Split Billing

Smokeball offers split billing as a way to split invoices evenly or by a percentage with the debtors on a matter. If you choose to use split billing, you will generate an invoice per debtor. The balance owed by each debtor will be tracked, and you can easily send reminders to debtors when needed.

To use split billing on a matter:

1. Select the Edit Matter button.
2. Select the Client/Contacts quick link.
3. Check Invoice debtors individually (split billing).
   • You can then toggle between splitting evenly or by percentage. The by percentage option can go to the hundredth of a percent. 
4. If the invoice cannot be split evenly, you can assign the remainder to a third debtor using the dropdown menu.

Important Notes

• You can split between a maximum of three debtors.
• Multiple debtors must be assigned to the matter before split billing will be enabled.
• We recommend using the split evenly option if the matter has three debtors.

Invoices and Split Billing

The debtors are locked after you create a draft invoice. The split, whether evenly or by percentage, will be displayed next to each debtor. If you need to change debtors at this point, you will first need to delete the draft and then change the debtors assigned to the matter. Discounts and surcharges will be applied to the overall invoice and cannot be directed to a specific debtor. We suggest using a credit memo if you wish to provide a targeted discount to a debtor. 

In addition, two common invoice options will be disabled if it is split:

• Show Evergreen Retainer on Invoice
• Show Account Summary

When you preview a split invoice, you will have the option to switch between each debtor's draft invoice by using the dropdown menu in the upper left of the PDF window. A spit invoice will have a letter suffix after the invoice number. You can select Download All to download a PDF copy of each debtor's invoice.

Before finalizing the invoice, you can select the blue contact review link to apply money and credits on the matter to the debtors' portion of the invoice. You will not be able to auto-allocate payments to invoices generated by split billing. The allocated amounts will display on the right panel of the draft screen. You can switch between debtors using the drop-down menu.

Finalized invoices created by split billing

A debtor drop-down menu is also available on the finalized invoice screen in the upper right corner. Switching between debtors will change the finalized PDF along with corresponding information in the right panel and Payments tab.

The finalized invoice will be the same for each debtor up through the Invoice Total. Lines after the Invoice Total will display debtor-specific information, such as their percentage applied to the invoice, any payments/credits applied to their portion of the invoice, prior balances and payments of prior balances by the debtor to the matter, and the interest the debtor has accrued on this invoice or prior balances.

Several buttons on the finalized invoice screen are modified when the invoice is generated by split billing. The Download button includes both a download all option or download the debtor-specific invoice. 

Waiving an invoice generated by split billing will apply to the entire remaining balance of the invoice; you cannot waive the debtor's portion.

If you select the Pay by Credit Card button, the payment will only apply to the selected debtor.

The Edit button will only display if there are no payments on any of the debtor's portions.  You will also see a warning if you select the Edit button and the split billing matter setting does not match the invoice. You will need to either match the matter settings or void the invoice if this happens.

Applying payments to invoices generated by split billing

Split invoices will also have debtor-specific Payment Details. When selecting the Add Payment button on a finalized invoice (as seen in the above screenshot), you can use the Debtor dropdown menu to apply payments to their portion of the invoice. By default, this dropdown menu will display whoever is selected using the debtor dropdown menu on the finalized invoice screen. The Paid By field in this window will be greyed out if money is being applied from trust, operating retainer, or credit. You can interact with this field, however, for other payment types.

Another option is to select the Add a Payment button from the matter's invoices section. With this option, you can apply multiple payments to any portion of an invoice generated by split billing if you select the Matter toggle on the Add a Payment window. If you select the client/debtor toggle, then you will only see the debtor's invoice.

Email, eInvoices, and split billing

When you select the Email button on a finalized invoice generated by split billing, the Send Email window will separate the debtors with tabs. The Email this debtor option will be toggled on for the debtor who was selected on the finalized invoice screen. You can toggle this option on for other debtors by navigating to their respective tabs.

The debtor will then see their portion of the invoice on the eInvoice portal. They can also select download their specific invoice.

They can also only pay their portion of the matter's outstanding balance when selecting a payment link, and payments will apply to the debtor's oldest outstanding invoice on the matter. Multi-debtor invoices which have not been split will not be affected. 

Reviewing split billing invoices in a matter or contact

Invoices which have been split will appear as a single invoice on both the matter and global Invoices view. However, they will be distinguished from other invoices by the split billing icon. If you select one of these invoices, by default you will see the first debtor's invoice.

Split billing invoices displayed on the contact's invoice ledger will display the debtor's portion and will include the letter suffix next to the invoice number. Selecting the invoice from this view will show the debtor's split invoice.

The matter's Transactions tab will allow you to filter by the debtors listed on the matter using the dropdown menu in the left panel and obtain an outstanding balance. You can select the View Statement button to generate an Account Statements Report that will either include the matter (if all debtors is selected) or the contact (if an individual debtor is selected).

Additional Tips

• Bulk actions are disabled on matters and invoices with split billing. 
• Invoices generated by split billing cannot be added to the Client Statements report.
• Invoice reminders will be specific to the debtor's matter balance.
• The Unpaid Invoices, Invoice History, Account Statement, and Ledger Export reports have all received updates to account for split billing functionality.