LEDES Invoicing

Part 1: The Basics

LEDES (Legal Electronic Data Exchange Standard) Invoicing converts invoice detail into a specially formatted plain text file that can be electronically transferred (via email or another client-provided upload process) to the computer system of the client being billed.

A LEDES formatted invoice contains the same line item information as a standard invoice. In addition, each line item contains codes that allow the client's computer systems to analyze the content of the invoice.

The aforementioned codes are assigned to time and expense items as they are created. Assigning these codes is as simple as selecting the appropriate code from a list as you enter individual time and expense records. Standard codes are pre-defined in Time59 and custom codes can be created by the user.

The process that generates the actual LEDES invoice text file verifies that all time and expense items have been properly coded. If problems are detected, error messages are displayed with instructions on how to correct the problems.

Part 2: Understanding Codes

LEDES coding is used for both time and expense records.

A time record will always have a Timekeeper Code assigned to it. Time59 allows you to define as many timekeepers as you require. These timekeeper items will then appear in a drop down list when you are creating a time record. You simply select the timekeeper that is associated with the time you are entering.

Timekeeper information on a LEDES invoice consists of two values. One is the timekeeper name and the other is a unique value that identifies the timekeeper. By default Time59 assigns a unique value to each timekeeper that you define. Most clients receiving the invoice will accept this default value. In some situations however, the client may request that a specific timekeeper code value be used. Time59 allows you to set up specific timekeeper values to satisfy these requests.

Time records may also be assigned two other types of codes: UTBMS Task Codes and UTBMS Activity Codes. (UTBMS stands for Uniform Task Based Management System.)

Expense records may be assigned UTBMS Expense codes.

The standard set of values for UTBMS task, activity, and expense codes are predefined in Time59. They will appear in drop down lists when entering time and expense records.

Not all clients will require that all of these codes be used. For example, a particular client may only require that Time Task codes be specified and does not require Activity or Expense codes.

Some clients may request you to use non-standard codes. Time59 allows you to define custom codes as required by different clients.

Time59 makes it easy to encode time and expense entries for LEDES invoicing. It is also flexible enough to accomodate special requests from clients.

Part 3: Generating the File

This post will discuss how to create the actual LEDES data file that will be transmitted to the client.

On the Invoicing & A/R tab in Time59 you will find two links:

1. LEDES Invoice Preview Report
2. Create a LEDES Invoice File

The "LEDES Invoice Preview Report" will display the time and expense records that will be included on the invoice. It will verify that they have been properly encoded. Any problems will be indicated by error messages and these time and expense records can be corrected. When this report indicates that all time and expense records are properly encoded you can procede with invoice production.

To create a LEDES invoice you first need to create an invoice using the normal Time59 invoice production process.

The final step in LEDES invoice production is to export data from the invoice into the LEDES-formatted file. This will be done using the "Create a LEDES Invoice File" process. This process will allow you to export the LEDES file to your local computer. From here you can email it to the client or upload it via a gateway provided by the client.

Common Questions