SaaS
Open Source / Third-Party License Capitalization
Capitalizing a perpetual third-party software license used as a component in the SaaS product.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Intangible Assets — Software Licenses | Asset (+) | 15,000.00 | - |
| Cash / Bank | Asset (-) | - | 15,000.00 |
💡 Accountant's Note
Perpetual licenses for technology embedded in the product are capitalized as intangible assets. Annual/subscription licenses are expensed monthly as a Cost of Revenue.
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