Example 3
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, change the LOE hours on the funding level contract, and then generate a second invoice.
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, after you change the LOE hours:
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 |
---|---|---|---|---|---|---|---|
200 |
F |
10,000.00 USD |
30 |
20 |
2,000.00 USD |
((30 + 20) / 200 x 10,000) – 2,000 |
500.00 USD |