Adding Alternative Fee Arrangements to a Matter

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Navigation: TeamConnect User Interface > Collaborati Spend Management Administrator Help

Use the AFA page to enter alternative fees in place of hourly rates for matters or projects. You can enter a different alternative fee for each Collaborati vendor involved with the matter or project.

Note: You can only enter alternative fee arrangements if they are enabled, AFAs are active, and the AFA page is configured. To enable alternative fee arrangements, contact Mitratech Support. To activate and configure AFAs, see Activating Alternative Fee Arrangements and Rules and Creating Alternative Fee Arrangement Pages.

Before you can add alternative fee arrangements for a matter, vendors must be associated with the matter.

To associate matters with vendors for AFAs

1.Use the Involved/Assignees page of the matter to add a vendor as an Involved Party. The Role of the involved party must be an e-billing role listed on the E-Billing Roles page of CSM Settings.

The vendor's contact record must be associated with a vendor record in CSM Settings.

2.If the vendor's currency is different from your Default Currency in Admin Settings, update the vendor's Currency from the Rates page of vendor's contact record. TeamConnect rejects an invoice from a vendor if the currency on the invoice does not match the vendor's currency in TeamConnect.

To add alternative fee arrangements to a matter

1.Search for a matter and open it.

2.In the left pane, click the AFA link. If multiple vendors are associated with the matter, you see a section for each vendor.

3.Select an AFA Type. For most AFAs, if you receive an invoice of an amount that exceeds the alternative fee, the invoice auto-adjusts or includes a warning, depending on the system configuration. The following AFA descriptions include any exceptions:

oBlended Hourly Rates—The hourly rate is the same rate for any timekeeper billing time on the matter.

oCapped Fee—The total amount is based on the standard hourly rate, but it cannot exceed a set amount.

oContingency Fee—The fee is contingent on success in a matter, such as a defined victory in a dispute or closing a deal. The contingency has to be met for the matter to be billed. If the vendor sends an invoice and the contingency has not been met, the invoice auto-adjusts to zero or includes a warning.

oFixed Fee (Matter Based)—A fixed amount for all fees in a matter.

oFixed Fee (Milestone Based)—A fixed amount for each defined milestone that a matter completes. A milestone must be met for the matter to be billed. If the vendor sends an invoice that exceeds the total amount for all completed milestones, the invoice auto-adjusts to zero or includes a warning.

oFixed Fee (Time Based)—A fixed amount for each time interval. If an invoice amount is not equal to the fixed fee amount or the invoice date is earlier than the agreed payment date, the invoice auto-adjusts or includes a warning.

oShared Costs—The fee is based on a percentage of the costs, sometimes with a different percentage for fees and expenses.

oVolume Discount—A discount applies when the sum of all invoice amounts for a matter exceeds the volume threshold. When the invoice totals exceed the threshold, the discount applies only to the invoice (and all invoices after) that cause the sum to exceed.

For example, if the threshold is $100 and the vendor submits two invoices that equal $90 and then submits a third invoice of $30, the discount applies to all $30 of the invoice. In this situation, each line item in the third invoice adjusts with the new discounted amount.

Changing the AFA Type or one of its fields after you have received Collaborati invoices for the matter can cause issues with the invoice savings amount.

4.Depending on the AFA Type, different fields appear. Enter information in each field that needs to be updated for the AFA. See the Alternative Fee Arrangements Fields table for descriptions of each field.

5.(Optional) Place a check-mark in the Hourly Fee Tracking check-box if you want to specify whether or not to track the hourly invoice fees that would apply without the AFA.

Important: Make sure you do not change this option after you have received Collaborati invoices for the matter. Changing the Hourly Fee Tracking and Tracking Method fields after TeamConnect starts receiving Collaborati invoices can cause issues with the invoice savings amount.

Depending on previously configured settings, you may not have the option of hourly fee tracking or the tracking method might already be selected. Volume Discount and Shared Costs never have this option.

After you enter a check-mark, select one of the following as the Tracking Method:

oFee Adjustment—A standard invoice that includes the original invoice fees with an adjustment for the alternative fee amount.

oShadow Invoice—An additional invoice that includes the line item hourly fees, while the alternative fee appears as the only amount on the standard invoice.

6.Save the matter.

Alternative Fee Arrangement Fields

AFA Type	Fields to Update for AFA Type	Fields that Display for AFA Type
Blended Hourly Rates	•Blended Hourly Rate—Enter an hourly rate for any timekeeper billing time on the matter.	•Blending Hourly Rate Savings—Displays the amount that the blended hourly rate saves compared to hourly fees.
Capped Fee	•Capped Fee Amount—Enter the amount that the matter cannot exceed.	•Total Fees (To Date)—Displays the total hourly fee amount that vendors have submitted on invoices for the matter. •Capped Fee Savings—Displays the amount that the capped fee saves when the hourly fees exceed the capped fee.
Contingency Fee	•Contingency Fee Amount—Enter a fee for the matter if it meets the contingency requirement. •Contingency Description—Enter a description of the requirement for meeting the contingency. •Contingency Achieved—Place a check-mark in the check-box when the matter meets the contingency.	•Contingency Fee Savings—Displays the amount that the contingency fee saves compared to the hourly fees.
Fixed Fee (Matter Based)	•Fixed Fee Amount—Enter the fixed fee for the matter.	•Total Fees (To Date)—Displays the total fee amount that vendors have submitted on invoices for the matter. •Fixed Fee Savings—Displays the amount that the fixed fee saves when the hourly fees exceed the fixed fee.
Fixed Fee (Milestone Based)	•Add Milestone—Click this button to add a milestone. You can add as many milestones as necessary. •Milestone Fee Amount—Enter the fee for a defined milestone. •Milestone Requirement—Enter a description of the requirements for meeting the milestone. •Milestone Met—Place a check-mark in the check-box if the matter meets the milestone.	•Total Fees (To Date)—Displays the total fee amount that vendors have submitted on invoices for the matter. •Fixed Fee Savings—Displays the amount that the fixed fee saves compared to the hourly fees.
Fixed Fee (Time Based)	•Start Date—Enter the first date of the first interval. •Fixed Fee Payment Amount—Enter the fixed amount for each payment interval. •Time Interval—Enter how often a new interval begins. •No. of Payments (Total)—Enter the number of intervals.	•Total Fees (To Date)—Displays the total fee amount that vendors have submitted on invoices for the matter. •No. of Invoices(Total)—Displays the number of invoices that vendors have submitted for the matter. •Total Fixed Fee Amount—Displays the total fixed fee amount based on the fixed fee and the number of payments. •Fixed Fee Savings—Displays the amount that the fixed fee saves compared to the hourly fees.
Shared Costs	•Matter Percent Share-Expenses—Enter a number for the percentage of expenses that the client pays. •Matter Percent Share-Fees—Enter a number for the percentage of fees that the client pays.	N/A
Volume Discount	•Volume Threshold—Enter the amount that the invoice sum has to exceed for a discount to apply to an invoice. •Discount Percentage—Enter a number for the percentage for the applied discount.	•Total Fees (To Date)—Displays the total fee amount that vendors have submitted on invoices for the matter.

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