Example 3

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, change the fee rates and percentages, and generate a second invoice.

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, the fee rate types for each of the labor categories, and the changed fee rates:

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	15.00 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	20 percent
Non-specific labor categories	450.00 USD	400.00 USD	Percentage	25 percent

To calculate the fee, the system uses the following equation:

((25 + 20) x 15.00) + ((35 + 30) x 7.00) + ((350 + 300) x .10) + ((550.00 + 500.00) x .20) + ((450.00 + 400.00) x .25) – 515.00 = 1101.50 USD