How to: Add and Manage an Invoice

Invoice-Related Concepts

1. Cost Centers & Department List: Add cost centers to the platform to monitor expenses and manage departmental budgets.

2. Billing Guideline: Establish standardized rules to ensure consistency, accuracy, and compliance across all invoices. These guidelines can either flag non-compliant invoices or line items for review or reject them outright.

3. Vendors: Add vendors to the platform to effectively manage suppliers and their invoices.

Note: Please ensure the above items are uploaded to the platform before submitting invoices.

Department List Set-Up

Step 1: Navigate to the “Invoices” module in the Management section of your Workspace and Select “Cost Centers”;

Step 2: Navigate to the “Department List”;

Step 3: Click on “Add Department”;

Step 4: Type the department name and press Enter on your keyboard.

Step 5: To delete an existing department, click the X symbol to the right of the Department name.

Cost Center Management

Step 1: Navigate to the “Invoices” module in the Management section of your Workspace and Select “Cost Centers.”

Step 2: Click on “Add cost center;”

Step 3: You will be directed to the Cost center setup page. Here, you can enter the following details:

• Code: Enter the unique identifier or reference number assigned to each cost center.

• Cost Center: Provide the name or description of the department, unit, or project the cost center represents.

• Budget (Optional): Set a budget for the cost center, if applicable.

• Department: Select the department responsible for managing costs and budgets from your department list.

• Approvers: Choose an approver from the users in your workspace.

Step 4: After entering the necessary details, click "Add Cost Center" at the bottom right of the setup page.

Note: If you would like to edit or delete an existing Cost Center, simply select your desired action from the “Actions” column in your Cost Center List.

Setting Up Billing Guidelines

Step 1: On the Invoices page, click on “Upload Billing Guideline;”

Step 2: You will be redirected to your list of Billing Guidelines. Keep in mind that only one Billing Guideline can be active at a time - adding a new one will automatically deactivate the others. Additionally, each guideline can contain multiple rules.

Step 3: After clicking "Add New Billing Guideline," you will be required to upload a pdf document with your billing guidelines;

Step 4: Once the upload is complete, enter the Guideline Name and define multiple rules that will apply to all future uploaded invoices.

Creating Rules

• Rule Type: Choose whether the rule applies to the entire invoice or a specific line item.

• Field: Select the invoice field where the rule will be enforced (e.g., Total Amount, Description, Status, Invoice Type).

• Operation: Define the condition for the rule (e.g., Equals, Does Not Equal, Contains, Starts With, Ends With).

• Value: Enter the criteria based on the selected operation.

• Action: Choose what happens if the rule is met (Warning or Reject).

Reviewing Invoice Compliance

After an invoice is uploaded and billing guidelines are applied, a yellow triangle may indicate a line item violation. Click the warning icon to see options:

• Edit Line Item: Make necessary adjustments.

• Continue Without Adjustment: Proceed without changes, bypassing the guideline.

Creating Invoice Artifacts

Step 1: Navigate to the “Invoices” module in the Management section of your Workspace. You will be able to view all your invoices, apply filter to identify specific artifacts, and create new ones.

Step 2: To create a new artifact, select “Add New Invoice;”

Step 3: Upload the invoice as either a PDF or LEDES file;

Step 4: Once the file is uploaded, determine if you would like to input the details manually, or if you would like to have our AI tool read it and translate its details into the artifact

Note: If you select the “Auto Add with AI” option, certain details - such as Vendors, Cost Centers, and Payee Names - must be added manually.

This is because Traact maintains a structured database for Vendors, Cost Centers, and Vendor Members (Payees). To associate such details with an invoice, you first need to select the them from the existing lists in Traact's database. Since these records are linked to other modules in the platform, they cannot be auto-filled by AI.

Additionally, AI accuracy may vary based on the invoice's format, size, and other factors. The uploader is responsible for reviewing each AI-generated line item and ensuring all missing information is added for any lines not captured.

Step 5: Once the invoice artifact is created, you can manage key details. See the key invoice fields below:

• Matter: To link the invoice to a legal matter, click “Link to Matter” and select the relevant artifact from the list. (This feature is available only for workspaces with access to the Matters module.)

• Invoice Number: Enter or generate an invoice number.

• Due Date: Select the invoice due date.

• Creator: This field is auto-populated and cannot be edited. It reflects the user who created the invoice artifact.

• Vendor: Select a vendor from the list in your Vendors Module. This step is essential because:

  • To link a line item to a specific Vendor Member and trigger the timekeeper summary, a Vendor must be selected.

  • When creating a line item, you can assign a timekeeper in the "Name" field based on the Vendor you selected. You have the options to:

    • To select an existing timekeeper, choose a name from the vendor member list.

    • To create a new member, click "Name" and select "Add New Member."

      • Enter the First Name (mandatory).

      • Optionally, add the Last Name and Email.

      • The new entry will be created under the selected Vendor.

  • Without selecting a vendor, you cannot choose an existing vendor member or create a new one, as every payee must be linked to a vendor.

• Cost Center: Choose a cost center from those available in your workspace.

• Currency: Currently, only USD is supported.

• Description: Add any relevant notes.

• Billing Guideline: The attached billing guideline document will be stored here.

• Attachment: The invoice document will be uploaded here.

• Activity: Tracks all changes made to the invoice for auditing purposes.

• Line items: Even if they were automatically generated through the AI, you can either edit or delete them under the Actions Column. You may also create line items manually and add key details such as:

• Code: Specifies the type of administration related to the invoice for proper categorization.

• Description: Provide a brief summary of the service provided.

• Name: Identifies the timekeeper responsible for the recorded work. This can only be selected from the existing Vendor Member list, or a new one can be created only if a vendor is assigned to the invoice.

• Hours: The total number of hours worked during the period.

• Minutes: Additional minutes worked beyond full hours.

• Rate per Hour ($): The hourly billing rate for the timekeeper. If a timekeeper is assigned different rates across multiple line items, separate entries will be displayed in the timekeeper's summary to reflect each rate.

• Total ($): The calculated total cost based on hours, minutes, and the hourly rate. This is automatically calculated by the platform, and if an incorrect amount is entered, it will return the correct amount.

• Timekeeper's summary: Automatically generated based on the line items, consolidating hours, rates, and total amounts for each timekeeper.

Step 6: Once all the details are filled in, click "Continue" at the bottom right of the invoice page to save and proceed to add Approvers and Payers.

• Approvers: multiple approvers may be assigned, but they must be registered users of the platform.

• Payor: Assign a single payor for the invoice, who also must be a registered Traact user.

Step 7: The invoice page will update to show a "Pending Approval" status. An Approvers and Payors section will appear alongside the rest of the invoice details on the left side of the page. These details can be updated at any time, and the Payor selection area also includes the option to mark the invoice as Paid.

How Invoice Artifacts Integrate with Other Modules

Invoice data is available in the Analytics module, offering valuable insights into spending trends by vendor, cost center, and matter type. This helps you effectively track and manage expenses across various categories.