Adventures in Dependently Typed Accounting

Posted on September 6, 2019

This article is the third installment of a series of articles exploring connection between Domain Driven Design and Dependent types as implemented in Idris. It’s been written as prepaatory work to a talk given at the Okiwi meetup in Bordeaux.

Although it took me more than 2 years to write a sequel to my previous post on the subject of DDD + T(ype)DDD, it’s a subject that I keep having in the back of my mind and something I try to apply in my day job wherever it’s possible. This time, I am investigating how to write a double-entry bookkeeping module in Idris, in the spirit of ledger and hledger. Of course, what I wrote is nowhere near as full-featured as hledger, it’s mostly a proof-of-concept that only allows one to parse a ledger-formatted file and pretty-prints back its content.

What’s interesting in double-entry accounting is that it’s a “business-domain” that is relatively simple to explain and understand, grounded on some basic invariants that should be enforced to guarantee transactions and ledger stay consistent. This post won’t go into the details of the code which can be found in a github repository. It’s more of a narrative on the design choices I made and what it entails to write such code in Idris, trying to highlights both the strengths of the language and its weaknesses, or its darker corners.

I would like to say a big “Thank you!” to the smart and friendly people from the #idris channel who have helped me write most of the proofs in this code, providing advices and direction on how to approach proof-writing in such a language.

Basic Concepts

Here is an excerpt from Wikipedia page on double-entry bookkeeping:

In the double-entry accounting system, at least two accounting entries are required to record each financial transaction. These entries may occur in asset, liability, equity, expense, or revenue accounts. Recording of a debit amount to one or more accounts and an equal credit amount to one or more accounts results in total debits being equal to total credits for all accounts in the general ledger. If the accounting entries are recorded without error, the aggregate balance of all accounts having Debit balances will be equal to the aggregate balance of all accounts having Credit balances. Accounting entries that debit and credit related accounts typically include the same date and identifying code in both accounts, so that in case of error, each debit and credit can be traced back to a journal and transaction source document, thus preserving an audit trail. The accounting entries are recorded in the “Books of Accounts”. Regardless of which accounts and how many are impacted by a given transaction, the fundamental accounting equation of assets equal liabilities plus capital will hold.

From this description we get some basic information about the “domain” that we’ll want to implement:

From these elements, we can start to code and first of all define the types we’ll need. The whole point of this series of post is to apply DDD principles to Type-Driven Development which means we want our domain concepts to be reflected directly into the core domain of our code. So we end up needing the following types:

Take 1

Equipped with all this information, I started implementing the various data types, embedding the needed invariants within the definition of the types. My initial version looked like the following (see Core.idr for details).

Core Domain

The Balance is a simple alias for a tuple of a Nat and a Direction (debit or credit) and the other core types are straightforward:

Balance : Type
Balance = (Nat, Direction)

data Account : Type where
  MkAccount : String -> { type : AccountType } -> Account

record Entry where
  constructor MkEntry
  amount : Balance
  account : Account

Then a Transaction contains Entries of length at least 2 and with a Balance of (0, Cr).

data Entries : Type where
  MkEntries : (entries : Vect n Entry) ->
              { auto need2Entries : LTE 2 n } ->
              { auto balanced : balance entries = (0, Cr) } ->

record Transaction where
  constructor Tx
  label : String
  date : Date
  entries : Entries

The balance function computes the aggregated balance of a list of entries, taking advantage of the fact our Balance type is a Monoid:

balance : Vect n Entry -> Balance
balance =  normalise . concat . map amount

The normalise function is needed because a 0 balance can be either a Dr or Cr. More on this later…

    normalise : Balance -> Balance
    normalise (Z, Dr) = neutral
    normalise bal     = bal

And we are then ready to define our BookOfAccounts type to group a sequence of transactions:

data BookOfAccounts : Type where
  BookTransactions : (txs : Vect k Transaction) ->
                     { auto fundamentalEquation : invert (assets txs <+> expenses txs) = liabilities txs <+> capital txs <+> revenues txs } ->

Note that we have modified the fundamentalEquation to take into account expenses and revenues. It is actually the case that asset = liability + equity only when taking into account the profit or deficit that is the difference between revenues and expenses. In actual accounting practices, a “normal” transaction always involves an expense or revenue account and one or more balance sheet account.


