A write-down is a transaction that is used to decrease how much you bill your client. The decision to enter a write-down is made prior to billing. In this respect it is to be distinguished from an adjustment, which is entered after
billing. You may enter write-downs in a number of ways and you may reflect them on bills in a number of ways. Your decisions have to do with the usual two issues - what you want your client to see on his or her bill and what you want to see on your
management reports.
The critical question to answer is "Do you want your client even to know you wrote down your charges?"
YES
If you answer this question with a "yes," you must then decide how you want the write-down to appear on the bill. You have three basic options.
NO
If you prefer not to let your client know you wrote down your charges, then your simplest option is to enter the write down by altering existing fee transactions rather than by entering a new fee. In this case you merely reduce the billable amount on
whatever transaction(s) you wish to affect. If your client is familiar with your billing rates and you show hours on your bills, then you must reduce the billable hours, as well. You may write-down individual transactions of your choice or you may use
Legalmaster's automatic distribution of write-downs option. The first sample bill below serves as an example. Prior to the write-down, the fees were worth $640.50. The $142 write-down brought the charge to $498.50.
The critical thing is that all three of these bills are for the same amount. All resulted from $640.50 in fees being reduced to $498.50. All will be reflected on management reports in precisely the same way; i.e., that your actual fees were worth
$640.50, that you wrote down $142.00 and that you billed $498.50.
Laurie's Law Firm
1440 Broadway
10th Floor
Oakland, California 94612
Federal Tax ID: 94-2663290
October 22, 2001
Fireman's Fan Assurance
Janice Queenan
300 Marlborough Way
Novato CA 94009
Our identifying code for this case FF-WILSON
Invoice number 226
Plaintiff's name: Wilson, Louise
Insured's name: Durante, James
Claim number: 407-H-6390005-28-000
____________________________________________________________
Statement of Services Rendered
____________________________________________________________
Atty Services rendered Hours Amount
10/02/01 JSR Telephone conference with opposing attorney regarding
selection of ties for upcoming court appearance 0.5
10/05/01 SLC Preparation of documents for JSR's court appearance
next week 0.3
10/10/01 JSR Court appearance in San Francisco County Superior Court 0.2
10/11/01 LL Alphabetizing about 2000 index cards that JSR dropped 0.9
10/18/01 PHR Meeting with JSR regarding telephone conference with
Judge Rostov regarding JSR's tie 0.6
------- -------------
Total professional services through 10/18/01 2.5 $498.50
------- -------------
Prior balance $18,299.81
Total amount due and payable $18,798.31
=============
Show me the different ways that Legalmaster can reflect write-downs on bills.
Laurie's Law Firm 1440 Broadway 10th Floor Oakland, California 94612 Federal Tax ID: 94-2663290
October 22, 2001
Fireman's Fan Assurance Janice Queenan 300 Marlborough Way Novato CA 94009
Our identifying code for this case FF-WILSON Invoice number 227
Plaintiff's name: Wilson, Louise Insured's name: Durante, James Claim number: 407-H-6390005-28-000
____________________________________________________________
Statement of Services Rendered ____________________________________________________________
Atty Services rendered Hours Amount
10/02/01 JSR Telephone conference with opposing attorney regarding selection of ties for upcoming court appearance 0.6 210.00
10/05/01 SLC Preparation of documents for JSR's court appearance next week 0.4 40.00
10/10/01 JSR Court appearance in San Francisco County Superior Court 0.3 105.00
10/11/01 LL Alphabetizing about 2000 index cards that JSR dropped 1.1 137.50
10/18/01 PHR Meeting with JSR regarding telephone conference with Judge Rostov regarding JSR's tie 0.8 148.00
10/18/01 SLC Write-down because you're such a great client 0.7- 142.00CR ------- ------------- Total professional services through 10/18/01 2.5 $498.50 ------- -------------
Prior balance $18,299.81
Total amount due and payable $18,798.31 =============
Laurie's Law Firm 1440 Broadway 10th Floor Oakland, California 94612 Federal Tax ID: 94-2663290
October 22, 2001
Fireman's Fan Assurance Janice Queenan 300 Marlborough Way Novato CA 94009
Our identifying code for this case FF-WILSON Invoice number 226
Plaintiff's name: Wilson, Louise Insured's name: Durante, James Claim number: 407-H-6390005-28-000
____________________________________________________________
Statement of Services Rendered ____________________________________________________________
Atty Services rendered Hours Discount Amount
10/02/01 JSR Telephone conference with opposing attorney regarding selection of ties for upcoming court appearance 0.5 0.1 175.00
10/05/01 SLC Preparation of documents for JSR's court appearance next week 0.3 0.1 30.00
10/10/01 JSR Court appearance in San Francisco County Superior Court 0.2 0.1 70.00
10/11/01 LL Alphabetizing about 2000 index cards that JSR dropped 0.9 0.2 112.50
10/18/01 PHR Meeting with JSR regarding telephone conference with Judge Rostov regarding JSR's tie 0.6 0.2 111.00 ------- ------- ------------- Total professional services through 10/18/01 2.5 0.7 $498.50 ------- ------- -------------
Summary Hours Rate Amount
Jacob S. L. Rubin 0.70 350.00 245.00 Phillip H. Rubin 0.60 185.00 111.00 Laurie Leiber 0.90 125.00 112.50 Sarah L. Church 0.30 100.00 30.00
Prior balance $18,299.81
Total amount due and payable $18,798.31 =============