Example 3
In this example, you set up a fee billing line using the rate per hour method and you select the Cumulative check box. You generate one invoice, change the rate per hour, and then generate a second invoice.
This table describes how the system calculates the fee for the first invoice:
Rate Per Hour |
Accumulated Invoice Hours (current invoice) |
Accumulated Invoice Hours (previous invoices) |
Fee Amount from Previous Invoices |
Calculation |
Fee Amount |
---|---|---|---|---|---|
10.00 USD |
20 |
0 |
0.00 USD |
((20 + 0) x 10.00) – 0.00 |
200.00 USD |
This table describes how the system calculates the fee for the second invoice, after you change the rate per hour:
Rate Per Hour |
Accumulated Invoice Hours (current invoice) |
Accumulated Invoice Hours (previous invoices) |
Fee Amount from Previous Invoices |
Calculation |
Fee Amount |
---|---|---|---|---|---|
15.00 USD |
30 |
20 |
200.00 USD |
((20 + 30) x 15.00) – 200.00 |
550.00 USD |