One of the benefits of using a Type-Driven Approach in a language like Idris is that we can use the compiler/typechecker to run tests, instead of having to define separate test suites.

Given some Accounts definitions:

Capital : Account
Capital = MkAccount "Capital" {type = Equity}

Bank : Account
Bank = MkAccount "Bank" {type = Asset}

We can use propositional equality, that is the Type asserting that two expressions are the same, as a way to assert some property holds, and then prove the property actually holds by providing an implementation for it that will be typechecked:

valid1 : balance [ MkEntry (100, Dr) Bank,
                  MkEntry (100, Cr) Capital ] = (0, Cr)
valid1 = Refl

valid2 : balance [ MkEntry (100, Cr) Bank,
                  MkEntry (100, Dr) Capital ] = (0, Cr)
valid2 = Refl

Interestingly we can also state negative properties by proving there can never be an implementation for this type:

invalid : Not (balance [ MkEntry (100, Cr) Bank,
                         MkEntry (101, Dr) Capital ] = (0, Cr))
invalid = \ Refl impossible

And those tests found a bug in my code! The order in which the entries were given in a transaction mattered as I had forgotten to recursively call the accumulation function in one case.


Once we have our core model’s types defined, we can try to talk to the outside world. Here, we’ll simply parse a list of transactions in the ledger format:

2019-01-01 Some transaction
  Asset:Bank  D 100
  Equity:Capital C 100

2019-01-02 Another transaction
  Asset:Bank C 90
  Expense:Foo D 80
  Liability:Tax D 10

and ensure we are able to pretty-print it in the same format.

I use the lightyear parser combinators library which is pretty-much a clone of Haskell’s parsec and is similar to every other parser combinators library out there. What’s more relevant to our purpose is the fact that the types I have defined enforce their invariant at the constructor level which means they require the calling context to provide the proofs those invariants are indeed valid.

In the parseEntries function for example, we need to make sure provide a sequence of the correct length (at least 2) and a proof that the entries are balanced in order to build an Entries value.

parseEntries : Parser Entries
parseEntries = do
  e1 <- parseEntry
  e2 <- parseEntry
  es <- sepBy parseEntry endOfLine
  let entries = e1 :: e2 :: fromList es
  case decEq (balance entries) Zero of
    (Yes prf) => pure $ MkEntries entries
    (No  _)   => fail "Entries are not balanced, total debits minus total credits should be 0"

In other words, there is no way2 to build an invalid value and the Idris type system guarantees our core model will stay consistent at compile time. Applying a Ports and adapters or Hexagonal Architecture strategy leaves no room for introducing errors in our core model, completely alleviating the need to have such validation concerns (eg. checking values range, lengths, validate data…) leak into the model’s code.


I was pretty happy with myself, patting me in the back for having succeeded in modelling double-entry bookkeeping in a nice simple type-safe model. Then I realised that implementing Monoid Balance was the first step, I still needed to prove the monoid laws hold for my type and <+> operation. This is when things started to go awry…

The proof for neutral element is short but already highlights the main issue:

rightNeutralBalance : (x : Balance) -> (x <+> (0, Cr) = x)
rightNeutralBalance (n, Cr) = rewrite plusZeroRightNeutral n in Refl
rightNeutralBalance (Z, Dr) = believe_me "special case for zero debit"
rightNeutralBalance (S n, Dr) = Refl

The problem is that there really are two neutral elements, a 0 debit and a 0 credit. I have chosen to consider the canonical neutral element to be (0, Cr) but that’s just a convention which comes bite me in the back when trying to prove things: I am forced to use the magic believe_me function to lure the typechecker in the (0, Dr) case.

Things get even worse when trying to prove associativity:

associativeBalance : (x : Balance) -> (y : Balance) -> (z : Balance) -> (x <+> (y <+> z) = (x <+> y) <+> z)
associativeBalance (a, Dr) (b, Dr) (c, Dr) = rewrite plusAssociative a b c in Refl
associativeBalance (a, Cr) (b, Cr) (c, Cr) = rewrite plusAssociative a b c in Refl
associativeBalance (a, Dr) (b, Cr) (c, Cr) with (order {to=LTE} a (plus b c))
  | (Left l) with (order {to=LTE} a b)
    | (Left x) = rewrite minusPlusPlusMinus b c a in Refl
    | (Right r) with (order {to=LTE} (a - b) c)
      | (Left x) = rewrite minusPlusMinusMinus b c a in Refl
      | (Right x) = ?hole_4

What happens here is that I got caught in a maze of lemmas involving various combinations of plus and minus operations, which unvoidably would end in the need to prove that Dr = Cr which, obviously, would fail or need some magic axiom.

