Law Firm Matter Budgets
When configuring law firm matter budgets, there are several options that can be set at different levels.
Budget Settings and Locations
Law firm matter budget settings are configured in several different places in Tracker. Settings at the System Setup level are global and affect budgets system-wide. However, some of the settings can be changed for individual matters at the Matter Budget Options level. The table below outlines the settings and where they are configured.
Tracker Location | Setting |
Budget and Accrual System Setup |
|
Matter Types (Templates) System Setup |
|
Matter/Budget Options |
|
Firm Profile Page |
|
Budget Profile Page |
|
Configuring law firm matter budgets
At the Budget and Accrual System Setup Level
The first place to configure law firm matter budget options is at the system setup level. Here, Company System Administrators set global preferences that affect budgets system-wide.
Only a Tracker database administrator can save changes to the Budget and Accrual Setup page. Although companies can view the options and make decisions during budget and accrual setup, only a Tracker database administrator can save changes to the page. Thus, companies should consider these settings carefully.
The following three options are set on a global level in Setup:
- Fiscal year budget format: This setting controls the format of the budget template that appears when users enter a fiscal year budget. The budget can be broken down yearly, quarterly, or monthly. Regardless of the default setting selected here, the budget format can be changed per matter at the Matter Budget options level. In addition, you can change the fiscal year budget format for multiple matters at the same time by using Bulk Update.
- Who can review budgets: This setting requires companies to decide what matter role a user must have in order to review, approve, reject, and edit law firm matter budgets. This setting cannot be changed anywhere else in Tracker. To change the setting later requires a Tracker database administrator to change the System Setup page.
- In what month should next year's budgets be due: If a matter is active for more than one full fiscal year, the law firm matter budget must be updated before the start of the next fiscal year. Typically, companies opt to have budgets submitted several months in advance of the end of the fiscal year. The Completed on day is determined by the Law Firm Input Start Date, which also relates to accruals and status reports. This setting is controlled by the Calendar of Events, which can be edited only by a Tracker Coordinator.
Finally, there is a Departmental Budgets/Reforecasts setting that can have a significant effect on law firm matter budgets. If a company enables the Departmental Budgets/Reforecasts module and configures it so that law firm matter budgets are the default source of the departmental budgets, law firm matter budgets will be required for all matters by default. However, this setting can be changed on a matter-by-matter basis in Matter Budget Options.
At the Matter Types System Setup Level
There are three settings companies can configure at the Matter Types system setup level. Company System Administrators can customize each template to require the most appropriate budgets. For example, all patent templates might use a phased-patent budget format.
Budget type. This setting controls the preset budget format when a user enters a Law Firm Matter Budget. The options are fiscal year (the default setting for whether fiscal year budgets are monthly, quarterly, or yearly is set in the Budget and Accrual Setup), phased litigation, or phased patent.
When the initial budget is due. Here, Company System Administrators decide how many days after a matter is created the initial required budget becomes due. (The default setting for whether a budget is required is set at the Budget and Accrual Setup level, and it can be changed per matter at the Matter Budget Options level.) The default setting is for the budget to be due 0 days after matter creation; however, Tracker automatically affords a 10-day grace period.
If a budget is required, the external law firm will receive an Action Items alert and an email (if the users have enabled email notifications) stating that the budget is required. If the matter has no law firms assigned, the Lead Company Person will receive the Action Items alert and email notification (if enabled).
If a required budget is not submitted by the due date, Tracker holds the responsible firm's invoices and does not allow them to be submitted for approval and payment. Thus, when setting the initial budget due date, companies must consider how quickly a firm will be able to develop a meaningful budget. Companies might want to consider allowing 30 to 60 days for the firms to enter the initial budget.
As soon as the firm submits a budget--even if it has not yet been approved--then invoices are released. However, if the budget is rejected, then Tracker holds invoices again until the budget is edited. If the matter has no lead outside counsel, the restriction on invoicing for the lead law firm does not apply.
At the Matter/Budget Options Level
For each matter, companies can configure two different budget settings at the Matter/Budget options level.
Budget options
on Budget
opens the same page as Matter Options
.Law firm Matter budget requirement. Here, companies decide whether no budgets are required, or whether they are required only from the lead law firm or from all firms and vendors. If budgets are not required, they can still be entered by either law firm or company users.
If a firm or vendor has billing-only access to a matter, the company cannot require it to submit a budget. Also, if a firm has been configured so that budgets are never required of it, the company cannot require the firm to enter a budget for a particular matter.
If the company intends for a company user to enter law firm matter budgets, then the budget should not be required. This way, budget notifications will not be sent to law firm users, and invoices will not be held if the company user does not submit the budget by the due date.
Budget Type. This setting controls the preset format when a user enters a law firm matter budget. The options are fiscal year (the default setting for whether fiscal year budgets are monthly, quarterly, or yearly is set in the Budget and Accrual Setup), phased litigation, or phased patent.
Over-Budget Auditing
Companies can configure Tracker to send an alert when approval of a firm or vendor's invoice would cause the company to exceed budgeted spending. For fiscal year budgets, the alert can be generated if the invoice exceeds the quarter-to-date, fiscal year-to-date, cumulative-to-date, total for quarter, total for fiscal year, or total for matter projection.
For phased budgets, Tracker sends an alert if the spending exceeds the budget for the current phase. For more information on over-budget auditing, see context-sensitive Help.
Over-budget auditing cannot be activated or configured anywhere other than the Matter Types (Templates) System Setup page.
Required role | Only a Company System Administrator can create a new matter type, and only a Tracker Coordinator can edit an existing matter type.
Specify that a firm is never required to enter a budget
Your company can specify that a particular firm is never required to enter a budget.
Required role | Only a company system administrator can change this requirement.
- SelectFirms > Our firmsin the left navigation.
- Select the firm whose profile you want to edit.
- From the toolbar, select the three small dots icon, then selectEdit Firm Profile.
- In the Firm Name Information About Firm collapsible section, forMatter Budget Requirement, selectNever required.
- On the toolbar, selectSave & close.
Lock a budget
After a budget is submitted, the budget can be edited by the authorized law firm user or by a designated budget reviewer at any time, unless the budget has been locked by the company.
- Open the relevant matter then clickBudget.
- UnderBudget Status, clickViewnext to the budget you want to lock.
- On the toolbar click the three small dots icon, then clickLock Budget. For a locked budget, this command changes to Unlock Budget.