This article expands the FAQ - What is the calculation logic behind each CVE "Rate Type" for Monthly CVE Rate Type to account for calculation logic between leap years and non-leap years.
Why This Happens: Leap Year Effect
A leap year occurs every 4 years (e.g., 2020, 2024, 2028), except for years divisible by 100 but not by 400.
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In a leap year, February has 29 days instead of 28.
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This additional day can affect calculations when determining whether a given period is counted as a full month for CVE purposes.
Example Scenario
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CVE Rate Type: Monthly
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Rate: 1,500 USD per month
Case 1: Non-Leap Year (e.g., 2023)
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Period:
28 Feb 2023, 03:00 GMT – 29 Mar 2023, 03:00 GMT(29 days) -
This duration is not treated as exactly one month, so the CVE amount will not be equals to 1,500 USD as per the monthly setting.
Case 2: Leap Year (e.g., 2024)
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Period:
28 Feb 2024, 03:00 GMT – 28 Mar 2024, 03:00 GMT(29 days) -
This duration is treated as exactly one month if CFGAlwaysProrateMonthlyTCRates is set to N, so the CVE amount will be equals to 1,500 USD as per the monthly setting.
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If CFGAlwaysProrateMonthlyTCRates is set to Y, the system will allocate the CVE amount according to the number of days from each month that fall within the invoice period.
Case 3: Non-Leap Year (e.g., 2025)
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Period:
28 Feb 2025, 03:00 GMT – 29 Mar 2025, 03:00 GMT(29 days) -
Same as 2023, this duration is not treated as one month, and the CVE amount will not be equals to 1,500 USD.
