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Invoices

Flat and fixed fee examples

Flat fee types include project-based, life-of-matter, and monthly recurring arrangements, with set rates and classification for auditing and invoice specifications.
There are 3 common flat fee arrangement types:
  1. Project-based Flat Fee
    :
    • The cost covers an entire project.
    • Work hours aren't specified.
    • There may be multiple billings on 1 invoice.
    • An invoice may also cover a blended arrangement that includes hourly billing.
  2. Flat Fee for Life of Matter
    :
    • The unit rate reflects the cost of the entire matter.
    • Hours aren't specified.
    • There's 1 bill.
  3. Monthly Reoccurring Flat Fee
    :
    • The unit rate reflects the monthly cost amount.
    • Hours aren't specified.
    • There's a bill each month.

Timekeeper rate approval

  1. Timekeeper Base Rate
     (BASE_RATE) =
    2000
     (or 2500)
  2. Timekeeper Effective Rate
     (EFFECTIVE_RATE) =
    2000
    note
    Base Rate
     can be more than
    Effective Rate
     if it's reflecting a discount.
  3. Timekeeper ID
     (TIMEKEEPER_ID) =
    FF-2000
     (or FF or MJ-2000)
    note
    We suggest using a descriptive
    Timekeeper ID
     and having a separate
    Timekeeper ID
     approved for an hourly rate.
  4. Timekeeper Name
     (TIMEKEEPER_NAME) =
    Mary Jones
     (or Flat Fee)
    note
    You can specify a person’s name or a generic title.
  5. Timekeeper Classification
     (TIMEKEEPER_CLASSIFICATION) =
    FLTFEE
    note
    The company needs to turn on timekeeper classification
    Fixed/Flat Fee (FLTFEE)
    . The amount to have approved and use is
    FLTFEE
    .

LEDED specifications

  1. Line Item Type
     (EXP/FEE/INV_ADJ_TYPE) =
    F
  2. Units
     (LINE_ITEM_NUMBER_OF_UNITS) =
    1
  3. Unit Cost
     (LINE_ITEM_UNIT_COST) =
    2000
  4. Timekeeper ID
     (TIMEKEEPER_ID) =
    FF-2000
     (or FF or MJ-2000)
  5. Timekeeper Name
     (TIMEKEEPER_NAME) =
    Mary Jones
     (or Flat Fee)
  6. Timekeeper Classification
     (TIMEKEEPER_CLASSIFICATION) =
    FLTFEE
  7. Line Narrative
     (LINE_ITEM_DESCRIPTION) =
    note
    We suggest providing a narrative referencing “flat fee” along with a description of the arrangement and work completed.
  8. Task Code
     (LINE_ITEM_TASK_CODE) =
    note
    We suggest using Custom Task Codes to identify and categorize each project.

Company side auditing

Flat fee audits vary by type but the approved
Unit Rate
 is subject to Timekeeper Audit to make sure it's not exceeded.
To restrict how much or how often it can be billed, you'll need to do the following:
  1. For a
    Project-based Flat Fee
     where the $2,000 cost covers an entire project, use 1 of the following:
    • A
      Law Firm Budget
       if the timeline is known.
    • Task Code Alerts
       to set limits on the use of specific task codes.
  2. For a
    Flat Fee for Life of Matter
    , use 1 of the following:
    • A
      Law Firm Budget
       with
      Time Period for Comparison
       set to
      Total for Matter
      .
    • The
      Capped Fee
       or
      Fixed or Flat Fee
       Alternative Fee Arrangement (AFA).
  3. For a
    Monthly Reoccurring Flat Fee
    , use the following:
    • A Law Firm Budget with
      Time Period for Comparison
       set to
      Fiscal Year to Date
      .

This article applies to:

  • Product: Legal Tracker
  • Subject: Invoices
  • Audiences: Firm