Partial Payment Allocations

In Smokeball, you have the option to allocate partial payments proportionally across time, fees and expenses, or instead, you may wish to have partial payments apply to expenses first, for the following reasons:

• To prioritize expense reimbursement, so your firm is not paying out-of-pocket for an expense incurred on behalf of the client.
• To avoid misrepresenting income by preventing payments from being applied to billable hours prematurely.
• To prevent overcompensation and inflated bonus calculations that can occur when payments are applied to fees instead of expenses.

Setting your firm's Partial Payment Allocation option

1. Open the Smokeball Web App.

2. Select the Settings (gear) icon on the bottom-left corner of the screen, then select Firm Settings.

   

3. Select Accounts from the left menu, then select the Payment Allocations tab.

   

4. Choose the Partial Payment Allocation relevant to your firm:
   • Pay all line items proportionally - partial payments are applied evenly across time, fees and expenses. For example, an invoice with $100 fees and $100 expenses has a $100 payment applied to it. This will apply $50 to fees and $50 to expenses.
   • Pay expenses in full before time/fees - For example, an invoice with $100 fees and $100 expenses has a $100 payment applied to it.  This will apply $0 to fees and $100 to expenses.
     • The order in which partial payments are allocated under this option are as follows:

       1. Expense - hard cost

       2. Expense - soft cost

       3. Proportional timekeepers

       4. Surcharge

       5. Interest

5. Select Save.

Where to view Partial Payment Allocations

Partial Payment Allocations are currently only reflected in the Income Allocation - Summary and Income Allocation - Details Reports. 

Frequently Asked Questions

If I switch between options, will all past payments be impacted?

No, invoices are set with the option saved as of invoice finalization. If you wish to switch the allocation of a payment on an invoice, you must reverse any partial payments, edit, then re-finalize the invoice and re-apply the payment.

Will QuickBooks Online match the income allocation reports if I choose to have expenses paid first?

Yes, QuickBooks Online journal entries will reflect the Partial Payment Allocation setting selected.

How are fees distributed amongst timekeepers?

Fees will still be applied proportionately amongst timekeepers in the Income Allocation reports.

Will any custom reports be updated to reflect this change?

No existing custom reports will be updated, but any new ones built will use this feature.