LEDES Billing Format Explained: 1998B Fields, Examples and Common Errors

If your firm bills insurance carriers or corporate legal departments, sooner or later a client will ask for invoices in LEDES format. A PDF won't be accepted. The client's e-billing system wants a text file laid out in a set order, and if one field is off, the invoice comes back rejected and payment waits.

This guide explains what the LEDES billing format is, walks through all 24 fields in LEDES 1998B, shows a sample file line by line, and covers the errors that cause most rejections.

What Is LEDES Billing Format?

LEDES billing format is a standard file layout law firms use to send invoices electronically to clients. LEDES stands for Legal Electronic Data Exchange Standard. Instead of a formatted PDF, the firm sends a plain text file where every time entry and expense sits on its own line, in the same order, so the client's billing software can read it automatically.

The standard is maintained by the LEDES Oversight Committee (LOC). It started in 1995 as an informal group working on a common way to exchange billing data. The first standard, LEDES 1998, came from a cross-industry group led by PricewaterhouseCoopers. You can read the official specifications on the LEDES Oversight Committee website.

Who requires LEDES invoices?

Insurance carriers and corporate legal departments are the main ones. They use e-billing platforms to review outside counsel invoices against their billing guidelines. LEDES lets them check every line for rates, task codes, and rule violations without anyone retyping it. Small firms working with individual clients rarely see a LEDES request.

Is LEDES billing the same as e-billing?

No. E-billing is the process of sending and reviewing invoices through software. LEDES is the file format that makes e-billing work. You can think of e-billing as the delivery and LEDES as the language the invoice is written in. Our LEDES e-billing guide covers the e-billing side in more detail.

LEDES Formats: 1998B vs 1998BI vs XML

There are several LEDES formats. The one your client wants is usually written into their outside counsel guidelines or e-billing portal instructions. Here are the ones you'll come across.

LEDES 1998B

LEDES 1998B is the most widely used format in the US. It's a plain ASCII text file with 24 fields separated by the pipe character ( | ). The LOC last revised its documentation in August 2014 and says it does not plan to change 1998B again. That stability is why so many carriers still ask for it.

LEDES 1998BI

LEDES 1998BI is the international version. The current release, Version 5, was ratified in January 2020 and has 52 fields. It was first proposed by a UK legal IT group in 2004 and adds fields needed for billing across borders, such as tax details and firm and client address information. If you bill clients outside the US or need to show VAT, this is the format you'll likely be asked for.

LEDES XML

The XML e-billing format holds far more detail than the pipe-delimited formats. The latest version, 2.2.2, was authorized by the LOC board in April 2026 and has 216 data elements in 18 segments. It can carry things 1998B can't, like multiple taxes and multiple matters in one file. The older LEDES 2000 XML format is no longer supported, so if a guide still recommends it, it's out of date.

Which LEDES format do I need?

Use the format your client asks for. Most US insurance carriers and corporate clients accept 1998B. International clients usually want 1998BI. Some larger corporate departments ask for XML 2.x. If the guidelines don't say, ask the client's billing contact before you submit.

LEDES 1998B Fields: The Full List of 24 Fields

Every line in a 1998B file holds the same 24 fields in the same order. Some fields describe the whole invoice and repeat on every line. Others describe one specific time entry or expense.

#	Field name	What it holds	Example
1	INVOICE_DATE	Date the invoice was issued	20261130
2	INVOICE_NUMBER	Your firm's invoice number	10452
3	CLIENT_ID	The client's ID, as the client assigns it	7781
4	LAW_FIRM_MATTER_ID	Your firm's matter number	2026-0144
5	INVOICE_TOTAL	Total amount of the full invoice	1085.00
6	BILLING_START_DATE	First day of the billing period	20261101
7	BILLING_END_DATE	Last day of the billing period	20261130
8	INVOICE_DESCRIPTION	Short description of the invoice	Legal services November 2026
9	LINE_ITEM_NUMBER	Sequence number of the line	1
10	EXP/FEE/INV_ADJ_TYPE	Line type: F for fee, E for expense, or an invoice-level adjustment code	F
11	LINE_ITEM_NUMBER_OF_UNITS	Hours for fees, quantity for expenses	1.50
12	LINE_ITEM_ADJUSTMENT_AMOUNT	Discount or adjustment on the line, negative for a reduction	-50
13	LINE_ITEM_TOTAL	Units times unit cost, plus any adjustment	600.00
14	LINE_ITEM_DATE	Date the work was done or expense incurred	20261104
15	LINE_ITEM_TASK_CODE	UTBMS task code for fee lines	L120
16	LINE_ITEM_EXPENSE_CODE	UTBMS expense code for expense lines	E101
17	LINE_ITEM_ACTIVITY_CODE	UTBMS activity code for fee lines	A104
18	TIMEKEEPER_ID	ID of the person who did the work	101
19	LINE_ITEM_DESCRIPTION	Narrative of the work or expense	Draft answer to complaint
20	LAW_FIRM_ID	Your firm's ID, often its tax ID	12-3456789
21	LINE_ITEM_UNIT_COST	Hourly rate or cost per unit	400.00
22	TIMEKEEPER_NAME	Timekeeper's name, last name first	Patel, Anita
23	TIMEKEEPER_CLASSIFICATION	Role code, such as PARTNR or ASSOC	PARTNR
24	CLIENT_MATTER_ID	The client's own matter number	CM-5521

