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Mitratech Success Center

Corridor - How to Prepare Fixed Fee Invoices/Flat Fees

There are different ways to handle Alternate Fee Arrangements depending on how the client would like to see the invoice come into their system.

 

It is highly recommended that you contact your client to find out how they would like the invoice submitted.



Option 1 – One Line Item – Flat Fee Timekeeper – Upon Client’s approval, the Vendor can create a Timekeeper ID (e.g., FF or FlatFee) for Flat Fee invoices. The client will create a People Record for the Timekeeper ID with a capped approved Rate in the People Employment record for these types of invoices. However, due to accounting control and maintaining accountability of timekeeper reconciliation, the client may not want to set up a dummy timekeeper. For an example of how the firm should submit the invoice using this method, see Option 1 Sample – One Line Item – Flat Fee Timekeeper LEDES file;

OR

Option 2 – Detailed Invoice – Flat Fee – This allows the submission of an itemized invoice showing all work performed on the matter. An adjustment line can be used to adjust  down to the agreed-upon flat fee. For an example of how the firm should submit the invoice using this method, see Option 2 Sample – Detail Invoice – Flat Fee LEDES file;

OR

Option 3 – One Line Item – Flat Fee – An existing Timekeeper ID who is approved to work on the Matter the vendor is billing can be used to adjust the invoice total down accordingly to equal the Flat Fee amount. For example if the Timekeeper’s Rate is $350, for a Flat Fee of $3800, the invoice is populated as 11 (Units) * 350.00 (Rate) + -50 (Adjustment) = 3800.00. For an example of how the firm should submit the invoice using this method, see Option 3 – One Line Item – Flat Fee LEDES file.

The Client will need to decide what method it wants the firm to use to submit their Flat Fees and instruct them accordingly.

Note that some clients will reject the invoice if no Timekeeper ID is included in the Flat Fee charge.

Flat fee options.pdf