We purchased a major software package and are now in the process of customizing it for our own use. This is an extensive undertaking, entering detailed information and is taking several months. Are we allowed to capitalize the salaries of our employees that are customizing the software to meet our specific needs? We are not changing source code but are configuring items for our needs.
Capitalizing Software configuration costs
Answers
Yes, you can capitalize these costs. In simplest terms, you can capitalize all costs except
If you need the guidance, use SOP 98-1. You can find this on the FASB website.
Filed Under:
Accounting