Internal and external training costs and maintenance costs during the post-implementation operation stage shall be expensed as incurred.”įor ERP Projects, and in our case as a Microsoft Partner these are typically Microsoft Dynamics AX, Microsoft Dynamics NAV, or Microsoft Dynamics CRM projects, the service costs associated with an implementation are subject to the accounting rules above.Data conversion costs, except as noted in paragraph 350-40-25-3, shall be expensed as incurred.
#COST OF MICROSOFT DYNAMICS NAV SOFTWARE#
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Internal and external costs incurred during the preliminary project stage shall be expensed as they are incurred.US GAAP is very explicit in terms of accounting for software development costs (expensed versus capitalized).
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However, IFRS states that management may consider more recent “pronouncements of other standard-setting bodies that use a similar conceptual framework to develop accounting standards” and therefore it is possible to argue that best practice under IFRS might be to consider pertinent US GAAP. IFRS does not address software development costs directly and some IFRS interpreters actually take the position that costs associated with internally developed software should not be capitalized. Accounting for Software Development Costs (ERP Projects) Capitalization IFRS and US GAAP