10-25-2009, 11:15 PM
hi everybuddy,
quoting a real example of a listed company, it may make the things clear....
Oracle 11i was implemented in the organization....in current year they upgrade their ERP from Oracle 11i to Oracle 12R....for this purpose they paid licence fee to Oracle Corporation....this licence fee along with all the "data migration costs" were capitalized....data migration costs includes professional services rendered by external ERP consultants and the organization's own IT staff salaries related to the whole activity....This is the case where the ERP's version is upgraded....
Further if a new module is added to the same software, costs relating to that should also be capitalized....for example, if the software has 3 modules i.e. Fixed Assets Module, Accounts Payable Module, Accounts Receivable Module and the Cash Module....Now if the organization wants to implement Inventory Module (not previously included in the package), costs relating to it will also be capitalized....
plz tell me whether it solves your query or not....
Regards.
quoting a real example of a listed company, it may make the things clear....
Oracle 11i was implemented in the organization....in current year they upgrade their ERP from Oracle 11i to Oracle 12R....for this purpose they paid licence fee to Oracle Corporation....this licence fee along with all the "data migration costs" were capitalized....data migration costs includes professional services rendered by external ERP consultants and the organization's own IT staff salaries related to the whole activity....This is the case where the ERP's version is upgraded....
Further if a new module is added to the same software, costs relating to that should also be capitalized....for example, if the software has 3 modules i.e. Fixed Assets Module, Accounts Payable Module, Accounts Receivable Module and the Cash Module....Now if the organization wants to implement Inventory Module (not previously included in the package), costs relating to it will also be capitalized....
plz tell me whether it solves your query or not....
Regards.
