Create invoices in LEDES format

Internationally active law firms know the problem: e-invoices are the standard, especially in English-speaking countries such as the United States and the United Kingdom. Therefore, law firms usually have to submit their invoices in the so-called LEDES (e-billing) format via a platform. We present how Vertec can support you in these invoicing processes in this blog post.

Find out more about this:

1. LEDES format: challenge for law firms
2. The solution in vertec via cloud ready additional feature
3. Mapping special cases in Vertec
4. Insights from our experiences

1. LEDES format: a challenge for law firms

LEDES (Legal Electronic Data Exchange Standard) is a rate of file format specifications designed to facilitate electronic data transfer in the legal sector. It is a clear standard, but its practical application differs to some extent: This is also reflected in the implementation in Vertec, where each customer should map the electronic invoice data according to his or her own customer-specific characteristics.

LEDES can correspond to different types of e-billing formats. In this article we will focus on the following four formats (see also LEDES on Wikipedia):

• LEDES 98b: The standard was introduced in 1998. It has a rigid structure and is therefore not very flexible. It outputs a text file.
• LEDES 98bi (International): Base on the LEDES 98b standard and outputs a text file. This format is designed to accommodate legal invoices created outside the United States. For example, VAT is displayed. LEDES 98bi is the most commonly used LEDES format.
• LEDES XML2.0: Ratified in 2006 and complies with international requirements in XML format.
• LEDES XML2.1: This XML format was ratified in 2008.

UTBMS (Uniform Task-Based Management System) is a widely used system for coding legal work. Since 2006, it has been an integral part of LEDES. The Uniform Task-Based Management System consists of a set of codes designed to standardise categorisation and facilitate the analysis of legal costs and expenses.

2. The solution in Vertec via cloud ready additional feature

With the implementation of our free and cloud ready additional feature Ledes export The process of exporting an invoice in LEDES format has been standardized. Use the additional feature to create your customized LEDES templates, assign them to the desired case, create invoices and export them in LEDES format.

The e-billing formats LEDES 98B and LEDES 98BI are supported. The additional function additional feature settings folderLEDES Templates” creates Setting, which serves as a collection point for all your individual LEDES templates.

Once created, templates can be used for all future cases. Custom templates include all relevant data and attributes such as the Lawfirm ID, the entries for using UTBMS codes for services and outlays, as well as options for user and address information.

At the mandate level (called “LEDES” in the screenshot below), the LEDES settings are then made on the “More Info” page. Here you select the appropriate template and provide details of Client ID, Lawfirm Matter ID and Client Matter ID.

As soon as the LEDES-specific information has been provided, the LEDES export can be carried out on an invoice or a bill of invoice.

In the next step, the LEDES export can be executed. You can start the export by right-clicking on a case on the respective invoice and then clicking on “LEDES”.

Afterwards, an export file is created in text format. The Explorer opens to select a location (cloud and Desktop App) or the file is saved in the downloads (Web App).

UTBMS Codes and Activity Codes can be entered directly during the performance recording. To do this, two new columns must first be added via the list settings of the services.

At this point come the Custom Renderer which allow an individual configuration of cells in lists by means of Python script.

3. Mapping special cases in Vertec

Vertec also supports special cases, such as the charge of lump sums, discounts or flat-rate invoices. In order to use flat-rate invoices, Vertec makes a flat-rate adjustment of the external hours. The external hours of each service can either be adjusted individually or alternatively a list of services can be adjusted flat-rate. The external hours are adjusted if the contractual agreement (the hourly rate) is not to be changed by the flat-rate adjustment. Vertec incurs two hours: the actual working time and the billable hours. Thus, neither the actual work performance (“internal hours”) of the employees nor the costs are affected (see also Increases and deductions: the investment and amortization of the fiduciaries ).

Another challenge when using the LEDES format are the rounding discrepancies, which arise, for example, in the case of VAT. With the LEDES 98b format, this problem is eliminated, as there is no VAT. The VAT has to be calculated for LEDES per service, which leads to rounding discrepancies. Vertec therefore explicitly displays the VAT rounding discrepancies when exporting invoices for the LEDES platform. For the law firm, there are three ways to deal with this problem:

1. The rounding differences are accepted and the invoice corresponds to the values calculated in Vertec.
2. The VAT is rounded so that each service is calculated individually. This method may cause slight differences to the Vertec invoice.
3. VAT is added as a “simulated service”. (This is useful, for example, for LEDES 98b.)

4. Lessons learned from our experience

For the integration of the LEDES format in Vertec as Software for lawyers Some preparation is required. For example, it has been shown that obtaining all the necessary information, such as the Law Firm Matter ID, is not very easy. Often, end-customer support has to be requested. Large international corporations have their own LEDES support departments for this purpose.

Files that are uploaded to the LEDES platforms undergo a variety of plausibility checks. For example, the allocation of discounts to individual services or the use of text components in brackets when handing over the invoice can become a trap. Vertec therefore pays particular attention to these problems and offers individual solutions for you as a customer.