How does Oracle apply capping on a contract line during billing?

For project billing, when the cumulative invoiced amount exceeds the contract line, how does Oracle decide which transaction to cap? For example, C35027, the most recent invoice, oracle is billing 36.4865 hours for Nicholas Kruskamp. How did it pick him to reduce his total charged hours?

So does this follow hierarchy during Generate Invoice like

Sorts all eligible billable expenditure items by: Expenditure Item Date (latest first), Then by creation date, Then by expenditure item ID, then Applies billing until the contract line limit is reached? The last transactions in the order are the ones that get:Partially billed?