Rate Per Hour Method

To calculate a fee billing line using the rate per hour method, the system multiplies the total invoice hours for the lines that you set up as cross-references by a rate per hour that you specify.

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

1. Accumulates invoice hours 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 rate that you specify.

If you select the Cumulative check box for a fee billing line that uses the rate per hour method, the R52121 calculates the fee amount using these steps:

1. Accumulates invoice hours 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 hours for the cross-reference lines from previous invoices to the current amounts.

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

4. Subtracts fee amounts from previous invoices.