SM
Scott Margetts
/

Invoice Review Compliance

Reviews outside counsel invoices against billing guidelines, flags non-compliant entries by category, and produces the documents needed to approve, reduce, reject, and communicate those decisions. Covers the full invoice compliance workflow: line-item review through to formal firm escalation. Works with or without an e-billing platform. Where an e-billing system is in place, LEDES format and UTBMS coding are hard gates. Where there is no e-billing system, invoice submission by email is the channel and UTBMS coding is a best-efforts flag.

162 views
159 downloads

invoice-review-compliance

OCM Skills Plugin — Skill 6 of 8
Status: Complete — Phase 1 and Phase 2 tested


What this skill does

Reviews outside counsel invoices against billing guidelines, flags non-compliant entries by category, and produces the documents needed to approve, reduce, reject, and communicate those decisions. Covers the full invoice compliance workflow: line-item review through to formal firm escalation.

Works with or without an e-billing platform. Where an e-billing system is in place, LEDES format and UTBMS coding are hard gates. Where there is no e-billing system, invoice submission by email is the channel and UTBMS coding is a best-efforts flag.


Modes

Mode Trigger Output
1 — Invoice Line-Item Review "Review this invoice" / "Flag the billing issues" / "Check against our guidelines" Line-Item Review Report + Invoice Approval Note
2 — Invoice Rejection Communication "Write the rejection letter" / "Communicate the reductions to the firm" Invoice Rejection Letter + Internal Rejection Record
3 — Review Process Setup "Build an invoice checklist" / "How should we review invoices?" / "Set up our review process" Invoice Review Checklist + Reviewer Guidance Note
4 — Compliance Pattern Analysis "The firm keeps doing this" / "Recurring violations" / "Escalate the billing issue" Compliance Pattern Summary + Formal Non-Compliance Notice

Mode 5 — Conversation Guide: a structured guide for less mature teams preparing for a billing conversation with outside counsel, produced when the team needs to raise compliance issues but lacks the process maturity for a formal non-compliance notice.


Key design decisions

Rule vs. guideline distinction. Four action values — REJECT, REDUCE, APPROVE WITH NOTE, APPROVE — map to the rule/guideline distinction. REJECT for hard OCG breaches (prohibited fees, rate violations, block billing). REDUCE for discretionary judgments (excessive time, description quality). The distinction makes review decisions defensible.

Seven-phase review checklist. Mode 3 sequences review in the order a reviewer would actually work: mechanical checks → line-item review → prohibited fees → expenses → UTBMS coding → internal comms threshold → budget. REJECT-heavy phases front-loaded.

Upstream cause documented. Domain knowledge explicitly connects billing compliance failures to instruction quality. Mode 4 pattern analysis prompts: is this a firm failing or an instruction gap? Cross-reference to matter-allocation-instruction Mode 4 (Instruction Audit).

PDF invoice ingestion. Mode 1 accepts uploaded PDF invoices. The skill extracts line items and maps them against billing guidelines without requiring the user to reformat.


Violation categories

Category Action Examples
Block billing REJECT Multiple tasks with different UTBMS codes in a single entry
Prohibited fees REJECT Invoice prep, conflict checks, training, ramp-up, clerical work
Rate violation REJECT Unapproved rate, unapproved timekeeper, volume discount not applied
Staffing violation REJECT or REDUCE Multiple timekeepers at event without approval, daily hours cap exceeded
Description violation REDUCE or APPROVE WITH NOTE "Services rendered", "Document review" — no specific task described
Internal comms excess REDUCE Internal firm communications >10% of invoice total
Expense violation REJECT or REDUCE Overhead expenses, first-class travel, expense markups
Late submission REDUCE 60+ days late: 20% reduction; 90+ days: possible rejection

Placement in the OCM lifecycle

Stage Skill
Billing rules engagement-terms-billing-guidelines (Skill 1)
Panel design panel-design-selection (Skill 2)
Firm selection rfp-pitch-management (Skill 3)
Fee arrangements fee-arrangement-structuring (Skill 4)
Matter instruction matter-allocation-instruction (Skill 5)
Invoice review invoice-review-compliance (Skill 6) ← this skill
Performance management performance-scorecard (Skill 7)
Panel review panel-review-rationalisation (Skill 8)

Cross-skill connections

Skill Connection
engagement-terms-billing-guidelines (Skill 1) The OCG defines the rules this skill enforces. Mode 3 checklist reflects Skill 1 output.
fee-arrangement-structuring (Skill 4) Fee arrangement type determines invoice structure. Fixed fee invoices reviewed differently from hourly.
matter-allocation-instruction (Skill 5) Instruction gaps are the upstream cause of most compliance failures. Mode 4 pattern analysis prompts the instruction gap check.
performance-scorecard (Skill 7) Invoice compliance data feeds the billing adherence component of the performance scorecard.

Testing

Phase 1 and Phase 2 test prompts and assertion sets are in the build log.


Files

  • invoice-review-compliance/SKILL.md — skill instructions
  • invoice-review-compliance-README.md — this document

Licence

Apache 2.0 — LegalOps Consulting Limited