Ensure a consistent enterprise process for compliance with capitalization rules and standards, such as AICPA's SOP 98-1, "Accounting for the Costs of Computer Software Develooped or Obtained for Internal Use."

• Clearly segregate capital and expense charges
  Flexibly define capitalization rules by financial category, type of project, type of resource, and phase. Track capital and expense budgets separately.
• Flexibly depreciate expenses
  Utilize one or more depreciation rules. View amortized versus cash out the door cash flows.
• Perform IT software capitalization
  Flexibly administer information technology software capitalization based on specific rules and standards established by the organization. Integrate documentation and supplementary data with financial information and actual transactions
• Utilize integrated financial data
  Facilitate robust capitalization in FM by consolidating forecasts and actuals by cost category, project type, resource type, and phase from ERP, GL, Enterprise Project Management, and Timesheet systems.
• Ensure audit-ability
  FM provides full lockdown of history. Changes can only impact future periods, unless a formal adjustment is made.

To read our whitepaper about SOP 98-1 compliance in capitalization, "Capitalizing on SOP 98-1," click here.

To view a webcast about SOP 98-1, "Surviving the SOP 98-1 Audit," click here.

To speak to an EcoSys senior consultant about EcoSys Financial Manager, click here to contact EcoSys.