eProcureAI / Platform / Professional services

Industry

Rebillable cost should not
need reconstructing

If a cost is rebillable, somebody has to know which client it belongs to. Capturing that at the request is the difference between clean rebilling and a monthly argument with a spreadsheet.

Client and matter at source. Everything downstream depends on it.

Client costRaised against a matter
The situation

Unbilled cost is usually uncoded cost

In professional services the question is rarely whether a cost was reasonable. It is whose cost it was.

A cost incurred for a client and coded to overheads is money the firm absorbed for no reason. It happens constantly, and it happens because the coding was done later by somebody who was not there when the commitment was made.

The person ordering knows the client and the matter with complete certainty at that moment. A week later they know it less well. A month later, when finance is preparing bills, the information exists only as a best guess.

Coding is not an accounting task

Treating client coding as something finance does at month end guarantees a proportion of it is wrong. Capturing it on the request moves it to the only person who genuinely knows, at the only moment they are certain.

Everything downstream then works. The invoice matches to an order that already carries the client and matter. Rebilling comes off the record rather than out of a reconstruction. When a client queries a disbursement, the backup is attached to the transaction.

Subcontractors are the other exposure

Engaging an expert or a subcontractor without a scope attached and a rate confirmed against the agreement is how firms end up disputing invoices they cannot easily challenge. Requiring both at the request costs a minute and prevents the argument.

Where rebilling breaks

Four failure points, all before the bill

Point 1

The cost was never coded

Ordered without a client or matter, so it defaults to overheads and is never recovered.

FixCoded at the request
1
Point 2

It was coded to the wrong matter

Allocated later from a date and a supplier name, which is a guess dressed as a process.

FixSelected by the person ordering
2
Point 3

Nobody knew if it was rebillable

The engagement terms allow it, but the person coding at month end had no way to know.

FixDeclared at the request
3
Point 4

The backup went missing

The client queries a disbursement and the supporting document is in somebody's email.

FixAttached to the transaction
4
What changes

Three things that make the bill defensible

Client and matter captured at source

Selected by the person placing the order, at the moment they are certain, rather than allocated afterwards by somebody who was not involved.

  • Client and matter selected on the request
  • Rebillable status declared upfront
  • Carried through to order and invoice
  • No month end allocation exercise
At the requestLive
ClientSelected
MatterSelected
RebillableDeclared
Allocated laterNo
Known at the momentNot reconstructed

Subcontractor engagements carry a scope

A rate confirmed against the agreement and a scope of work attached before the engagement starts, which is what makes a disputed invoice straightforward rather than awkward.

  • Rates checked against the agreement
  • Scope of work attached at the request
  • Dual approval above your threshold
  • Variations routed rather than absorbed
SubcontractorLive
RateFrom the agreement
ScopeAttached
Above thresholdDual approval
VariationsRouted
Agreed upfrontRather than argued later

Matter budgets are visible while they matter

A partner seeing committed cost against a matter can act. Seeing invoiced cost after the engagement is a write off conversation.

  • Committed against the matter at approval
  • Partner visibility without asking finance
  • Alerts before a matter budget is exhausted
  • Write offs become avoidable rather than routine
Matter positionLive
BudgetSet
InvoicedLower
CommittedHigher
Partner seesThe real number
Write off riskReduced
While it can be acted onNot afterwards
Cost categories

Four kinds of spend, handled differently

The coding requirement differs, which is why capturing it at the request matters more here than in most sectors.

CategoryTypically rebillableWhat must be capturedRisk if it is not
Client disbursementsYesClient, matter and backup documentAbsorbed into overheads and never recovered
Subcontracted expertiseUsuallyClient, matter, scope and agreed rateDisputed invoices that are hard to challenge
Firm overheadsNoDepartment and charge codeMiscoded to a client and later written off
Business developmentNoCost centre and purposeBlurred with client work, distorting matter margin

The most expensive mistake is a rebillable cost coded as overhead, because nothing later in the process ever surfaces it.

Subcontractor control

Six checks worth making before engagement

Rate

Against the agreement

Confirmed from the rate card rather than accepted from an invoice afterwards.

SourceThe agreement
Scope

Attached at the request

A written scope is what makes a disputed invoice a short conversation.

AttachedBefore starting
Conflicts

Checked before engaging

Relevant in professional services in a way it is not elsewhere.

CheckedAt request
Insurance

Professional indemnity

Tracked to expiry like any other supplier document.

TrackedTo the date
Threshold

Dual approval above a figure

Larger engagements pick up a second approver automatically.

AppliedBy rule
Variations

Extra scope

Routed for approval rather than absorbed into the original engagement.

RoutedAbove threshold
Who does what

The short version of everyone's job

Everything about clean rebilling depends on one selection made by the right person at the right moment.

What fee earners do

Select the client and matter when ordering. That is the entire additional ask.

The human partLive
Fee earnerSelects client and matter
Fee earnerDeclares rebillable
PartnerApproves against the matter
FinanceBills from the record
One selectionAt the moment of ordering

What eProcureAI does

Carries the coding through and keeps the matter position current.

The automatic partLive
Carry client and matterRequest to invoice
Check the rateAgainst the agreement
Commit at approvalAgainst the matter
Attach the backupTo the transaction
Support rebillingFrom the record
No allocation exerciseAt month end
0client and matter captured by the person ordering
0whether a cost is rebillable
0visible against the matter before invoices arrive
0backup documents held with the transaction
FAQ

Questions people actually ask

How does client coding stay accurate?
It is selected on the request by the person placing the order, when they know it with certainty, then carried through to the purchase order and the invoice. Nothing is allocated at month end.
Can one purchase be split across matters?
Yes, at the request rather than corrected afterwards, which removes the most common source of coding error.
How is rebillable status handled?
Declared on the request, so finance knows at billing time rather than having to interpret the engagement terms for every transaction.
What stops subcontractor invoices being disputed?
A rate confirmed against the agreement and a scope of work attached before the engagement starts. Both take a minute at the request and prevent a much longer conversation later.
Can partners see committed cost on a matter?
Yes, at approval rather than when invoices arrive, which is what makes a write off avoidable rather than something discovered afterwards.
What happens when a client queries a disbursement?
The backup document is attached to the transaction along with who approved it and why, so the answer is a lookup rather than an email search.
Do fee earners have to learn a procurement system?
They select a client and a matter and press submit. Raising a request takes about two minutes and there is no training day.
Does this work for firms billing on fixed fees?
Yes. Matter budgets and committed cost matter more under fixed fees, because the margin is yours rather than the client's.

Bring a matter with messy disbursements

We will trace where the coding broke and show what capturing it at the request would have changed.

Book your free demo

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