Percent of Limit Method

To calculate the fee amount for a fee billing line using the percent of limit method, the system multiplies the percentage that you specify by the appropriate limit amount on the funding level contract. To determine which limit amount to multiply by the percentage, the system uses a combination of the values in these two fields:

• Billing Limit field on the funding level contract

  If the value in this field is either Awarded By Line or Awarded By Total, the system uses the awarded limit amounts for the funding level contract. If the value is Funded By Line or Funded By Total, the system uses the funded limit amounts.

  Note: If the value in the Billing Limit field for the funding level contract is No Limit, you cannot use the percent of limit calculation method.

• BL (billing line type) field on the fee billing line.

  If the billing line type is A, the system uses either the awarded or funded award fee amounts, depending on the value in the Billing Limit field for the funding level contract. If the billing line type is F or 4, the system uses either the awarded or funded fee amounts, depending on the value in the Billing Limit field for the funding level contract.

This table describes how the system determines which amount to use in the fee calculation:

Billing Limit	Billing Line Type	Limit Amount Used for Fee Calculation
Awarded By Line or Awarded By Total	A	Awarded award fee amount
Awarded By Line or Awarded By Total	F or 4	Awarded fee amount
Funded By Line or Funded By Total	A	Funded award fee amount
Funded By Line or Funded By Total	For 4	Funded fee amount

Because the percent of limit value method uses the contract limits in the fee calculation instead of invoice amounts, you do not set up cross-reference lines for this method. However, in addition to specifying the percentage, you must also specify whether the fee amount is a recurring fee amount, or a one time occurrence. If you indicate that the fee amount is recurring, you must also specify a frequency code, such as M for monthly, or W for weekly.

If you do not select the Cumulative check box for a fee line that uses the percent of limit value method, the Invoice Generation program (R52121) calculates the fee amount by multiplying the percentage that you specify by the appropriate limit amount. If you select the Cumulative check box, the R52121 program multiplies the percentage that you specify by the appropriate limit amount, and also subtracts any fee amounts from previous invoices for this billing line and any other fee or award fee lines for this contract.