Example 1

In this example, you set up a fee billing line (billing line type F) using the LOE at labor category method for a contract for which the value in the Billing Limit field is Funded by Line and the funded fee amount is 10,000 USD. You do not select the Cumulative check box for the fee billing line. You generate one invoice, change the funded fee amount to 15,000. USD, and then generate a second invoice.

This table lists the accumulated hours for three labor categories and the associated LOE hours:

Labor Category	Accumulated Invoice Hours for Labor Category	LOE Hours for Labor Category
ADMIN	100	500
TECH1	50	300
TECH2	75	200

The total number of LOE hours required for the three labor categories is 1000 (500 + 300 + 200).

To calculate the fee for the first invoice, the system uses this equation:

((500 / 1000 x 10,000) x (100 / 500)) + ((300 / 1000 x 10,000) x (50 / 300)) + ((200 / 1000 x 10,000) x (75 / 200)) = 2250.00 USD

This table lists the accumulated hours for the same three labor categories in the preceding table for the second invoice. For this invoice, the funded fee amount has changed to 15,000.00 USD:

Labor Category	Accumulated Invoice Hours for Labor Category	LOE Hours for Labor Category
ADMIN	150	500
TECH1	40	300
TECH2	80	200

Because you have not changed any of the LOE hours since the first invoice, the total number of LOE for the three labor categories is 1,000.

To calculate the fee for the second invoice, the system uses this equation:

((500 / 1000 x 15,000) x (150 / 500)) + ((300 / 1000 x 15,000) x (40 / 300)) + ((200 / 1000 x 15,000) x (80 / 200)) = 4050.00 USD