In Legalsense it is possible to enter a budget for each matter. A budget can be desirable for several reasons a.o. to see if a matter is still in line financially.
Adding a budget
1. Go to 'Clients' - 'Matters'
2. Select the applicable matter and choose 'Add Budget'.
3. The form below opens
The budget can be based on:
- Hours (all hours or billable only)
For the budget type 'Amounts' there are 2 options:
- Expected amount
- Virtual amount
With 'Expected amount' a budget amount has to be specified based on the pricing scheme as it is set on the matter. The budget that is 'Used' is everything that has already been invoiced and the WIP is calculated at the rate schedule that is selected.
In case of 'Virtual amount' the budget is determined based on the hourly rates as they are set for the employees. The budget that is 'Used' is calculated based on all work at the hourly rate, ignoring any discounts and deductions.
It is also possible to show a budget warning when 80% and 100% of the budget is reached.
80% budget reached
100% budget reached
To enable these notifications click the checkboxes next to the `Notify timekeeper` and/or 'Notify matter supervisor`. When logging in the budget alert is visible and it remains until it is clicked away.
Please note that from Legalsense, no further blocking is added to the matter. It is now up to the matter supervisor or firm to decide what the next steps for the matter should be (analyze deviation, adjust budget, renegotiate with client etc.)
4. Click 'Add Budget' and the budget will be added to the matter.