After much struggling with the typechecker and discussion on slack, I realised this proof was problematic because the underlying types were fatally flawed. As brillantly stated by Ohad Kammar:

Since it’s going to be impossible to get Idris to recognise all false statements automatically, the best we can hope for is that proving false statements is going to get more and more difficult until the programmer gives up

The types are wrong because I am conflating two concepts: The Balance resulting from aggregating one or more entries for some account(s), and the Amount of each entry, along with a direction (Debit or Credit). Although they both are integral values with a “sign”, they have different meaning in the domain and different behaviour: A Balance can be 0, whereas an entry’s Amount cannot.

Moreover, the structure of the Balance type is also wrong and some form of premature optimisation: Instead of having a proper data type to represent the concept along with the constraints it supports, I am trying to “abuse” existing types.

Take 2

So I went for a deep refactoring of my code to cleanly separate the concepts of an Amount and a Balance along with their proper constraints. This was also a good opportunity to start splitting my code in more manageables parts.


An Amount is basically a non-zero Natural integer so let’s embed that property in our type’s constructor:

data Amount : Type where
  MkAmount : (n : Nat) -> { auto notZero : LTE 1 n } -> Amount

We want our Amount to be straightforward to use so I’ve decided I would like to equip it with a Num implementation:

Num Amount where
  (MkAmount n {notZero=nz}) + (MkAmount k {notZero=nz'}) =
    MkAmount (n + k) { notZero = plusRightIsLte nz }

  (MkAmount n {notZero=nz}) * (MkAmount k {notZero=nz'}) =
    MkAmount (n * k) { notZero = lteOneMult nz nz' }

  fromInteger = fromIntegerAmount

Although the actual code for addition and multiplication is trivial and it is obvious that adding and multiplying non-zero integers yields non-zero integers, it was non-trivial (at least for me) to build the needed proofs. The addition case relies on a couple of properties from Nat defined in Idris’ prelude, namely that adding a number to the right of a LTE comparison preserves it, and that LTE is transitive:

plusRightIsLte : LTE j k -> LTE j (k + n)
plusRightIsLte x   {k} = lteTransitive x (lteAddRight k)

The multiplication case is similar except that the standard prelude does not provide a lteMultRight proof so I need to build it myself. This proofs is of course slightly different from the addition case because we need the factor k to be non-zero:

lteMultRight : (n : Nat) -> { auto nz : LTE 1 k } -> LTE n (mult n k)
lteMultRight Z               = LTEZero
lteMultRight n     {k = Z}   impossible
lteMultRight (S j) {k = S k} =
  rewrite plusCommutative k (j * S k)
  in LTESucc (plusRightIsLte $ lteMultRight j {k = S k})

This is done by induction on n while prooving the case k = 0 is indeed impossible, and here is a detailed step-by-step implementation:

Start with the signature for the proposition. Note that we can already use that signature in our implementation of Num Amount, as an additional hypothesis we’ll need to prove for our implementation to satisfy the typechecker:

lteMultRight : (n : Nat) -> { auto nz : LTE 1 k } -> LTE n (mult n k)

Hitting C-c C-s in Emacs and then case-splitting (with C-c C-c on n gives us the two base cases:

lteMultRight : (n : Nat) -> { auto nz : LTE 1 k } -> LTE n (mult n k)
lteMultRight Z = ?lteMultRight_rhs_1
lteMultRight (S j) = ?lteMultRight_rhs_2

The first case is directly solvable by hitting C-c C-a on the provided hole, while we need to bring in scope the (implicit) k and case-split on it for the second case:

lteMultRight Z = LTEZero
lteMultRight (S j) {k = Z} = ?lteMultRight_rhs_1
lteMultRight (S j) {k = (S k)} = ?lteMultRight_rhs_3

