How to Record SCRM Software Implementation
Records the capitalization of Supply Chain Risk Management (SCRM) software used to monitor tier-n suppliers for geopolitical and financial risks.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Capitalized Internal Use Software | Debit | 150,000.00 | - |
| Accounts Payable | Credit | - | 150,000.00 |
💡 Accountant's Note
Software used to comply with Section 889 and other supply chain security mandates is capitalized under ASC 350-40 and amortized over its useful life, with amortization usually being an allowable G&A cost.
Practitioner & Systems Framework
💻 ERP Architecture
Categorize as an intangible asset; ensure the software license is not an annual subscription (which would be expensed).
⚠️ Audit Flags
Inclusion of amortization in the indirect rate submission (ICE).
📄 Required Documentation
Software purchase agreement and documentation of the implementation phase completion (Go-Live).
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Discussion & Community Questions
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