CounselLink Answer Center for Clients

Allocation

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This article covers the following:

About Allocation

Understanding Key Terms

Terms Description
Allocation An accounting concept in which costs are shared among one or more parties. Allocations are set at the matter level but may be customized at the invoice level.
Allocation Contact An entity responsible for paying an invoice related to a specific claim or matter. The entity may be internal or external.
Allocation Group A named group of two or more allocation contacts that share responsibility for matter costs, along with defined cost-sharing rules.
External Allocation Your organization and one or more outside entities share the costs of an invoice (e.g., two insurance companies each pay a percentage).
Internal Allocation Two or more internal accounting entities share the costs of an invoice (e.g., cost centers, general ledger accounts, or AP accounts).

 

Customizing Matter Allocation

Allocation for a matter can be customized in multiple ways:

  • A matter can use either external or internal allocation (not both).
  • Different rules can apply to fees and expenses.
  • Cost-sharing can be defined by percentage, pay limits, or “pay after” limits.
  • Installment payments are excluded.
  • Allocation can also be driven by configured custom data fields.

Including the Law Firm (External Allocation)

With external allocation, full or partial invoices may be billed to multiple parties. When another company or entity will share costs, include the law firm in discussions about who will be billed and what percentages apply.

Payment tracking is available for the primary client within CounselLink. If costs are shared across multiple internal budget units, law firms typically do not need to be notified.

Altering Allocation for an Invoice

You can adjust allocation on an unapproved invoice without changing the default allocation for the matter. You can also change allocation rules for future invoices and, depending on configuration, previously approved invoices.

Set Security Roles

Client users with the Allocation Administrator role have the authority to set up allocation contacts and groups. See Editing User Roles for more information.

Editing Allocation on a Matter

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Client users can modify an allocation group and its contacts for matters with allocation applied. Changes saved to the matter-level allocation apply to all unapproved invoices and future invoices for the matter.

You typically edit either:

  • The allocation group used on the matter, or
  • Cost-sharing percentages for contacts within the group.

You must have the Matter Setup or Matter Assign role to edit allocation on a matter. Law Firm users cannot view matter allocation.

  1. Click the Allocation tab on the Matter Overview page.

  2. Click Edit. The Allocation Maintenance for Matter Allocation page opens.

  3. In the General Information section, modify information for the fields mentioned in the following table.

    Changing the group information here only modifies it on the specific matter you've selected.  The fields marked with * are required.

    Field Description
    Allocation Group Name* Edit the name for the group.
    Group Description Edit the description of the group.

    The Status and Allocation Group Currency fields cannot be modified.

  4. Edit the Fees and Expenses as needed.
  5. Optional: If your organization uses GL Codes for contacts, modify them here. Some organizations have GL Code as a required field.

  6. Optional: Edit the Contacts in the Allocation Group.

    Add Allocation Contacts

    1. Click Add Allocation Contacts. The Add Allocation Contacts window displays.

    2. Select the contact(s) you'd like to add to the group.
    3. Click Add Contacts. The contacts are added to the group.

    Delete Allocation Contacts

    1. Select the contact(s) you'd like to delete from the group.
    2. Click Delete.

    3. Click Yes, Continue on the confirmation window. The contact is deleted.

      Contacts with a Balance Remaining designation cannot be deleted from the group.

    Create Allocation Contacts

    Click Create New Contact. You must have the Allocation Administrator role to use this option.

  7. Click Save. The Set Allocation for Approved Invoices page displays if:
    • Invoices on the matter have been approved.
    • The Allow Multiple Invoice Approvals is enabled at the Fee Structure level.
    • The Allow Multiple Invoice Approvals is enabled at the Corporate, Division, and Office level.
  8. Click the Filter by Effective Date calendar icon.
  9. Select the date when the allocation changes will take effect.

  10. Click Go. The invoices affected by the allocation changes are displayed.

    Click Reset to display the original invoice list.

  11. Select one of the following:

    • Apply to Invoices: Apply allocation changes to the invoices displayed in the Invoice List. The Matter Overview page displays.

      The approved invoices go to client review level 1.

    • Don’t Apply to Invoices: Do not apply allocation changes to the invoices. The Matter Overview page displays.
    • Cancel: Cancel the changes. The Allocation Maintenance page displays.

Editing Allocation on an Invoice

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A matter may have an allocation group set by default, but you can override allocation for a specific invoice (for example, by adding/removing contacts or changing cost-sharing). Client users can modify allocation for both unapproved and approved invoices.

Editing an allocation on approved invoices requires the invoice be re-entered into the invoice workflow. Law Firm users cannot view invoice allocation.

 

  1. Click the Allocation tab on the Invoice Overview page.

  2. Click Edit. The Allocation Maintenance page opens.

  3. Optional: Modify the General Information field section if needed.

    Changing the group information here only modifies it on the specific invoice you've selected. The fields marked with * are required.

    Field Description
    Allocation Group Name * Edit the name for the group.
    Group Description Edit the description of the group.

    The Status and Allocation Group Currency fields cannot be modified.

  4. Optional: Edit the Contacts in the Allocation Group.

    • Add Allocation Contacts

      1. Click Add Allocation Contacts. The Add Allocation Contacts window displays.
      2. Select the contact(s) you'd like to add to the group.
      3. Click Add Contacts. The contacts are added to the group.
    • Delete Allocation Contacts
      1. Select the contact(s) you'd like to delete from the group.
      2. Click Delete.

      3. Click Yes, Continue on the confirmation window. The contact is deleted.

        Contacts with a Balance Remaining designation cannot be deleted from the group.

    • Create New Allocation Contact

      Click Create New Contact. You must have the Allocation Administrator role to use this option.

