How to Bill to a Third Party in Matters.Cloud

How to Bill to a Third Party in Matters.Cloud

Introduction

In Matters.Cloud, third-party billing is used when you need to raise an invoice to a parent company, agent, or any other third party that differs from the client to which a matter belongs. This feature ensures that billing information, tax details, and compliance steps are properly managed.

Create a Third Party as a Client

Each third party must be created as a separate client record to ensure billing information, tax details and compliance steps are followed. 

Steps:
  1. Go to the Clients section in Matters.Cloud.
  2. Click on the Add New Client button.
  3. Fill in the necessary details for the third party, including billing information and tax details.
  4. Save the client record.
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This step applies even if the third party does not have any matters which are 'owned' by them.

Setting a Default Payable By on Each Matter

  1. Go to the "Matters" section and locate the specific matter you want to set a default third-party payer for.
  2. Click on the matter to open its details page. Select "Edit" to modify the matter settings.
  3. Look for the "Payable By" field within the matter details. From the dropdown menu, select the third-party client you set up previously. This selection will automatically designate them as the default payer for all billable items on this matter.
  4. Once you've selected the third-party payer, click "Save" to apply your changes.
Now, each invoice generated for this matter will automatically be directed to the selected third-party client for payment, streamlining billing workflows and ensuring the correct party is billed.

Create an Invoice to a Third Party

When creating a new invoice, the "Payable By" field will default to the client specified on the matter, but this can be overridden by the user if needed. This allows you to assign a different client as the payer for the invoice, regardless of the client that owns the specific matter.

Steps:

  1. Click on the Create Invoice button.
  2. In the Payable By section of the invoice creation form, select the third-party client you have set up. This selection will override the default and assign the selected third party as the payer for this invoice.

This flexibility ensures you can manage complex billing scenarios where different clients may need to cover specific costs.

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Note: If you raise a multiple-matter invoice, the invoice will default to the "Payable By" setting on the primary matter selected in the invoice. Make sure the correct primary matter is chosen to ensure the appropriate client is billed.

Review an Send Invoice

Steps:
  1. Ensure all details on the invoice are correct, including the billing address, tax details, and the amount.
  2. Once reviewed, send the invoice to the third party using either the Send via email, or Mark as complete buttons.
InfoNote: If you're integrating with a third-party cloud accounting solution, the "Payable by" details specified on the invoice will be used to populate the recipient information in the accounting platform. Be sure to verify that the correct third party is set in the "Payable by" field before creating the invoice.