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Configuring Proforma Invoicing Requirements

A proforma invoice is an estimate or quote that is sent before the work is done or the products are shipped. The purpose is to ensure that the seller and customer agree on the details of their arrangement, including the cost.
In the UK and EU, proforma invoicing is helpful because a tax invoice cannot be simply adjusted if it is incorrect. If something is incorrect in a tax invoice, a credit note must be created and the process repeated, which requires additional paperwork and creates extra work for users. When proforma functionality is enabled, Tracker validates tax invoices when posted against an approved proforma.
Company System Administrators have control over how the proforma invoice module is enabled and enforced within Legal Tracker, including the option to allow users to be able to review and modify invoices prior to submitting the tax invoice. By default, the proforma module is not enabled. The first step is to enable the proforma module in Tracker Settings. You will have the option to enable proforma invoice modifications.
Enabling modifications lets companies edit proforma invoices during the review process (similar to tax invoices), and sends notification of those changes back to the firm. If modifications are enabled, invoice-level adjustments are available to the company reviewer for LEDES and non-LEDES proforma invoices. Fee line item and expense line item adjustments are available for LEDES invoices.
After enabling the module, you must require proforma invoices at the company level or the billed-to entity level.

Turn on Proforma Invoicing

  1. Select
    Settings
    in the left navigation.
  2. In the
    e-Billing & Financial Setup
     section, select
    Miscellaneous Financial Options
    .
  3. In the
    Proforma Invoices
     section, select the
    Yes
    button.
  4. If you want to allow modifications to proforma invoices, select the Yes button next to
    Enable Proforma invoice modification
    .
  5. On the toolbar, select
    Save & close
    .
Next, turn on the requirement for proforma invoicing either at the company level or via the billing entities assigned to matters.

Require Proforma Invoicing at the Company Office Or Region Level

When this setting is enabled, Tracker checks if the Lead Company person assigned to a matter is allocated to an office or region where proforma invoicing is required.
  1. Select
    Settings
    in the left navigation.
  2. In the
    Company Setup
     section, select
    Company Offices
    .
  3. Select the company from the list.
  4. On the toolbar, select
    Edit Company Office/Region
    .
  5. In the
    Proforma invoices section
    , select the
    Proforma invoices required for this office
    checkbox.
  6. On the toolbar, select
    Save & close
    .
To Check if Proforma Invoicing is Enabled for an Office
Select
Users > Office List
 in the left navigation. The
Proforma Required
 column shows whether proforma invoicing is required for this office or region.

Require Proforma Invoicing at the Billing Entity Level

Enabling this setting following this procedure enforces the proforma workflow for all matters and invoices that use the selected billed-to entity. Law firms must submit a proforma invoice that must subsequently be approved by the Company before submitting a tax invoice.
  1. Select
    Settings
    in the left navigation.
  2. In the
    Matters Setup
     section, select
    Matter Fields & Help Files
    .
  3. Scroll down to the
    Invoice Processing Information
     collapsible section.
  4. Next to
    Billed to Entity
    , select
    Edit Values
    .
  5. On the toolbar, select
    New value
    .
  6. Check the
    Proforma invoices required
     checkbox.
  7. Enter the information about the entity in the fields provided.
  8. On the toolbar, select
    Save & close
    .
To Check if Proforma Invoicing is Required for a Billed-to Entity
  1. Select
    Settings
    in the left navigation.
  2. In the
    Matters Setup
     section, select
    Matter Fields & Help Files
    .
  3. Scroll down to the
    Invoice Processing
     collapsible section.
  4. Next to
    Billed to Entity
    , select
    Edit Values
    . The description indicates if proforma invoicing is required.

This article applies to:

  • Product: Legal Tracker
  • Subject: Invoices
  • Audiences: Company