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Understanding Billing Definitions
Billing definitions are the foundation of Tamarac’s powerful billing engine. Billing definitions define the billing method (arrears or in advance), the billing cycle, prorations, rate tiers, adjustments, minimum fees, service tax amounts, and more. Tamarac uses these definitions combined with the billable value of the billing group to calculate management fees.
Creating a billing definition is the first step in setting up your billing process in Tamarac. You can create as many billing definitions as you need. Most firms assign one billing definition to a billing group, but you can assign multiple definitions to a single group if appropriate.
Tamarac generates an individual billing statement for each definition assigned to a group. For example, if you assign both Billing Definition A and Billing Definition B to a group, you'll get one billing statement for Billing Definition A and a separate one for Billing Definition B.
We recommend that you give each billing definition a descriptive name that makes it easy to understand later. For example, a basic quarterly definition with a tiered structure starting at a rate of 1% might be called Quarterly 1%.
In this short video, you'll learn about billing definitions in Tamarac.
| Related Topics | Details |
|---|---|
| Create, Edit, or Delete a Billing Definition | Learn the steps for how to create, edit, copy, or delete a billing definition. |
| Workflow: Set Up Billing | This workflow covers all the steps for getting billing set up initially. |
| Workflow: Run Billing | This workflow covers the steps you take every time you run billing, such as at the quarter or month end. |
| Billing Definitions Settings | Get a list of all the available settings and links to pages about what each setting does. |
| Understanding Billing Groups | Learn how billing groups work and when to use them. |
Once you've created billing definitions, you assign them to the applicable billing groups. Tamarac uses billing definitions to determine the total billed amount when you generate billing history.
In the billing definition, you define the following elements that will be applied to the fee calculation:
Basic information about the billing definition such as the billing cycle, minimum fee, adjustments, etc.
Various prorations, including based on flows, for new groups, and more.
Rates and rate tiers, including bill at a single rate, tiers based on categories or value, and percentage or flat fee tiers.
Some portfolio accounting system billing definitions can be brought into Tamarac directly. Contact your Service Team to see if this is possible for your firm.
You can also create billing definitions manually within Tamarac. For more information on how to create billing definitions, see Create a Billing Definition.