Line Item Allocations on LEDEs Invoices

Easily assign specific invoice line items to different entities or cost centers, ensuring accurate financial reporting and reducing manual downstream work.

❓ Why Use Line Item Allocations?

You may need to allocate individual line items on an invoice to different entities or cost centers. This ensures:

• Accurate financial reporting

• Reduced manual effort for finance teams downstream

• Alignment with internal cost tracking processes

💡 What Are Line Item Allocations?

Line Item Allocations allow you to:

• Allocate an entire line item or a portion of it to a specific entity or cost center.

• Combine allocations across multiple entities if needed.

• Automatically inherit any remaining amount from the matter-level allocations.

• View final allocation breakdowns in:

  • The Allocations tab

  • The Invoice report (via Report Builder)

💡 Note: The Report Builder currently does not support breakdowns by individual line item allocations.

📌 What Invoices Are Supported?

✅ Supported:

• LEDEs invoices only

⚠️ Why LEDEs only?
LEDEs invoices support per-line tax and charge handling. This enables Brightflag to accurately reflect allocations and apply tax appropriately.

🔧 Adjustments and Line Item Allocations

⚠️ Important: Once line item allocations are applied:

• No further invoice-level or line-level edits are allowed.

• To make changes, remove the allocation first.

💰 How Is Tax Handled?

• On LEDEs invoices, tax is split based on the line item allocation.

• If no allocation exists for a line, tax follows the matter-level allocation (default behavior).

🧭 How to Use Line Item Allocations

✅ Step 1: Enable the Feature

1. Reach out to your Customer Success Manager to enable this feature. 

📄 Step 2: Open a LEDEs Invoice

1. Navigate to a LEDEs-format invoice

2. Open the Allocations tab

   • ⚠️ If you see a ⚠️ warning triangle, you must first set base allocations before proceeding.

🔲 Step 3: Allocate Line Items

1. Select one or more line items using the checkboxes

2. Click “Allocate Selected”

3. In the modal:

   • Choose Allocate by Amount or Allocate by Percentage

   • Add the relevant Entity/Cost Center

   • Adjust the Allocation Amount

   • See the Total Available to Allocate, factoring in:

     • Discounts

     • Adjustments

     • Invoice-level changes

4. Click Save to confirm allocations.

🧾 Understanding the Allocations Tab

🚫 Current Limitations