Overview

ℹ️ Feature Availability: LEDES Billing has been released and will be made available to customer firms through a phased rollout. The options described in this guide may not yet be available in your environment.

LEDES Billing allows firms to create structured invoice files using UTBMS codes.

These codes help identify:

• the type of legal work completed.

• the activity performed

• the expense or disbursement type

• the timekeeper classification

Where enabled and configured, Efimis supports LEDES 1998B and LEDES 1998BI output formats. Some fields are only required for LEDES 1998BI, including the Client Tax ID and additional tax, currency, client, and matter information.

The standard billing workflow and any configured approval or authorisation steps remain in place. However, LEDES introduces additional setup, coding, and validation requirements. When a valid LEDES invoice is finalised, Efimis generates the LEDES file and sends it to the firm’s configured LEDES mailbox addresses.

When LEDES Billing Applies

LEDES Billing applies when it is enabled in Firm Settings and the relevant matter is LEDES-enabled and configured with a LEDES output format and valid UTBMS code set.

client LEDES settings provide defaults for new matters. New clients are not LEDES-enabled by default. When a client is enabled, new matters inherit the client’s LEDES settings where available. The matter settings can then be reviewed and amended for the specific billing arrangement.

LEDES Setup Required Before Billing

Before fee earners can record valid LEDES entries, the following setup must be completed, depending on the selected LEDES format.

Law Firm ID

The Law Firm ID used in the generated LEDES file is taken from the matter.

Default values work as follows:

Confirm that the matter's Law Firm ID is correct before finalising the invoice.

Address and Country Information

Efimis uses:

1. The preferred address, where one is available.

2. The billing address if there is no preferred address.

An address is not required in every case. However, where a country is entered, it must be a recognised country name or code.

UTBMS Code Sets 

A UTBMS code set determines which task, activity and expense codes can be used for LEDES Billing. The code set is enabled in Firm Settings and assigned to the relevant client or matter.

Supplied Code Sets

Efimis initially provides the following system code sets:

System code sets can be viewed but cannot be edited directly. To tailor the codes for your firm, clone an existing set and edit the cloned version.

Task Codes

Task codes identify the legal work category or phase. Their format depends on the code set assigned to the matter. For example, ABA Litigation uses L codes, while EW Civil Litigation uses J codes.

The task codes available for selection are limited to those included in the matter’s assigned code set.

Activity Codes

Activity codes identify the type of activity performed, such as drafting, reviewing, researching, or communicating.

On a LEDES matter, the activity code field captures the relevant LEDES activity code. The available codes are determined by the code set assigned to the matter.

Expense Codes

Expense codes identify the type of expense, disbursement, or cost recovery. Depending on the selected code set, these may use E codes or X codes.

The available expense codes are determined by the code set assigned to the matter. Firms can clone a supplied code set to control which codes are available.

Managing UTBMS Code Sets

Users with access to Firm Settings can view and manage the UTBMS code sets available to the firm.

Navigate to:

Settings → Firm Settings → LEDES Billing

Select Manage UTBMS code sets.

Cloning a Code Set

Use cloning when the firm needs to customise one of the supplied system code sets.

1. Locate the code set you want to copy.
2. Select the ellipsis menu → Clone.
3. Enter a Code Set Name.
4. Enter a Description, where required.
5. Confirm the Code Set to Clone.
6. Select Clone.
7. Review the included Task Codes, Activity Codes and Expense Codes.
8. Use the Included switches to add or remove individual codes. To update multiple codes, select them and choose Actions → Include or Actions → Exclude.
9. Select Save.

The cloned set is independent of the original system set.

Editing a Code Set

Supplied system code sets are read-only and display a View option. Only code sets created or cloned by the firm can be edited.

To edit a custom code set:

1. Locate the code set.

2. Select the ellipsis menu → Edit.

3. Select Edit details to update its name or description.

4. Use the Task Codes, Activity Codes and Expense Codes options to review the available codes.

5. Use the Included switches or the bulk Actions menu to include or exclude codes.

6. Select Save.

The code family cannot be changed after the code set has been created.

Making a Code Set Inactive

A code set created or cloned by the firm can be made inactive when it should no longer be available for selection.

1. Locate the custom code set.

2. Select the ellipsis menu → Make Inactive.

To restore it, filter the list to show inactive code sets and select ellipsis menu → Make Active.

System code sets cannot be made inactive.

Recording Time for LEDES Matters

Timed Fees

For a timed fee on a LEDES-enabled matter, the following information must be completed before the work item can be finalised:

• LEDES Task Code
• LEDES Activity Code
• Timekeeper Classification
• A valid Employee Number for the fee earner

A draft timed fee can be saved without all LEDES information.

itemised fees do not require the same Task Code, Activity Code and Timekeeper Classification fields because they are represented as invoice-level fee adjustments in the LEDES file.

When recording time on a LEDES-enabled matter, you may need to complete additional LEDES information.

How to Record Time

1. Open the relevant Matter.
2. Create a new Time Entry as normal.
3. Enter the time details, including date, duration, fee earner, rate, and narrative.
4. Select the relevant LEDES Task Code.
5. Select the correct Activity.
6. Save the entry.

Before the timed fee entry can be finalised, it must have a LEDES Task Code, Activity Code and Timekeeper Classification.

When a time entry is cloned for the same matter, the LEDES Task Code, Activity Code and Timekeeper Classification are copied to the new entry. Review these values before saving. If the matter is changed, the Task Code and Activity Code are reset for the new matter. If the fee earner is changed, the Timekeeper Classification defaults from the newly selected employee. 

