Example 2
In this example, you set up a fee billing line using the labor category method and you select the Cumulative check box. The default percentage for lines that do not have a labor category assigned to them is 25 percent. You generate one invoice and then a second invoice, without changing any of the rates or percentages.
This table lists the hours and amounts for the first invoice that the system accumulates from the F4812 table for the contract and the fee rate types for each of the labor categories:
Labor Category |
Accumulated Invoice Hours or Amounts (current invoice) |
Accumulated Invoice Hours or Amounts (previous invoices) |
Fee Rate Type |
Fee Rate |
---|---|---|---|---|
ADMN |
20 hours |
0 hours |
Rate per hour |
5.00 USD |
TECH1 |
30 hours |
0 hours |
Rate per hour |
7.00 USD |
TECH2 |
300.00 USD |
0.00 USD |
Percentage |
10 percent |
TECH3 |
500.00 USD |
0.00 USD |
Percentage |
15 percent |
Non-specific labor categories |
400.00 USD |
0.00 USD |
Percentage |
25 percent |
To calculate the fee, the system uses the following equation:
((20 + 0) x 5.00) + ((30 + 0) x 7.00) + ((300 + 0) x .10) +((500.00 + 0) x .15) + (400.00 + 0) x .25) – 0.00 USD = 515.00 USD
This table lists the hours and amounts for the second invoice that the system accumulates from the F4812 table for the contract and the fee rate types for each of the labor categories:
Labor Category |
Accumulated Invoice Hours or Amounts (current invoice) |
Accumulated Invoice Hours or Amounts (previous invoices) |
Fee Rate Type |
Fee Rate |
---|---|---|---|---|
ADMN |
25 hours |
20 hours |
Rate per hour |
5.00 USD |
TECH1 |
35 hours |
30 hours |
Rate per hour |
7.00 USD |
TECH2 |
350.00 USD |
300.00 USD |
Percentage |
10 percent |
TECH3 |
550.00 USD |
500.00 USD |
Percentage |
15 percent |
Non-specific labor categories |
450.00 USD |
400 USD |
Percentage |
25 percent |
To calculate the fee, the system uses the following equation:
((25 + 20) x 5.00) + ((35 + 30) x 7.00) + ((350 + 300) x .10) + ((550.00 + 500.00) x .15) + ((450.00 + 400.00) x .25) – 515.00 = 600.00 USD