This video will train you on setting up & using LEDES Billing
Video Transcript:
In this video, we’ll walk through how to set up and use LEDES billing in the system. LEDES is a standardized file format used to submit invoices to e-billing platforms. Many clients require LEDES billing to ensure invoices follow a consistent structure and include specific codes such as task, activity, and expense codes.
First, to enable LEDES billing, click your username in the top right corner, select Firm Settings, then open the Configurations tab and choose Billing and Payments. Toggle on Enable LEDES Billing.
Once enabled, LEDES settings are managed under the Settings tab, including File Templates and Code Sets. Here, you’ll see a list of all available code sets, including both system-provided and custom code sets created by your firm.
Code sets are groups of standardized codes used to categorize timekeepers, expenses, activities, and tasks for LEDES billing. In the Actions column, you can clone or edit a code set. For system code sets, Edit allows limited changes. For example, you can mark a code set as the default so it will be used automatically for clients, matters, timekeepers, and invoices unless another option is selected. You can also add or update the default charge description for individual codes.
The default charge description field allows firm administrators to define text that will automatically be appended to the end of a charge description whenever that LEDES code is selected during time or expense entry. Leave this field blank if no description should be added.
If you need to make broader changes to a standard code set, you’ll first need to clone it. To do that, select Clone LEDES Code Set from the Actions column. Enter a name for the new code set, then click Save. Once the clone is created, you can edit it as needed.
On task, activity, and expense clone code sets, you can toggle the active setting for individual codes to control whether they are available to users during time and expense entry. For clone timekeeper code sets, you can enter override codes.
When a LEDES file is generated, those overrides will be used. For example, if the timekeeper code is “legal assistant,” but you enter an override code of “OT,” the generated LEDES file will display “OT” instead of “legal assistant” for that timekeeper’s charges.
Because clone code sets are custom code sets, they can be modified or deleted as needed. You can also create a new code set using Add LEDES Code Set.
Next, select LEDES File Templates. The system uses LEDES 98B as the default format, which is widely accepted. If needed, you can create a custom template by clicking Add LEDES File Template, entering a name, description, a date format, and either uploading a text file or entering the template manually. Note: Sample format templates and supported custom fields can be found in the help center. Templates can be assigned at the client, matter, or invoice level.
Now let’s look at assigning LEDES timekeeper IDs and codes. Navigate to the Members tab and open a member record. Within the Billing section, enter the member’s LEDES Timekeeper ID. In most cases, firms use the member’s initials, although this can vary depending on your e-billing provider’s requirements.
Next, open the LEDES Timekeeper Code dropdown. The options shown here come from the default timekeeper code set, so the system automatically pulls in that list. This code typically reflects the member’s role or title, such as partner, associate, or legal assistant. Keep in mind that this field is separate from the member type used elsewhere in the system.
Now let’s create a new matter with LEDES enabled. When completing the New Matter form, select the LEDES Enabled option. Once selected, additional LEDES-related fields will appear. You’ll notice that the code sets marked as default have automatically populated in these fields. If needed, you can change them by selecting a different code set from the dropdown.
If this matter had been created under a client that already had LEDES configured, those settings would have automatically populated but could be adjusted at the matter level if needed.
The Require UTBMS Codes option is selected by default. This setting requires users to choose the appropriate task, activity, or expense codes when entering time or expenses. If your firm does not want those codes to be required during charge entry, simply deselect this option.
Next is the LEDES Client Matter ID field. In many cases, this value will match the matter number. In this environment, the matter number is automatically assigned when the matter is saved, so go ahead and save the matter.
Once saved, the matter record will open automatically. From here, navigate to the LEDES tab. At the top of the screen, you’ll now see the matter number that was assigned when the record was created. This value can be entered into the LEDES Client Matter ID field.
This tab is also where you can manage the matter’s LEDES settings going forward. If the matter should no longer use LEDES billing, you can disable it here. You can also update the code sets or file template if changes are needed later. These same settings can also be managed at the client level from the details tab, where they can be applied across all associated matters.
Now that LEDES has been fully configured for this matter, let’s create a time entry. Navigate to the Charges tab and select Add Time Entry. You’ll notice the small red indicators, which show that both a task code and activity code are required for this entry.
Select the appropriate codes from the dropdowns. In this example, the default charge description configured earlier for this code is automatically populated as the description. Finish entering any remaining time entry details and click Save. The same concept applies when entering expense charges, except that users will select the appropriate expense code.
Next, let’s generate a pre-bill for this matter. Navigate to the Unbilled page and select Generate Pre-Bill for the matter. Then move to the Pre-Billed tab and open the pre-bill.
Within the time and expense entries, you’ll see the task, activity, and expense codes that were assigned during charge entry. If needed, these codes can be edited directly within the pre-bill.
To review the draft LEDES file, select the dropdown arrow next to Print Preview. You can then download and view the draft file. Many firms use this step to confirm that the correct template is being used and that all required data is appearing as expected.
If updates are needed, click the Settings button at the top of the pre-bill. In the LEDES billing section, you can select a different template from the LEDES File Template dropdown. Keep in mind, this change applies only to the current pre-bill and will not update the default template for future invoices on this matter.
You’ll also see the option to mark the invoice as a Final Bill. This indicates to the e-billing platform that no additional invoices will follow and labels the invoice accordingly. Once everything has been reviewed, go ahead and finalize the invoice.
After finalization, navigate to the Invoices page. The invoice marked as a final bill will display a corresponding icon, making it easy to identify at a glance.
From here, you have a couple of options for downloading LEDES files. To download a single invoice, click the ellipsis icon next to the invoice and select Download LEDES Invoice. To download multiple invoices at once, apply a filter for invoices that have LEDES, select the desired invoices, then open the bulk actions dropdown and choose Download LEDES Invoices.
This will generate a ZIP file containing the finalized LEDES files. Each file is labeled using the client number, matter number, and then the invoice number, making them easy to identify and upload to your e-billing platform.
After uploading the files to your e-billing system, you can update their status in bulk. Open the bulk actions dropdown and choose Edit Sent to E-Billing. Set this value to Yes, then click Save.
To quickly identify which invoices still need to be uploaded, select All Filters. Set Has LEDES to Yes and Sent to E-Billing to No. This will display only those invoices that are ready to be sent. You can also use the Final Bill filter to include or exclude invoices that have been marked as final.
That’s a complete overview of setting up and using LEDES billing—from initial configuration through invoice generation and export. By following these steps, your firm can ensure LEDES files are accurate, consistent, and aligned with your e-billing provider’s requirements.