Split an invoice between multiple debtors

Learn how to implement Split Billing in order to invoice multiple debtors in Smokeball.

How does Split Billing work?

Split Billing is a setting configured on a matter-by-matter basis that enables the ability to split invoices evenly or by a percentage with the debtors. This creates an invoice per debtor you can send to your clients.

Since each invoice is separately issued to each debtor, your clients will have a clear understanding of how much they should pay, along with a payment link.

Smokeball will keep track of the balances each debtor owes, and you can also send invoice reminders to them.

Turn on Split Billing for a matter

To enable Split Billing:

1. Open the matter in the Smokeball Web App.
2. Select Edit Matter from the right-hand side of the screen.
   
3. Under the Client / Contacts section, enter the name of up to three Debtors, then tick Invoice debtors individually (split billing).
   
4. Choose whether the invoices sent from this matter should be Split Evenly or By Percentage.
   
   • When choosing By Percentage, enter the percentage amount next to each debtor's name.
     
5. Choose one of the debtors from the Assign Remainder To drop-down list. This debtor will be billed the remainder of the invoice if the amount cannot be split evenly.
   
6. Select Save Matter at the bottom of the screen to save your changes.

How Split Billing works on an invoice

On a draft invoice

When Split Billing has been enabled on a matter, the Debtors/Clients section in a new draft invoice will be greyed out and the debtors will be automatically filled in with their respective split. If you need to change the debtors, you must delete the draft invoice and update the debtors on the Edit Matter screen.

The Show Evergreen Retainer Request and Show Account Summary tick-boxes will also be unselectable if Split Billing has been enabled on a matter.

Regarding discounts, surcharges and credit memos under Split Billing

• Discounts and Surcharges are applied to the overall invoice and can not be targeted to specific debtors.
• Credit Memos are encouraged for targeted discounts.

When previewing an invoice, select the debtor from the drop-down menu to preview that specific debtor's invoice.

The invoice number will also be appended with a letter suffix, e.g. Invoice Number 12345 will be called 12345-A for the first debtor and 12345-B for the second debtor.

To download all invoice variants issued to the debtors, select Download All.

On a finalised invoice

Once an invoice with Split Billing is finalised, a Debtor drop-down will appear on the top-right corner of the invoice panel in Smokeball. Use this drop-down to select which debtors' invoice you wish to view. This selection will also update the figures in the right-hand panel, the action buttons above the PDF preview, and the payments shown in the Payments tab for the selected debtor.

The contents of the invoice are consistent across all debtors, up until the Invoice Total. After the Invoice Total, it will be debtor-specific, including:

• The invoice total with their percentage applied
• The payments/credits applied towards their portion of the invoice
• Prior balances and payments of prior balances of that debtor for the matter, and;
• The interest for that debtor on this invoice and any prior balances

Invoice actions

The buttons on the invoice action bar above the PDF preview may be different for each debtor:

• Selecting Pay By Credit Card will allow you to record a credit card payment under the debtor's name.
• Selecting Email allows you to customise each invoice email to each debtor, denoted by tabs at the top of the Send Email window.
  
  You can also choose not to email some debtors by clicking on their tab and unselecting Email this debtor.
  
• Selecting the Download drop-down menu will allow you to either Download the current invoice in the preview, or Download All to download separate PDFs of each invoice sent to each debtor.
  
• Selecting the Edit button will display a message indicating if there are no payments on any of the debtor's portions. If the Edit button is selected and the split billing matter setting does not match the invoice, then a warning will display indicating to match the settings or void the invoice.
• Selecting the Waive button will waive the entire remaining balance of the invoice, not just the debtor's portion.

Viewing Split Billing invoices

On the list of invoices in a matter and the overall Invoices section of Smokeball, invoices that have been split between multiple debtors will appear with the names of the debtors and a split billing icon next to them. 

Split billing invoices show as a single invoice on the invoice lists and clicking on them will default to the first debtor's split invoice.

You can also view invoices and all payments by all debtors from the Invoice Ledger, accessible from the Transactions tab of a matter.

The following reports will display invoices with the allocated splits by debtor:

• Unpaid Invoices Report
• Invoice History Report
• Account Statement Report
• Ledger Export Report

Paying a Split Billing invoice

When you select Add Payment on an invoice with Split Billing applied to it, the Paid By field will automatically display the debtor selected from the Debtor drop-down menu on the top-right corner of the invoice.

Note: The Paid By field will be greyed out for money that's being applied from trust, operating retainer, and credit. It is able to be changed on all other payment types.

If you are adding a payment for a matter, you can choose which portion/s of the invoice will be paid and edit the Paid By field if applicable.

If you are adding a payment for a client/debtor, only that debtor's invoice portion will appear.

From the debtor's perspective in the eInvoice Portal, they will always see their own portion of invoices they need to pay. When they select Download on the eInvoice Portal, it will download the invoice specifically issued to them.

When the debtor select Pay Now, they can only pay for their portion of the invoice via the payment link. Payments apply to the debtor's oldest outstanding invoice on the matter. Non-split invoice, multi-debtor invoices are not included.

Important notes

• Bulk Actions are disabled on matters and invoices with Split Billing. This includes the Create Invoices, Finalise With Payments, and Bulk Trust Payment (Trust to Office) tabs.
• Prior balances will show on an invoice for that debtor. No shared debt (multiple debtor that is not split) will be included.
• When rounding a split invoice, remainders will be assigned to whomever is assigned in the matter settings. Rounding has these rules:
  • If the totals of the child invoices is over the amount of the parent invoice, remove a cent from each child invoice total until the sum is under the amount of the parent invoice and apply the remainder to the debtor designated for the remainder.
  • If the totals of the child invoices is under the parent invoice total, then add a cent to the contact remainder until it equals the parent invoice amount.