  5. Modify the Contact Allocation section as needed.

    In the Additional Settings section, only configured fields display. You may not see all the fields listed below.

    Field Description
    Fee % share Percentage paid by the contact for fees.

    Fee B.R. (Balance Remaining)

    In the group, select a contact to pick up any remaining fee balance on an invoice.

    		 Select a contact to pay any remaining fee balance. If selected, Fee % Share cannot be modified.
    Expense % Share Percentage paid by the contact for expenses.

    Expense B.R. (Balance Remaining)

    In the group, select a contact to pick up any remaining expense balance on an invoice.

    		 Select a contact to pay any remaining expense balance. If selected, Expense % Share cannot be modified.
    Additional Settings - Depending on your organization's configuration, you may not see these options.
    Limit Amount

    Total amount the contact should pay over the life of the matter.
    External Paid

    If enabled, use this to enter amounts paid outside CounselLink:

    1. Click the () icon.

      The Edit External Allocation Paid Amount window opens.

    2. In the Amount Details section, type amount in the following fields:
    • Insured Indemnity Paid: Type the indemnity amount paid
    • Insured Expense Paid: Type the expense amount paid
    • Exclude Insured Indemnity Paid from Limit:
      • Click Yes to exclude the insured indemnity amount paid in limit
      • Click No to include the insured indemnity amount paid in limit
    • Corporate Indemnity Paid: Type the corporate indemnity amount paid
    • Corporate Expense Paid: Type the corporate expense amount paid
    • Exclude Corporate Indemnity Paid from Limit:
      • Click Yes to exclude the corporate indemnity amount paid in limit
      • Click No to include the corporate indemnity amount paid in limit

    1. Click Save.

      The Edit External Allocation Paid Amount window closes.

      This field is displayed only if the Insured Indemnity Paid or the Insured Expense Paid configuration is enabled.
    Cost Share

    Select to reduce Net to Pay for an internal party and share costs among internal and external parties.
    Track Overage Select Track Overage check box to track amounts that are over the limit and have to be paid.
    Shared Limit Contact If enabled, select a Shared Limit Contact using the search/add workflow available in your system configuration.
    GL Code

    The GL (General Ledger) code list data is displayed. From the list, select the relevant GL code.

    The GL Code field is displayed only if its configuration is enabled.

    Description

     

    Type the description related to the GL code.

    The Description field is displayed only if its configuration is enabled.
  6. Click Save.
  7. The Set Allocation for Approved Invoices page displays if:
    • The invoice for the allocation has been approved.
    • The Allow Multiple Invoice Approvals configuration is enabled at the Fee Structure level.

    • The Allow Multiple Invoice Approvals configuration is enabled at the Corporate, Division, and Office level.

      Do one of the following:

      • Click Apply to This Bill to apply allocation changes to the invoice. The Invoice Overview page opens.

        The invoice returns to the first stage of the invoice review workflow.

        The Allocation Maintenance page opens.

      • Click Cancel if the allocation changes should not be applied to this approved invoice. 

The Invoice Overview page displays.

Correcting Allocation on an Approved Invoice

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If an approved invoice has incorrect allocation, you must remove the approval, update allocation, restart the workflow, and re-approve the invoice.

You must have the Workflow Administrator role to perform this action.

  1. Find the approved invoice.
  2. Click Workflow Actions.

  3. Select Remove Last Approval from the list. A confirmation window displays.

  4. Click Yes.

  5. Click Edit on the Allocation tab. The Allocation Maintenance page displays.

  6. Edit the group contacts as needed.
  7. Click Save. The Invoice Overview page displays with the updated contacts.
  8. Click Workflow Actions.
  9. Select Restart completed workflow. A confirmation window displays.
  10. Click Yes in the confirmation window.

The invoice returns to the beginning of the workflow and must complete review again for approval.

Optional: Update the matter allocation so future invoices inherit the correct allocation.

Applying an Allocation Group to a Matter

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An allocation group includes two or more allocation contacts that share responsibility for matter costs. You can apply an allocation group during matter creation or from the Matter Overview page.

You must have the Matter Setup or Matter Assign role. As a best practice, apply allocation during matter creation when possible.

Choosing an Allocation Group During Matter Creation

  1. Create a new matter by one of two ways:
    • Click +Create Matter in the Matters panel on the homepage.

    • Click +Create Matter in the top right corner of the Matter Search page.

      The Create Matter page displays.

  2. At the bottom of the page, in the Templates section, choose an Allocation Group from the drop-down list.
  3. After completing the fields on the form, click Save to create the matter. The Matter Overview page displays.

Adding an Allocation Group from the Matter Overview

  1. Click the Allocation tab on the Matter Overview page.

  2. Click +Select Allocation Group.

    The Select Allocation Group window displays.

  3. Select an allocation group from the drop-down list.

  4. Click Add. 

Deleting an Allocation Group from a Matter

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You can delete an allocation group from a matter and then add a different allocation group if needed.

You must have the Matter Setup or Matter Assign role. The matter must have no approved invoices.

  1. Click the Allocation tab on the Matter Overview page. The Allocation section displays.

  2. Click Delete.

  3. Click Yes, Delete on the confirmation window.

Printing an Allocation Limit Report

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The Allocation Limit Report button displays only if the Limit Amount configuration is enabled.

  1. Click the Allocation tab on the Matter Overview page.

  2. Click Allocation Limit Report. The Allocation Limit Report window displays.

  3. Click Print.

Viewing Allocation History

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You can view the history of allocation changes to see what was changed and which contact or group was affected.

  1. Click the Allocation tab on the Matter Overview page.

  2. Click the History icon in the upper right corner.

    The Matter Allocation History window displays.

    The Context section shows which contact or group was affected by the edit.