I have SAAS client who has asked if the expenses they incur for client customization projects should be expensed or capitalized and amortized over the contract revenue life?
Expense or Capitalize SaaS customization expenses?
Answers
Jerry
Is your client implementing a SaaS package and paying for additional services to configure special reuqirements? If so, my current client (based in USA) is capitalizing the professional services to implement & configure the SaaS package and will write it off over the 36 months base subscription period of the SaaS service.
If your client contracted for a one year subscription, I think the write off is over 12 months.
Len
Filed Under:
Accounting