id = "depreciation-catch-up-month"
title = "A month of depreciation skipped is caught up in the month the run is made"
rule = "A depreciation run for a month posts everything the schedule says is due through that month's end that the books don't carry, so a skipped month is caught up in it, and a later run for the skipped month posts nothing."
status = "CHOICE"
sources = ["ASC 360-10-35-4", "DECISION: plan/served.md P3, Settled in design (2026-10-20)"]
tags = ["depreciation", "catch-up", "skipped-month", "p3"]

[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" }

# February is skipped; March is run.
[[events]]
run_depreciation = { asset = "X", period = "2026-03" }

# February run afterwards: nothing is due (March caught it up).
[[events]]
run_depreciation = { asset = "X", period = "2026-02" }

# Hand check (worked without the code): the schedule through Mar 31 is
# 3 x 1,000.00 = 3,000.00; January's run carried 1,000.00, so March's run
# posts 2,000.00 (its own 1,000.00 and February's, caught up). February's
# run then posts 0.00: the books already carry the schedule through
# February's end and beyond.
[[expect]]
query = "run"
event = 4

[expect.values]
amount = "2000.00"
caught_up = "1000.00"

[[expect]]
query = "run"
event = 5

[expect.values]
amount = "0.00"
caught_up = "0.00"

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

[expect.values]
"1510" = "-3000.00"
"6200" = "3000.00"