Timekeeper Classification

When firm-level LEDES Billing is enabled, each employee record requires an Employee Number and LEDES Timekeeper Classification. The classification defaults onto a new LEDES time entry and can be changed on the time entry where necessary.

This is set on the employee record and is separate from:

• job title
• billing grade
• billing rate

The Timekeeper Classification is used in the LEDES output file to identify the type of timekeeper who performed the work.

Recording LEDES Expenses and Disbursements

Every expense, disbursement or cost recovery included in a LEDES invoice must have a valid UTBMS Expense Code from the Code Set assigned to the matter.

Depending on how the transaction is created, the Expense Code may be:

• selected directly on the disbursement
• populated from the selected Disbursement Code
• populated from a General Ledger Disbursement Code
• retained through a requisition or incurred disbursement workflow.

Where a UTBMS Expense Code is configured against a General Ledger Disbursement Code, it is carried into the related payment or disbursement entry. A payment created from a requisition also retains its UTBMS Expense Code.

Correcting Expense Codes

A valid UTBMS Expense Code is required for expenses included on a LEDES invoice.

On a LEDES-enabled matter:

• The expense code can be added or corrected while the disbursement is open.
• A closed or cancelled disbursement cannot be updated.
• The source disbursement must contain a valid code before the invoice can be finalised.

During invoice finalisation, Efimis refreshes the expense code from the source transaction before running the final LEDES validation.

If a required expense code is missing from a closed disbursement, contact Efimis Support.

Important Rules for Expenses

• A disbursement may be entered before the UTBMS Expense Code is complete.
• A missing or invalid expense code prevents the invoice from being finalised.  
• Expense codes should be reviewed before billing.
• Where possible, use the correct disbursement code so the expense code is captured consistently.
• Expense codes are checked against the UTBMS Code Set assigned to the Matter during invoice finalisation, before the LEDES file is generated.

Checking LEDES Information

Checking for Missing LEDES Codes

Before creating or finalising an invoice, use the LEDES Code Missing system views to identify entries that need attention:

Correct the source time entry or disbursement before finalising the invoice.

For users with access to management reports, the Work Item Listing also includes optional LEDES Task Code, LEDES Activity Code and LEDES Timekeeper Classification columns for review and export.

Validation Rules 

Before a LEDES invoice can be completed, the following information may be required:

• LEDES Task Code on timed fee lines
• Activity Code on timed fee lines
• Timekeeper Classification for the fee earner
• UTBMS Expense Code on expense/disbursement invoice lines
• LEDES output format.
• Client Tax ID for 1998BI
• Matter Format, Code Set and Account Type
• Valid invoice number, invoice date, billing dates, totals, currency, tax, and line values
• Client Matter ID / LEDES Identifier and PO Number, where supplied or required by the client billing arrangement.
• Client Number, used as the LEDES Client ID
• Matter Number, used as the Law Firm Matter ID
• Employee Number, used as the Timekeeper ID
• A valid Law Firm ID on the Matter. Firm and client values provide defaults for new records.
• Valid codes from the Matter’s selected UTBMS Code Set

Missing or invalid required LEDES information prevents the invoice from being finalised. 

The Account Type is included in LEDES 1998BI output.

Checking LEDES Readiness When Creating an Invoice

After you select Add Invoice for a LEDES-enabled matter, Efimis checks the proposed invoice for missing or invalid LEDES information.

The LEDES validation panel may display:

• Checking LEDES validation
• Ready for LEDES
• A numbered LEDES validation warning showing how many issues need attention.
• Unable to check LEDES validation.

Where issues are found, they are grouped by:

• Work items
• Disbursements
• Cost recoveries

You can leave the invoice screen, correct the source transactions, and select Add Invoice again.

The readiness check does not:

• Finalise the invoice.
• Allocate the final invoice number.
• Post accounting entries.
• Generate the LEDES file.
• Email the LEDES mailbox.

You can continue creating the draft invoice when issues are displayed. However, the invoice must pass the mandatory LEDES validation before it can be finalised.

If the readiness check is temporarily unavailable, draft invoice creation is not blocked. Validation runs again during finalisation.

When the Readiness Check Appears

The LEDES readiness panel is displayed when you select Add Invoice for a LEDES-enabled matter.

It is not displayed when reopening or editing an existing draft invoice.

The latest invoice and related information are checked again when you select Finalise.

Creating and Finalising a LEDES Invoice

Billing Process 

The standard billing workflow remains the same:

1. Time and disbursements are recorded.
2. An invoice is created.
3. The invoice is reviewed.
4. Where approval is configured, the invoice is approved.
5. The invoice is finalised.

During finalisation, Efimis validates the complete LEDES file. If validation succeeds, the .txt file is generated automatically and sent to the LEDES mailbox addresses configured in Firm Settings.

Where automatic invoice filing is enabled, the LEDES file is filed in the Matter’s Accounts document area.

Invoice Behaviour

LEDES Billing does not create a separate billing workflow.

However, the following behaviour applies to LEDES invoices:

Key Terms

Best Practices for Fee Earners

• Select the correct matter before recording time.
• Use the correct LEDES Task Code.
• Select the correct Activity.
• Make sure your Timekeeper Classification is set before recording LEDES time.
• Use consistent coding for similar work.
• Ensure every expense or disbursement has the correct UTBMS Expense Code before billing. 
• Do not leave LEDES coding until the invoice is ready to finalise.
• If a LEDES field is missing, ask the billing or accounts team to check the client, matter, employee, or disbursement code setup.
• Do not wait until finalisation to check LEDES coding, because missing fee, expense, employee, client, or matter setup can block invoice completion.