A capped fee is a maximum amount agreed in advance for a specific task or activity.

If a vendor charges more than the agreed cap, Brightflag can flag or automatically reject the invoice — depending on your configuration.

⚠️ Capped fee enforcement applies to LEDES invoices only.

How Capped Fee Enforcement Works

When a LEDES invoice is uploaded:

• Brightflag compares the submitted line item amount

• Against the agreed capped amount in your rate card

• If the amount exceeds the cap, the invoice is flagged (or auto-rejected, if configured)

Required LEDES Fields for Capped Fee Checks

For the capped fee validation to work, the following fields must exactly match your configured rate card:

1️⃣ LINE_ITEM_DESCRIPTION

The description must start exactly as it appears on the client’s rate card.
Additional wording can follow, but the beginning must match exactly.

2️⃣ LINE_ITEM_TASK_CODE

Must match the task code on the rate card exactly.
Example: PA320

3️⃣ CURRENCY

Required for LEDES 98B files.
Must use the correct ISO currency code (e.g., USD, EUR, GBP).

If these fields do not match exactly, the capped fee check will not trigger.

What Happens If the Cap Is Exceeded?

If a vendor submits a line item above the agreed cap:

• The invoice will be flagged, or

• Automatically rejected (if auto-reject is enabled)

Example

Agreed capped fee: $500
Submitted line item: $675

The system flags the invoice because it exceeds the agreed maximum.

Where to Monitor Capped Fee Enforcement

How to Configure Capped Fees

Capped fees must be configured by your Customer Success Manager.

If you would like to enable capped fee enforcement, contact your CSM.

Example Capped Fee Rate Card