id = "schedule-daily-deferred-revenue"
title = "Deferred revenue is earned by the day, to the cent"
rule = "Revenue collected in advance for a service over time is recognized as each day of the service passes, one posting per calendar month, the last month taking what the others leave."
status = "CHOICE"
sources = ["ASC 606-10-25-23", "DECISION: plan/served.md D-11, D-37 (owner, 2026-10-20)"]
tags = ["schedules", "deferred-revenue", "daily", "p3-defect-9"]

[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 = "2400"
name = "Deferred Revenue"
type = "liability"

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

# 1,000.00 collected for service 2026-01-05 through 2026-04-04.
[[setup.schedules]]
id = "SUB"
kind = "deferred_revenue"
description = "Quarterly plan, a customer"
total = "1000.00"
start = "2026-01-05"
months = 3
convention = "daily"
balance_account = "2400"
pl_account = "4000"

[[events]]
date = "2026-01-05"
description = "Collected a quarter up front"
lines = [
  { account = "1000", side = "debit", amount = "1000.00" },
  { account = "2400", side = "credit", amount = "1000.00" },
]

[[events]]
run_schedules = { through = "2026-04-30" }

# Hand check (worked without the code): January holds 27 of its 31 days
# (5-31); February and March are whole; April holds days 1-4 and takes the
# rest. Cumulative at each month end: 1,000 x (27/31)/3 = 290.3226 ->
# 290.32; 1,000 x (27/31 + 1)/3 = 623.6559 -> 623.66; 1,000 x (27/31 +
# 2)/3 = 956.9892 -> 956.99; then 1,000.00. Months: 290.32, 333.34,
# 333.33, 43.01.
[[expect]]
query = "schedule_plan"
schedule = "SUB"

[expect.values]
"2026-01-31" = "290.32"
"2026-02-28" = "333.34"
"2026-03-31" = "333.33"
"2026-04-30" = "43.01"

# Earned through March: 956.99; still owed for April 1-4: 43.01.
[[expect]]
query = "balances"
as_of = "2026-03-31"

[expect.values]
"2400" = "43.01"
"4000" = "956.99"