A few things to notice. Fields 1 to 8 are invoice-level, so they repeat on every line. Task and activity codes go on fee lines, and expense codes go on expense lines. Fields that don't apply to a line stay empty, but the pipe separators still have to be there. The full code lists are in our UTBMS codes list.

LEDES 1998B Example File

Here is a short sample LEDES 1998B file for one invoice with two fee lines and one expense line.

LEDES1998B[]
INVOICE_DATE|INVOICE_NUMBER|CLIENT_ID|LAW_FIRM_MATTER_ID|INVOICE_TOTAL|BILLING_START_DATE|BILLING_END_DATE|INVOICE_DESCRIPTION|LINE_ITEM_NUMBER|EXP/FEE/INV_ADJ_TYPE|LINE_ITEM_NUMBER_OF_UNITS|LINE_ITEM_ADJUSTMENT_AMOUNT|LINE_ITEM_TOTAL|LINE_ITEM_DATE|LINE_ITEM_TASK_CODE|LINE_ITEM_EXPENSE_CODE|LINE_ITEM_ACTIVITY_CODE|TIMEKEEPER_ID|LINE_ITEM_DESCRIPTION|LAW_FIRM_ID|LINE_ITEM_UNIT_COST|TIMEKEEPER_NAME|TIMEKEEPER_CLASSIFICATION|CLIENT_MATTER_ID[]
20261130|10452|7781|2026-0144|1085.00|20261101|20261130|Legal services November 2026|1|F|1.50|0|600.00|20261104|L120||A104|101|Review and analyze client documents for case assessment|12-3456789|400.00|Patel, Anita|PARTNR|CM-5521[]
20261130|10452|7781|2026-0144|1085.00|20261101|20261130|Legal services November 2026|2|F|2.00|-50|450.00|20261110|L210||A103|205|Draft answer to complaint|12-3456789|250.00|Moore, James|ASSOC|CM-5521[]
20261130|10452|7781|2026-0144|1085.00|20261101|20261130|Legal services November 2026|3|E|1|0|35.00|20261112||E101|||Copying|12-3456789|35.00|||CM-5521[]

How to read a LEDES file line by line

Line 1 is always LEDES1998B[]. It tells the client's system which format to expect.
Line 2 is the header row. It lists all 24 field names in order.
Lines 3 and after are the invoice lines. Each one is a single time entry or expense, and each ends with [].

In the example, the first fee line is 1.5 hours at $400, so the line total is $600. The second is 2 hours at $250 with a $50 discount, so the total is $450. The expense line is $35 for copying, with no task code, activity code, or timekeeper because those don't apply to an expense. Add the three line totals and you get

,085, which matches the invoice total in field 5. If those two numbers don't match, the file gets rejected.

Dates are written as YYYYMMDD with no dashes or slashes, as in the LOC's official sample file. Timekeeper names are written last name first.

How to Create a LEDES File

Most firms don't build LEDES files by hand. They export them from their billing or accounting software. Here's the usual process.

Step 1: Check the client's billing guidelines

Find out which LEDES format the client wants, which UTBMS code set they use (litigation, counseling, bankruptcy, and so on), and any rules on rates, block billing, or expenses they won't pay.

Step 2: Set up the client and matter details

Enter the client's own ID and matter number in your billing system. Fields 3 and 24 must match what the client has on file, not your internal numbers.

Step 3: Code time entries as they're recorded

Have timekeepers add task and activity codes when they enter time, not at month end. Fixing codes across a month of entries is where most delays start. Our guide to the law firm billing process covers how to build this into your weekly routine.

Step 4: Export the LEDES file

Generate the invoice and choose the LEDES export option in your software. Save it as a .txt file unless the client's portal says otherwise.

Step 5: Check the file before you upload

Open it in a plain text editor. Confirm the first line reads LEDES1998B[], every line ends with [], and the line totals add up to the invoice total. Then upload it to the client's e-billing portal.

Can you convert a PDF invoice to LEDES?

