Example - Cost accruals with accrued data using the "Last Invoice" accrual method
The example in this topic shows how missing cost data is populated with accrued data.
In the following example, an electricity account has the following cost data:
- Cost data is required from 16 of March to 1 June.
- The invoice start period 16 March 2023
- The invoice end period is 15 April 2023
Total cost of latest
bill / Total number of days of latest bill
. In the example, the cost per latest invoice is $310. Cost data is missing for 15 days in April and 31 days in May.
Accrual data for cost is calculated as follows:
- Daily average cost is calculated as $310 / 31, which is $10 per day.
- Cost accruals for the missing days in April 2023 are 15 days * $10 per day, which is $150.
- Cost accruals for missing days in May 2023 are 31 days * $10 per day, which is $310.