The second case is clearly impossible yet the typechecker fails to infer it automatically so we have to fill it by hand. This leaves us with the following hole to fill:

 `--                                     k : Nat
                                         j : Nat
                                        nz : LTE (fromInteger 1) (S k)
      Accounting.Amount.lteMultRight_rhs_3 : LTE (S j) (S (plus k (mult j (S k))))

This type looks like something we can recurse over inductively because we know that:

λΠ> :t LTESucc
LTESucc : LTE left right -> LTE (S left) (S right)

So peeling one layer

lteMultRight (S j) {k = (S k)} =
  LTESucc ?hole

and looking for the type of the hole we have

 `--                       k : Nat
                           j : Nat
                          nz : LTE (fromInteger 1) (S k)
      Accounting.Amount.hole : LTE j (plus k (mult j (S k)))

gives us some more information. We can call lteMultRight inductively on j (which is reducing n) and see what’s needed:

lteMultRight (S j) {k = (S k)} =
  LTESucc (?hole $ lteMultRight j {k = S k})

which gives us the hole

  k : Nat
  j : Nat
  nz : LTE 1 (S k)
Accounting.Amount.hole : LTE j (mult j (S k)) -> LTE j (plus k (mult j (S k)))

We now notice that the type of hole looks like the type of our plusRightIsLte:

plusRightIsLte : LTE j n         -> LTE j (n + k)
hole           : LTE j (j * S k) -> LTE j (k + (j * S k))

but with n = j * S k and the order of arguments in the addition on the right reversed. We can pull in the fact that addition is commutative:

lteMultRight (S j) {k = (S k)} =
  rewrite plusCommutative k (j * S k)
  in LTESucc (?hole $ lteMultRight j {k = S k})

and now our hole has the right type:

      Accounting.Amount.hole : LTE j (j * S k) -> LTE j ((j * S k)  + k)

which allows us to conclude our proof:

lteMultRight (S j) {k = (S k)} =
  rewrite plusCommutative k (j * S k)
  in LTESucc (plusRightIsLte $ lteMultRight j {k = S k})

The real process was much more hectic and I needed quite a lot of help from slack’s people!


We can now turn our attention to the Balance type and provide an implementation that takes into account the possibility for a balance to be null while preserving the chances to make our Balance type a proper monoid:

data Balance : Type where
  Zero : Balance
  Bal : (n : Amount) -> (d : Direction) -> Balance

The key insight here is to introduce a special constructor to denote 0 which will remove the need to do “magical” things when 2 Balance gets to compensate each other depending on the ordering of the operands. The definitions for the various algebraic structure our Balance is supposed to implement (semigroup, monoid and group) are simple once we introduce the compensate operation relating Amounts and Directions to yield a Balance:

compensate : (n : Amount) -> (d : Direction)
          -> (n' : Amount) -> (d' : Direction)
          -> { auto notEqDir : Not (d = d') }
          -> Balance
compensate (MkAmount n) d (MkAmount n') d' with (decEq n n')
    | (Yes prf) = Zero
    | (No contra) with (order {to=LTE} n n')
      | (Left l)  = Bal (MkAmount (n' - n)
                        { notZero = notEqualMinusGTOne n n' l contra }) d'
      | (Right r) = Bal (MkAmount (n - n')
                        { notZero = notEqualMinusGTOne n' n r (notEqReflexive contra) }) d

This definition is however made more complex than we’d hoped because: 1. When substracting 2 Natural numbers, we need to prove the first number is greater than or equal to the second one, which entails the need to call order here to case-split on the order of the 2 numbers with the relevant proof, 2. We also need to ensure the difference is still greater than or equal to 1 in order to build an Amount.

This is a tribute to the fact our Amount type is “complex”, eg. its constructor is not only a structure to aggregate some other datatypes but also carries with it some proofs which need to be maintained at all time. This will come bite us again later on…


Changing our 2 core types’ definition ripples through our system but without entailing any deep changes in our top-level types. The structure and the properties of our Entry, Transaction, Entries and BookOfAccounts types stay mostly the same except for the fact we don’t use Balance for defining an Entry but separate the Amount and the Direction. We only have to fix the compiler’s errors one at a time and end-up with pretty much the same code than we had before.

