Define acceptance before calculating cost
In this guide, accepted means the firm’s designated reviewer has recorded a decision to accept a matter. Delivery, a connected call, a signed agreement, and onboarding are separate events. Your firm should document its acceptance definition and apply it consistently across suppliers.
The basic formula is: supplier cost per accepted case = (attributable supplier charges − confirmed applicable credits) ÷ unique accepted matters. The numerator and denominator must refer to the same cohort and reporting date.
Create one cohort of unique delivered matters
A practical cohort is every unique matter first delivered during a calendar month. Record a stable matter identifier, first delivery date, supplier, delivery model, and the criteria version that applied. Choose a rule for duplicates and replacements before producing the report.
Count a matter once even if the packet is updated or resent. If a replacement is a different matter, link it to the original and show its treatment explicitly. Do not count a free replacement as an extra paid unit or erase the original review record.
Keep later acceptance decisions attached to the original delivery cohort. A report built from this month’s spending and this month’s acceptances across unrelated delivery periods will not measure a consistent acquisition group.
Reconcile charges, credits, and internal work
Include supplier charges attributable to the cohort, including setup or other fees when applicable. If a fee spans multiple periods, document the allocation rule and apply it consistently. Report the calculation on a charges basis; payment timing can be shown separately.
Subtract only confirmed applicable credits or refunds, counted once against the relevant charges. Keep requested, disputed, and unconfirmed credits in a separate field. If an invoice already includes a credit, do not subtract it again.
For a broader measure, add attributable intake labor and other acquisition expenses. Show what is included and how it was allocated. Keep supplier-only and broader costs separately labeled so a reader can compare equivalent measures.
Worked example: a hypothetical delivery cohort
The following invented figures demonstrate the method. They are not CaseLead prices, customer results, or forecasts. Assume all listed charges relate to the same 20 unique matters and all amounts are in US dollars.
| Cohort item at the first report date | Hypothetical value |
|---|---|
| Unique matters delivered | 20 |
| Accepted | 12 |
| Declined | 5 |
| Pending review | 3 |
| Supplier delivery charges | $29,000 |
| Allocated supplier setup fee | $1,000 |
| Total attributable supplier charges | $30,000 |
| Confirmed applicable credits | $3,000 |
| Additional requested credit, not confirmed | $1,000 |
| Net supplier cost | $27,000 |
| Attributable intake labor | $3,600 |
Reproduce the first report
First reconcile the review statuses: 12 accepted + 5 declined + 3 pending = 20 unique delivered matters. Signature status is a separate field and is not added to those mutually exclusive review statuses.
Net supplier cost is $30,000 − $3,000 = $27,000. The additional $1,000 requested credit is excluded because it is not confirmed. Supplier cost per accepted case is $27,000 ÷ 12 = $2,250.
Broader acquisition cost including the stated intake labor is ($27,000 + $3,600) ÷ 12 = $2,550 per accepted case. The accepted share of all delivered matters is 12 ÷ 20 = 60%. Of the 17 matters with a completed review, 12 ÷ 17 is approximately 70.6%; label that resolved-review rate separately. Neither percentage resolves the three pending matters.
Update the same cohort as reviews mature
Suppose two pending matters are later accepted and one is declined. The same cohort now contains 14 accepted, 6 declined, and none pending. Suppose the additional $1,000 credit is also confirmed and the firm records another $400 of attributable intake labor.
Confirmed credits now total $4,000, so net supplier cost becomes $30,000 − $4,000 = $26,000. Supplier cost per accepted case is $26,000 ÷ 14 = $1,857.14, rounded to cents. Total intake labor is $4,000, making the broader cost ($26,000 + $4,000) ÷ 14 = $2,142.86.
Preserve both dated snapshots. The difference reflects later review decisions, a confirmed credit, and additional labor. It does not demonstrate a change in supplier performance between two delivery periods.
Keep pending decisions out of the accepted denominator
Pending matters are unresolved, not accepted or declined. Show their count, age, and next review owner. State whether the reported cost is provisional and schedule the next cohort update using the firm’s review process.
If you model what would happen if pending matters were accepted, label the result as a scenario and keep it separate from actuals. Do not place forecast acceptances in the reported denominator. Similarly, do not assume every pending credit will be approved.
If there are no acceptances, report an undefined cost
When accepted matters equal zero, cost per accepted case is undefined. Do not report $0, divide by delivered matters as a substitute, or insert a placeholder acceptance. Show net spend and the accepted, declined, and pending counts instead.
For example, a hypothetical cohort with $5,000 net supplier cost, zero accepted, two declined, and three pending should read: “Cost per accepted case: undefined; $5,000 net supplier cost; 0 accepted, 2 declined, 3 pending.” If later reviews produce acceptances, update that same cohort.
Keep an audit trail a second reviewer can follow
A useful report links the summary to matter records and cost entries. A second person should be able to reproduce the counts, allocations, and credits without guessing what an invoice line or status means.
- Cohort identifier, delivery window, reporting date, and acceptance definition.
- Unique matter ID, first delivery date, current review status, decision date, and reason.
- Charges, fee allocation, confirmed credits, open credit requests, and supporting references.
- Supplier-only formula, separately stated internal costs, rounding rule, and dated revisions.
Use the metric for the decision it can support
Cost per accepted case helps compare acquisition arrangements when handoff stages and billing triggers differ. Read it alongside cohort size, pending reviews, criteria, and internal workload. Differences in case profile or review timing can make two numbers poor comparisons.
Track recovered fees, case expenses, and time to payment separately when assessing longer-term economics. Keep the accepted-case calculation tied to the cohort and review date so your team can compare acquisition decisions consistently.
Questions law firms ask
Should pending cases be counted as accepted?
No. Keep them in a separate pending category until the firm records a decision. Report cost as provisional when unresolved reviews could change the denominator.
Can we subtract a credit we have requested?
Keep requested credits separate until confirmed. Subtract an applicable confirmed credit once, ensuring it has not already reduced the charge total.
Is cost per accepted case the same as cost per signed case?
No. Signed and accepted are different events. Calculate each using its own defined denominator and label them clearly.
Does a lower cost per accepted case prove better profitability?
No. Profitability also depends on subsequent revenue, timing, case expenses, and other costs. Acceptance-based acquisition metrics do not establish those outcomes.
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