Mayday looks at your recent transaction history and suggests accruals and reversals for you to review. This article explains how those suggestions are worked out.
How suggestions are generated
Mayday reviews the last three months of transactions and looks for repeating patterns. A pattern is a recurring combination of the same account, contact and tracking categories.
When that combination has a gap in the current period, Mayday suggests an accrual to fill it. The amount is the average of the last three months for that combination.
Worked example
A sales invoice is posted to the same account and contact each month: £4,684.74 in June, £4,684.74 in July and £4,684.74 in August. By the September month-end the invoice hasn't come through yet, so Mayday suggests an accrual of £4,684.74, the average of the last three months.
Bills charged annually or quarterly
Mayday also reads transaction descriptions for terms like "annual" and "quarterly". It uses these to work out when a cost is next due and suggests the accrual in the right period.
For example, a rent bill charged quarterly in March will be suggested again in June.
Part-period bills
Some bills cover days that fall in two different months. When that happens, Mayday suggests the full amount rather than splitting it by the days in each month. For example, a bill running from 28 September to 2 October covers the last few days of September and the first couple of October, but Mayday will suggest the whole amount in one month.
You stay in control of every suggestion: approve, edit or reject each one. For how to do that, see How to use the AI suggestions.