Yes, but it's slow. You have to re-enter each line with its codes into a tool or spreadsheet that outputs LEDES. If you get regular LEDES requests, it's faster to use billing software that exports it directly. If you're still working from standard invoices, our free legal invoice template shows what every invoice should include before you convert it.

Common LEDES Errors and How to Fix Them

LEDES rejections come from two places. File errors happen when the format itself is broken, and the system can't read the invoice. Billing errors happen when the file is fine but the content breaks the client's rules.

The LOC standardized error codes so firms get clear messages instead of vague rejections. Version 2, ratified in September 2024, lists 65 unique errors. Each one is classed as fatal (the whole file is rejected), validation (a value fails the client's rules), or procedural (the entry breaks a process the client requires).

LEDES file errors

Wrong number of columns. Every line in a 1998B file needs exactly 24 fields. A missing pipe or an extra one shifts every field after it. Fix: count the pipes on the failing line. There should be 23.

A pipe character inside a description. If a timekeeper types "|" in a narrative, the system reads it as a new field. Fix: remove pipe characters from all descriptions before export.

Missing line endings. Each line has to end with []. Fix: check the last few characters of every line, especially if someone edited the file by hand.

Wrong date format. Dates like 11/04/2026 or 2026-11-04 will fail. Fix: use YYYYMMDD.

Totals don't match. The sum of all line totals must equal the invoice total, and each line total must equal units times unit cost plus any adjustment. Fix: recalculate, and check that discounts are entered as negative numbers.

Wrong file type. Some portals only accept .txt files and reject .dat or .edi. Fix: rename the file to .txt or export it again.

LEDES billing errors

Missing or wrong UTBMS codes. A fee line with no task code, or a code from the wrong code set, gets flagged. Fix: confirm which code set the client uses and code every fee line.

Block billing. Several tasks lumped into one entry with one time total is the most common content rejection. The LOC even has a set code for it: 1012-0053, "Bulk billing not allowed." Fix: split each task into its own line with its own time.

Rate mismatch. If a timekeeper's rate on the invoice is higher than the rate the client approved, the line gets cut or rejected. Fix: keep approved rates per client in your billing system and check them before export.

Timekeeper not on file. Clients often require you to register each timekeeper and their classification first. Fix: submit new timekeepers to the client before they bill time on the matter.

Duplicate invoice number. Resubmitting a corrected invoice with the same number can trigger a duplicate error. Fix: follow the client's resubmission rules, which may mean a new invoice number.

LEDES vs UTBMS Codes: What's the Difference?

LEDES is the file format. UTBMS codes are the labels inside the file that describe the work. UTBMS stands for Uniform Task-Based Management System. A task code like L210 (Pleadings) says what phase of the matter the work belongs to, and an activity code like A103 (Draft/Revise) says what the person actually did. Expense codes like E101 (Copying) label costs.

You can use UTBMS codes without LEDES, but a LEDES invoice for an insurance or corporate client almost always needs them.

How LawAccounting Helps With LEDES Billing

LawAccounting supports LEDES billing, so your firm can create LEDES invoices from the same system it uses for time, billing, and accounting. You don't have to export time from one tool, rebuild the invoice in another, and then convert it into a LEDES file by hand.

Because it's built on Salesforce, client details, matter numbers, and billing entries all live in one place. The data that goes into your LEDES file comes from the same records your team already uses, and each extra handoff you skip is one less chance to introduce the column, total, or matter ID errors covered above.

See how LEDES billing works in LawAccounting.

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Frequently Asked Questions

What does LEDES stand for?

LEDES stands for Legal Electronic Data Exchange Standard. It's maintained by the LEDES Oversight Committee.

How many fields are in a LEDES 1998B file?

LEDES 1998B has 24 fields. LEDES 1998BI has 52.

What is the latest LEDES version?

The latest XML e-billing version is 2.2.2, authorized in April 2026. LEDES 1998B has not changed since its 2014 documentation update, and the LOC doesn't plan to change it.

What date format does LEDES 1998B use?

YYYYMMDD, with no separators. November 4, 2026 is written 20261104.

What file type should a LEDES file be?

Usually a plain .txt file. Some e-billing portals accept other extensions, so check the client's upload instructions.

Why was my LEDES invoice rejected?

The most common reasons are a wrong column count, totals that don't add up, missing UTBMS codes, block billing, and rates that don't match the client's approved rates. The rejection message usually includes a LEDES error code that points to the field.

Do I need special software to create a LEDES file?

You can build one by hand in a text editor, but it's easy to make mistakes. Most firms use billing or accounting software that exports LEDES files directly.

Conclusion

LEDES 1998B looks technical, but it's a fixed list of 24 fields in a set order. Get the client's format and code set right at the start, code time as it's entered, and check three things before every upload: the first line, the line endings, and the totals. That covers most of what gets LEDES invoices rejected.