The introduction of Amount forces us however to make the numbers explicit in our sample entries. Although Amount is a Number and the compiler automatically introduces a conversion fromInteger when we use a literal in place of an Amount, writing

valid1 : balance [ MkEntry 100 Dr Bank,
                   MkEntry 100 Cr Capital ] = Zero
valid1 = Refl

yields the following typechecker error:

             Type mismatch between
                     compensate (fromIntegerAmount 100) Dr (fromIntegerAmount 100) Cr

because the typechecker cannot see “past” fromIntegerAmount. We need to either explicitly call MkAmount or turn on public export visibility on fromIntegerAmount to allow the typechecker to reduce expressions usinge the definition of the function.


The situation is definitely better than with our first model: We have a clear separation of two key concepts in our system and have strengthened our understanding of the domain and the relationship between the domain and the code by baking more properties.

Turns out it’s not all bright and shinny, which becomes apparent when we try (again) to prove the Group Balance properties. I won’t go into the tedious details in this already long post but this ended up being a long, interesting but painful journey in the realm of proofs writing. Interested reader is referred to the Proofs.idr file which contains the current (unfinished) state of the proofs of neutral element, inverse and associativity of Balance with <+> operation.

I gave up trying to prove associativity at some point, when it became clear the proof would be a long and tedious enumeration of all possible cases depending on the respective ordering of the Balances and the values of their direction. This is caused by the fact the definition of <+> involves a case-split on the directions and then uses compensate which itself involves 2 case-splitting: on the the equality of the values, and on their relative ordering. The Idris typechecker works by replacing each function call by its definition and trying to reduce the resulting expression to some ground types. This means that when one wants to provide a proof that (a <+> b) <+> c = a <+> (b <+> c), the applications of <+> are only reduced if the typechecker can follow the various branches in <+> definition to conclude. This can only happen if we provide the relevant proofs which basically means the structure of our proof necessarily follows from various paths leading to a conclusion in our function’s implementation.

Conclusion and Takeaways

I have not yet undertaken Take 3 but it’s pretty clear I am not there yet: The fact the proof for associativity of Balance is still daunting and painful is certainly a sign the involved types are more complex than they should be and need some more refactoring.

There are a couple of other options that would be worth exploring: * The embedding of the notZero proof does not seem like a good idea as it brings more proof obligations in scope at each use of an Amount. A better solution could be to have Amount use directly Nat but consider it to represent it’s successor, and then provide smart constructor and operations to manipulate those numbers while preserving this internal property, * There exists a ZZ module to represent relative integers. I could either get some inspiration from it or use it directly for Amounts and to hold a Balance, with some encoding to extract the direction (debit or credit) from the sign of the number, * Rather than trying to make Balance into a Monoid/Group, I could define a Vect n Entry to be a Monoid action on a Balance, eg. provide a specialised operation that applies an Entry on a Balance to give another Balance.

I am currently leaning towards exploring a combination of option 2 (use ZZ to contain an Entry’s amount and drop Amount) and option 3 (keep a separate Balance type but only use it in conjuction with Entry) as it seems to be both simpler than the current solution yet still close to the domain.

All in all, this experience has confirmed my initial intuition about Idris and the relevance of dependently-typed languages in providing “better” business domain models, something which I have been convinced of since I discovered Idris thanks to Edwin Brady’s book. Working through some involved (for me) proofs was an eye opener on both how difficult this process can be, and how much insight in one’s design it can provide. Some key takeaways I would like to share are:

This last point in particular is interesting as it provides a way to start a dialog between the domain and the code that is not one-way. We often develop software considering the “business domain” ex abstracto, as if the fact we were designing a software system for that domain was irrelevant. But this is not true, the fact it runs on software changes the domain itself hence it’s perfectly legitimate we can gather insights about the domain from the code implementing it. In the case of accounting this is pretty obvious as we are manipulating numbers and it’s a well-studied domain, but I think most if not all domains would strongly benefit from such dialog, transforming as hodge-podge of ad-hoc rules into something simpler, more regular and probably more efficient.

  1. It’s interesting to note the original sentence seems to imply capital and equity are one and same thing, which is not true.↩︎

  2. Short of cheating using something like believe_me of course that will subvert the typechecker.↩︎