Best practices when applying a discount to a non-LEDES invoice
Discounts in LEDES files are generally straightforward and applied by the vendor's billing software. However, when adding discounts manually in CounselGO for non-LEDES invoices, CounselGO has several suggestions that will make processing invoices easier for your clients that are using SimpleLegal.
1. Add a separate line item with a line item type of Adjustment with the label/name including "Discount" (this could read "Fee Discount" or whatever name best describes the discount given). What is important is that the client can easily discern that this is a discount line item as opposed to the traditional billed line items.
2. Enter the number "1" in the units column and then enter the total invoice discount as a negative number in the Cost/Rate column. This will effectively subtract the discount from the total.
3. Dating the discount adjustment line item:
Please date the discount/adjustment line item reflective of the dates of the billed line item worked dates. For example, if an invoice for work performed in April is being submitted, remember to date the discount/adjustment line item for a date in April even if the invoice will not be submitted until May. This will be easier for the client to review and report on the invoices when breaking them out across months.
In the screenshot example below, there are $2,500 in total hourly fees, $500 in total expenses, (a $3,000 running total), and a 5% discount is applied to the hourly fees for a total discount of $125. This is added as -$125 which gets subtracted from the $3,000 for a total billed amount of $2,875.
Additionally, the date of the discount line item matches the date of the worked line items.
Please contact email@example.com for any other questions and we are happy to help.