id = "schedule-equal-months-start-on-the-first"
title = "An equal-months schedule starts on the 1st of a month"
rule = "A schedule that spreads its total in equal months must start on the 1st of a month, for prepaid expenses and deferred revenue alike, so it never recognizes days it does not cover."
status = "CHOICE"
sources = ["ASC 606-10-25-23", "DECISION: plan/served.md D-37 (owner, 2026-10-20)"]
tags = ["schedules", "monthly-even", "refusal", "p3-defect-9"]

[setup]
currency = "USD"
fiscal_year_start = "01-01"
basis = "accrual"
# Equal months keep the rounding schedules had before P3 (each month the
# total over the months to the cent, ties to even; the last month takes
# what the others leave): a posted month's replay re-derives its plan.
rounding = "half-even"

[[setup.accounts]]
code = "1300"
name = "Prepaid Expenses"
type = "asset"

[[setup.accounts]]
code = "2400"
name = "Deferred Revenue"
type = "liability"

[[setup.accounts]]
code = "4000"
name = "Subscription Revenue"
type = "revenue"

[[setup.accounts]]
code = "6300"
name = "Insurance"
type = "expense"

# Equal months from March 15: refused (it would recognize all of March's
# 100.00, 45.16 of it, March 1 to 14 at 100.00 × 14/31, before the service
# began). The refusal names the 1st.
[[events]]
register_schedule = { id = "MID", kind = "deferred_revenue", description = "Annual plan", total = "1200.00", start = "2026-03-15", months = 12, convention = "monthly_even", balance_account = "2400", pl_account = "4000" }
refused = "invalid_schedule"

# The same for a prepaid expense: one rule for both.
[[events]]
register_schedule = { id = "MIDP", kind = "prepaid_expense", description = "Insurance", total = "1200.00", start = "2026-03-15", months = 12, convention = "monthly_even", balance_account = "1300", pl_account = "6300" }
refused = "invalid_schedule"

# From the 1st it is taken: twelve equal months.
[[events]]
register_schedule = { id = "FIRST", kind = "deferred_revenue", description = "Annual plan", total = "1200.00", start = "2026-03-01", months = 12, convention = "monthly_even", balance_account = "2400", pl_account = "4000" }

# Hand check (worked without the code): 1,200.00 / 12 = 100.00, every
# month, the last absorbing no rounding.
[[expect]]
query = "schedule_plan"
schedule = "FIRST"

[expect.values]
"2026-03-31" = "100.00"
"2026-09-30" = "100.00"
"2027-02-28" = "100.00"
total = "1200.00"