Rates and Rate Hierarchies

Billing clients is not always simple. It depends on who they work with, how long or loyal a client they have been, what type of time and resource commitment that particular matter has been, and more. Clio’s flexibility comes in handy, enabling you to charge clients as you need. When capturing time in Clio Manage, you can set specific rates for a variety of reasons or scenarios. These rates have a hierarchy that affects which rate will override the others in the event of conflicting rates. The rate hierarchy is as follows, from highest, or what takes priority, to lowest:

1. Custom rate
2. Fixed rate
3. Matter-based rate
4. Client-based rate
5. Activity category custom rate
6. User default rate

Set custom rate

You can set a custom rate by manually adjusting the Rate field when creating a new time entry. This action will override all other rates previously set.

Apply fixed rate

You can create a fixed rate for matters where you are charging a fixed rate for the case. Perhaps this is something your firm does for all will and estate planning cases if the time commitment is generally the same client-to-client. This feature automatically creates time entries and bills for the fixed rate and tracks time at 0.00/hr (in the currency relevant to your firm or the matter). That way, your time is still being measured without an amount attached to each minute or expense, unless desired. 

Set matter-based rate

The matter-based rate can be specified when editing a matter. When you select a matter while creating a time entry, the rate field will automatically update to reflect the matter rate. To set a matter rate:

1. Create a new matter or edit an existing matter.
2. Scroll down to Billing preferences.
3. Select Hourly and click Add a custom rate.
   Note: If the firm uses multiple currencies, you can select a currency for the rate
4. You can specify a rate for a specific user, a group, or the entire firm for this matter.
5. Click Save matter.

Set client-based rate

The client-based rate can be specified when editing a contact. When you select a contact while creating a time entry, the rate field will automatically update to reflect the client rate. To set a client rate:

1. Create a new contact or edit an existing contact.
2. Scroll down to Billing preferences.
3. Under Hourly billing, click Add a custom rate.
   Note: If the firm uses multiple currencies, you can select a currency for the rate
4. You can specify a rate for a specific user, a group, or the entire firm for this matter.
5. Click Save contact.

Set activity category custom rate

You can set a custom hourly rate or fixed rate for activity categories when creating or editing activity categories. Activity categories with fixed rates will override all rates except custom rates that are set when creating a time entry. Learn more about creating and editing activity categories in this article.

Set user default billing rate

The user default rate is the rate used throughout Clio Manage for time entries for that user. This default is the lowest in the rate hierarchy, meaning that it will only be used if no other defaults (Custom rate, Flat-fee rate, Matter-based rate, Client-based rate, Activity category custom rate) have been applied.

Learn how to set or change user default billing rates here.