Understanding the Time Write Off Process

Understanding the Time Write Off Process

Introduction

When managing matters, there may be instances where time needs to be written off before closing a case. Matters.Cloud provides two key methods to handle this process effectively, ensuring accurate financial reporting and transparency. This guide outlines the available options for writing off time and the necessary permissions required to perform these actions. Whether adjusting time entries directly within a matter or managing them at the invoicing stage, these steps will help streamline the process and maintain accurate records.

Option 1: Mark Time Entries as Non-Billable

One way to write off time is by changing the status of time entries to non-billable. This ensures that the recorded time remains visible for internal tracking but is not included in client invoices. Follow these steps to mark time as non-billable:

Step 1: Navigate to the Matters Section
  1. Locate the main navigation menu on the left-hand side of the dashboard.
  2. Click on Matters to view all matters of your firm.
  3. Use the search bar under the filter option or scroll through the list to find the matter you wish to close, where unbilled hours exist.
Step 2: Select the Time Entries to Write Off
  1. Click on the Time tab to view all time entries.
  2. Click on WIP (Work In Progress) to view all unbilled time entries.
Step 3: Tagging Time Entries as Non-Billable
  1. Click the edit icon under the Actions column.
  2. In the Billable Status section, click the dropdown and select Non-billable.
  3. Click the Submit button in the bottom right-hand corner to save your changes.
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Note: This function is enabled by the ‘Edit multiple time’ permission on the associated user role. Ensure the necessary permissions are granted to the relevant users.

Option 2: Write Off Time at the Invoicing Stage

If you prefer to handle time write-offs during invoicing, you can set time entries to a billed amount of zero and mark them as hidden if they should not appear on the invoice. Follow these steps to adjust time entries on an invoice:

Step 1: Access the Invoices Section
  1. Locate the main navigation menu on the left-hand side of the dashboard.
  2. Click on Invoices > All Invoices to view all invoices of your firm.
  3. Use the Filter option in the top-right corner and select Draft to access draft invoices.
Step 2: Select the Invoice Associated with the Matter
  1. Use the search bar under the filter option or scroll through the list to find the invoice.
  2. Select the invoice associated with the matter you want to close.
Step 3: Set the Billed Amount to Zero
  1. Click the Time tab on the invoice page.
  2. Click the Edit button for the time entry you wish to write off.
  3. Set the Amount to Bill to 0.
Step 4: Hide Time Entry from the Invoice
  1. Toggle the button under the Hidden section.
  2. Click the Submit button in the bottom right-hand corner to save your changes.
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This method allows the firm to maintain a record of time entries while ensuring they do not impact client billing.

Conclusion

By using either of these two options, firms can effectively manage time write-offs based on their internal processes and financial policies.

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