Client and vendor agree to an hourly rate (e.g., $200) for all timekeepers on a matter. The rate may be defined in a supplier agreement or similar and may follow the term of the agreement or be set to not expire.
The blended rate is setup by the client during the vendor assignment to matter process within the system, the vendor can see this on the Billing Authorization for the matter within their account.
When this fee arrangement is selected for a vendor assigned to a matter, the expectation is that any timekeeper billing on the matter will use this rate. Depending on client specific requirements, if the effective rate on an invoice does not equal the blended rate, one of 4 things will happen:
- BilliingPoint will auto-adjust the line item down to equal the blended rate, if billing a rate higher than the agreed blended rate.
- BilliingPoint will auto-adjust the line item rate up or down to equal the blended rate, if billing a rate higher or lower than the agreed blended rate.
- BillingPoint will fail the invoice if any fee line item bills above the blended rate.
- BillingPoint will place a warning on the invoice if any fee line item bills above the blended rate.
If it is a VAT invoice, then no adjustments are allowed and system must warn or auto-reject the invoice.