No invoice for last year

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When no invoice is available for the months that are used in the weighted average methodology for last year, this condition impacts the calculation of an accrual value for the month with the gap.

In this scenario, the account has an invoice for either the month before the gap or the month after the gap. An account might also have an invoice for the same month last year and the month before the same month last year, but its value is outside a variance threshold.

Note: In this case, variance is calculated against the weighted average of the month before the gap and the month after the gap:

((Month before the gap + Month after the gap)/2)

Base accrual on weighted average of months near the gap

Table 1 describes the scenarios that result in the months immediately before and after the gap being used to calculate accruals. The table indicates whether an invoice exists for the month and whether a variance threshold is exceeded.

Table 1. Invoice scenarios that result in the months immediately before and after the gap being used to calculate accruals
Scenarios	Same month last year	Month before same month last year
1
2	Invoice exists but variance found	Invoice exists but variance found
3		Invoice exists but variance found
4	Invoice exists but variance found

Table 2 presents an example of the calculation that is applied when the month immediately before the gap is used in the accrual calculation.

Table 2. Calculation example when the month immediately before the gap is used in the accrual calculation
Month with gap	Accrual calculation
March 2023	((`Daily average value for Feb 2023` * 3) + (`Daily average value for April 2023`) 3)) / (3+3) `Number of missing days in March 2023`

Base accrual on weighted average of all months

Table 3 describes the scenario that results in all months being used in the accrual calculation. In this case, the same month last year and the month before the same month last year are within the variance threshold.

Table 3. Invoice scenario that results in all months used in the accrual calculation
Month before	Same month last year	Month before same month last year	Month after

Table 4 presents an example of the calculation that is applied when all months are used in the accrual calculation.

Table 4. Calculation example when all months are used in the accrual calculation
Month with gap	Accrual calculation
March 2023	((`Daily average value for Feb 2023`) * 3) + (`Daily average value for Feb 2022`) * 1) + (`Daily average value for Jan 2022`) * 1) + (`Daily average value for Apr 2023` * 3) / (3 + 1 + 1 + 3)) * `Number of missing days in March 2023`

Exclude same month last year in accruals

No invoice for last year describes the scenarios that result in all previous months, except same month last year, being used in the accrual calculation. In this scenario, the month before the same month last year has an invoice but the value is outside the variance threshold.

Table 5. Invoice scenario
Month before	Same month last year	Month before same month last year	Month after
	Invoice exists but variance found

Table 6 presents an example of the calculation that is applied when all previous months, except same month last year, are used in the accrual calculation.

Table 6. Calculation example when all previous months, except same month last year, are used in the accrual calculation
Month with gap	Calculation
March 2023	((`Daily average value for Feb 2023`) * 3) + (`Daily average value for Feb 2022`) * 1) + (`Daily average value for Apr 2023` * 3)) / ( 3 + 1 + 3) * `Number of missing days in March 2023`

Exclude month before same month last year in accruals

Table 7 describes the scenarios that result in all previous months, except month before same month last year, being used in the accrual calculation. In this scenario, the month before the same month last year has an invoice but the value is outside the variance threshold.

Table 7. Invoice scenarios that result in all previous months, except month before same month last year, being used in the accrual calculation
Month before	Same month last year	Month before same month last year	Month after
		Invoice exists but variance found

Table 8 presents an example the calculation that is applied when all previous months, except the month before same month last year, are used in the accrual calculation.

Table 8. Calculation example when all previous months, except the month before same month last year, are used in the accrual calculation
Month with gap	Calculation
March 2023	((`Daily average value for Feb 2023`) * 3) + (`Daily average value for March 2022`) * 1) + (`Daily average value for Apr 2023` * 3) ) / ( 3 + 1 + 3 ) * `Number of missing days in March 2023`