Purchase of ERP software

Hi, Appreciate if someone could help me on this.

 

Lets say a client has ordered a specialized software costing $1,500. As of the year end, software has not been delivered yet and client has made an advance payment of $1,000.


The only entry made in regard of this transaction is recording of advance payment.

 

My question is whether we need to accrue the remaining amount of $500 in the books at the year end?. 

 

Thank you.

Replies (3)
Quick Summary
This discussion addresses the accounting treatment for a specialised ERP software purchase where an advance payment has been made, but the software is yet to be delivered by year-end. The core question is whether to accrue the remaining balance. The consensus is that the entire expense should be accounted for, with the software debited. Upon successful implementation, it can then be capitalised.

Without suplies how can You account...

Ah my mistake. I understand. Thank you.

You have to account for the entire expenses and debit
software dr.
on successful implementation you can capitalize...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details