can be done as you go, or all at once.

2. Create an invoice for the client with the monthly payment amount. 

3. In the Add Invoice screen, change the fixed fee amount to the monthly installment amount (i.e. $1000). 

Step 4 should only be done if you choose to create invoices for all payment installments at once

4. Change Invoice Due Date to the appropriate due date for that month’s installment. For example, if the payments are to start in October and continue until February. Make sure the invoice for each month has the correct due date (i.e. 15 or 30 days after invoice date). This will make collection easier for you when checking on the status of the client.  

All set! Whether you select to create the invoices as you go, or all at once, the matter will show the remaining amount yet to be paid as an Unbilled Balance. So that at all times, your firm is aware of how much is still owed.

Learn More

Billing Methods in CosmoLex

Add and Manage Matters

Add and Manage Time Entries

Enter Flat Fee Activity for an Hourly Matter

Updated on October 10, 2018

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