The Last Available Month accrual method is a seasonally adjusted accrual method that fills in data gaps in Accounts. It uses the last available month, relative to the data gap, to calculate the Accruals.
How does the algorithm work?
For any given missing period, data from its last available month prior to the gap is used to calculate the Accruals.
Accruals for Mar-2016 = Daily Average of February-2016 * # of missing days in Mar-2017
Accruals for Sep-2016 = Daily Average of Aug-2016 * # of missing days in Sep-2016
Accruals for Feb-2017; Mar-2017; and Apr-2016 = Daily Average of Jan-2017*# of missing days in Feb-2017; # of missing days in Mar-2017; # of missing days in Apr-2017
What if it is a new Account?
No Accruals will be generated for new Account until there is a first data entry.
Can the algorithm be used for cost estimation also?
Yes this method can be used for both Consumption and Cost Accruals.