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Expense or Capitalize SaaS customization expenses?

I have  SAAS client who has asked if the expenses they incur for client customization projects should be expensed or capitalized and amortized over the contract revenue life?


Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Is your client implementing a SaaS package and paying for additional services to configure special reuqirements? If so, my current client (based in USA) is capitalizing the professional services to implement & configure the SaaS package and will write it off over the 36 months base subscription period of the SaaS service.
If your client contracted for a one year subscription, I think the write off is over 12 months.


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