Capital or Revenue Expenditure

if it is giving long term benefit then u should capatalise it and treated as capital expenditure.if not then treat like a revenue expenditure.

Dear Shamita,

if the usage of ERP package is having enduring benefit of more than one financial year

then it should be capitalised otherwise, it has to be charged to profit and loss account.

in my opinion, normally ERP packages can be used for more than one year so, it should be capitlised.

Yes what Machender wrote is correct, after you capitalise amortize it over the estimated useful life.