id = "depreciation-reversal-before-its-run-is-refused"
title = "A depreciation run can't be reversed on a day before its own"
rule = "A correction comes after what it corrects: a depreciation run, or a reversal of one, can't be reversed on a day before its own. A run of March reversed on Jan 31 would leave January and February with negative depreciation."
status = "CONVENTION"
sources = [
  "Pacioli 1494, ch. 31",
  "wanderbooks docs/spec/rules.md B-15 rule 6, B-9: a correction comes after what it corrects (CONVENTION)",
]
tags = ["depreciation", "reversal", "refusal", "p3-defect-22"]

[setup]
currency = "USD"
fiscal_year_start = "01-01"
basis = "accrual"
rounding = "half-away-from-zero"

[[setup.accounts]]
code = "1000"
name = "Bank"
type = "asset"

[[setup.accounts]]
code = "1500"
name = "Equipment"
type = "asset"

[[setup.accounts]]
code = "1510"
name = "Accumulated Depreciation"
type = "asset"

[[setup.accounts]]
code = "3000"
name = "Capital"
type = "equity"

[[setup.accounts]]
code = "6200"
name = "Depreciation Expense"
type = "expense"

[[setup.accounts]]
code = "7100"
name = "Gain or Loss on Disposal"
type = "revenue"

# Asset X: 12,000.00, no salvage, 12 months from 2026-01-01 (1,000.00 a
# month; December the final month).
[[setup.assets]]
id = "X"
description = "Asset X"
cost = "12000.00"
salvage = "0.00"
life_months = 12
in_service = "2026-01-01"
method = "straight_line"
cost_account = "1500"
accumulated_account = "1510"
expense_account = "6200"

[[events]]
date = "2026-01-01"
description = "Capital"
lines = [
  { account = "1000", side = "debit", amount = "12000.00" },
  { account = "3000", side = "credit", amount = "12000.00" },
]

[[events]]
date = "2026-01-01"
description = "Bought asset X"
lines = [
  { account = "1500", side = "debit", amount = "12000.00" },
  { account = "1000", side = "credit", amount = "12000.00" },
]

[[events]]
run_depreciation = { asset = "X", period = "2026-01" }

[[events]]
run_depreciation = { asset = "X", period = "2026-02" }

[[events]]
run_depreciation = { asset = "X", period = "2026-03" }

# March's run (dated Mar 31) reversed on Feb 10: refused, naming its date.
[[events]]
date = "2026-02-10"
description = "Reverse event 5"
reverses = 5
refused = "entry_irreversible"

# On its own day it is taken.
[[events]]
date = "2026-03-31"
description = "Reverse event 5"
reverses = 5

# Hand check (worked without the code): January and February carry
# 2,000.00 at February's end, never 1,000.00 (with March's 1,000.00 taken
# away on Feb 10); March's end carries 2,000.00 (its run and its reversal
# both dated Mar 31).
[[expect]]
query = "balances"
as_of = "2026-02-28"

[expect.values]
"1510" = "-2000.00"
"6200" = "2000.00"

[[expect]]
query = "balances"
as_of = "2026-03-31"

[expect.values]
"1510" = "-2000.00"
"6200" = "2000.00"