Labor Category Method
To calculate fees for a contract using the labor category method, the system accumulates the hours and amounts from the Workfile Detail table (F4812) by labor category that are associated with the lines that you cross-reference to the fee line. The system then either multiplies the hours by a rate per hour, or multiplies the amounts by a percentage. To determine whether to use a percentage or a rate per hour, the system uses the values specified in these fields in the Contract Specific Labor Categories program (P52G20) for each labor category for the contract:
Fees Calculated
The value for this field must be Y.
Fee Rate Type
The value in this field can be either 1, to indicate that the fee calculation is an amount per hour, or 2, to indicate that fee calculation is a percentage.
Fee Rate
If the fee rate type is 1, the number in this field represents a rate to be multiplied by the total hours. If the fee rate type is 2, the number in this field represents a percentage to be multiplied by the total amount.
If you do not select the Cumulative check box for a fee billing line that uses the labor category method, the Invoice Generation program (R52121) calculates the fee using these steps:
Accumulates all hours and amounts from all of the records in the Workfile Detail table (F4812), by labor category that are associated with the lines that are cross-referenced to the fee line.
Retrieves the fee rate type and the fee rate for each labor category that has accumulated amounts or hours using the values in the Contract Number, Job Number, and Job Type fields.
Multiplies the accumulated hours by the rate per hour for all records for which the fee rate type is rate per hour for the labor category.
Multiplies the accumulated amounts by the fee percentage for all records for which the fee rate type is percentage for the labor category.
If you select the Cumulative check box, the R52121 program calculates the fee using these steps:
Accumulates all hours and amounts from all of the records in the Workfile Detail table (F4812), by labor category that are associated with the lines that are cross-referenced to the fee line.
Retrieves the fee rate type and the fee rate for each labor category that has accumulated amounts using the values in the Contract Number, Job Number, and Job Type fields.
Adds invoice amounts for the cross-reference lines from previous invoices to the current hours and amounts.
Multiplies the accumulated hours by the rate per hour for all records for which the fee rate type is rate per hour for the labor category.
Multiplies the accumulated amounts by the fee percentage for all records for which the fee rate type is percentage for the labor category.
Subtracts fee amounts from previous invoices.
When you set up a fee billing line using the labor category method, you must also specify a default percentage for the system to use when it finds records in the F4812 table that do not have a specific labor category assigned to them.