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