SaaS
Write-off of Obsolete Internal Software
Removing the remaining book value of a software tool that is no longer being used by the company.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loss on Software Impairment | Expense (+) | 1,200.00 | - |
| Accumulated Amortization | Contra-Asset (-) | 800.00 | - |
| Capitalized Software (Cost) | Asset (-) | - | 2,000.00 |
💡 Accountant's Note
If a software asset has no future economic benefit (it’s obsolete), you must 'flush' the cost and accumulated amortization to zero and record the loss.
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