This video will walk through how to enter hard and soft cost expenses into Practice Pro.
Video Transcript:
In this video, we'll walk through how to enter soft cost expenses and hard cost expenses into the system.
First, let's add a soft cost expense.
Soft costs are expenses that are charged to the client, but a direct payment is not made to a vendor.
Soft cost expenses include items like photocopies, postage, mileage, or other indirect costs.
To begin, click the Quick Add icon in the top navigation bar.
From the menu select Expense.
This opens the expense entry form.
Select the member responsible for the expense.
The system auto populates this field with the currently logged in user, but you can change it if needed and if your security permissions allow.
Next, select the cost type from the drop down.
Choose Soft Cost, then select a bill type.
You can choose Fixed Rate where you enter the total amount directly or Quantity rate where you enter a quantity and a per unit rate.
The system will calculate the total for you.
Now complete the required details.
Select the client and the matter.
Select the soft cost type.
If an additional description is required, add it in the description field.
For a fixed rate, soft cost, enter the amount.
For a quantity rate soft cost, enter the quantity.
The rate is being pulled from the firm settings for this specific soft cost, but it can be updated here with appropriate security access.
Enter the date of the expense.
You can upload supporting documents such as receipts or invoices.
This is especially useful for record keeping and audits.
When all fields are complete, click Save.
Your soft cost expense is now recorded.
Now let's walk through entering a hard cost expense.
Hard costs are expenses that are charged to the client and involve a direct payment to a vendor.
Hard cost expenses include items like court filing fees, expert witness fees, deposition transcripts, or other third party charges incurred on behalf of the client.
At the top of the screen, click the Quick Add icon in the top navigation bar.
From the drop down menu, click Expense.
Select the member responsible for the expense.
The system auto populates this field with the currently logged in user, but you can change it if needed and if your security permissions allow.
Next, complete the required details.
The Expense type will default to Client and is typically always left as Client.
The Bill type will default to Fixed Rate, but you can select Quantity Rate if needed.
The Cost type will default to Hard Cost.
Enter the client in the matter.
Select the vendor from the drop down list.
If your vendor is not in the drop down list, a new vendor will need to be added.
If your security permissions allow it, a new vendor can be added directly from the vendor drop down.
If not, request that accounting staff add the vendor.
Enter the vendor invoice number if you have one.
Add a description of what the expense represents.
Enter the date of the expense.
Enter the amount for a fixed rate or the quantity for a quantity slash rate expense.
You can upload supporting documents such as receipts or invoices.
This is especially useful for record keeping and audits.
When all fields are complete, click Save.
Your hard cost expense is now recorded.
You can find your saved expenses in several places on the Time and Expenses page, under the client's Charges tab, and under the Matters Charges tab.
This concludes this video on adding hard and soft cost expenses to the system.