Example 2

In this example, you set up a fee billing line using the LOE at funding level method. The funding level contract for the billing lines is set up to use the Funded By Line for the Billing Limit method. You select the Cumulative check box for the fee billing line. You generate one invoice and then generate a second invoice, without changing the LOE hours.

This table describes how the system calculates the fee amount for the first invoice:

LOE Hours on the Funding Level Contract	Billing Line Type	Funded Fee Amount on the Funding Level Contract	Accum. Hours (current invoice)	Accum. Hours (previous invoices)	Fee Amount from Previous Invoices	Calculation	Fee Amount
100	F	10,000.00 USD	20	0	0.00 USD	((20 + 0) / 100 x 10,000) – 0.00	2, 000.00 USD

This table describes how the system calculates the fee amount for the second invoice:

LOE Hours on the Funding Level Contract	Billing Line Type	Funded Fee Amount on the Funding Level Contract	Accum. Hours (current invoice)	Accum. Hours (previous invoices)	Fee Amount from Previous Invoices	Calculation	Fee Amount
100	F	10,000.00 USD	30	20	2,000.00 USD	((30 + 20) / 100 x 10,000) – 2,000	3,000.00 USD