Percent of Cost Method

To calculate the fee amount using the percent of cost method, the system multiplies the total invoice amount for the lines that you set up as cross-references by a percentage that you specify.

If you do not select the Cumulative check box for the fee billing line that uses the percent of cost method, the Invoice Generation program (R52121) calculates the fee amount using these steps:

1. Accumulates invoice amounts from all records in the Invoice Summary table (F4822) that are associated with the lines that are cross-referenced to the fee line for the current invoice.

2. Multiplies the total by the percentage that you specify.

If you select the Cumulative check box, the R52121 program calculates the fee amount using these steps:

1. Accumulates invoice amounts from all records in the Invoice Summary table (F4822) that are associated with the lines that are cross-referenced to the fee line for the current invoice.

2. Adds invoice amounts for the cross-reference lines from previous invoices to the current amount.

3. Multiplies the total by the percentage that you specify.

4. Subtracts fees from previous invoices.