Gaurav Garg
13 January 2009 at 11:49

Accounting Of ERP

ABC ltd. purchased an ERP package from Xyz in the year 2008. Entire package has 10 different modules like pay roll, accounting (for financial Accounting) stores, merchandising, job-work sales & stock accounting etc. Each module will take at least 6 to 8 months to customized & developed different reports. Vendor is customizing the different module one by one. On the completion of one module he takes up next module for implementation & customization. Vendor is customizing implementing different module with the help of his team of 4 persons & with the help of staff members of the ABC ltd.
Vendor’s billing pattern is as follows:-

i) One sales invoice he raises for complete ERP package and charge the Vat &/or CST accordingly and;
ii) Another monthly bill he raises for the implementation & customization of particular module.

My query is that:-

(1) Should the ABC ltd. capitalize the customization & implementation monthly bill
or treat it as the revenue expenditure.
(2) Should it capitalize the software module wise & claim the depreciation accordingly since the individual module can be put to use independently also.
(3) Should ABC ltd. capitalize the fist bill as “SOFTWARE WIP” till the entire package gets customized because the package will be fully utilized after the lapse o 3 to 4 years


poonam
13 January 2009 at 11:23

cash credit bank account

i want to know why we open cc A/C how its transaction is processed how can we apply whats its facility & whats its disadvantages


sriram
12 January 2009 at 20:09

MBA FROM IIT MADRAS

Hi

Whether IIT-MADRAS is offering MBA through distance edcuation .if so can anyone forward the details


survesh
12 January 2009 at 15:51

entryfor tally

a person is partner & propriter of a firm and uses funds ofr the both from both bank ac how should it be accouted in
1)partnership
eg.cash recd from propriter
2)propritor
eg. cash drawn for partnership firm


Nandesu
12 January 2009 at 14:00

PF, ESI related

HI,

My self is an Accounts Officer working in a MNC dealing with BPO Services. We are having the PF registration and have been deducting the PF according to their Basic salary and depositing the same in SBI and also depositing the monthly returns.

Regarding the same I wanted to know the following:
1. Lets say if aemployee's Break up is Basic Salary = 6500.00, HRA= 3250, Conveyance All = 800, Medical All = 1250 & Spl All = 1200.00 amountind a package of Rs. 13000.00. The his PF deduction will be 780.00 and what is the criteria for ESI deductions???
and
2. If the salary of the employee increases from 13000.00 to 20000.00 then his break up would be Basic salary = 10000.00, HRA=5000, Conveyance=800, Medical all=1250 & Spl All=2950.00. Now my Question is PF will be deducted 780.00 (as it is the maximum level) and the break up is what I have given. IS ir OK or something different?

and
3. what is the eligibility criteria of ESI deductions and what is the procedure and how it can be implemented.

Please give the answers andf I will be highly obliged.

Thanks & Regards
Someshwar Rao
09999009827


Gajendra R. Tiwari
12 January 2009 at 11:25

treatment of personal loan of directors

If the directors of the Private Limited Company at the time of starting the Company, taken personal loans for the purpose of starting the company. How should it be treated in Accounts of the company?


john
11 January 2009 at 09:16

wip

how can we value wip in construction industry.


A D - Loving Life
10 January 2009 at 20:16

Clear a doubt

What the best method to tally our balance oof bank entries fron tally software from bank statement ?


survesh
10 January 2009 at 18:04

vatreceivable

can tds be deducted on purchase of material and can we account on current assetside tds receivable


Dushyant
10 January 2009 at 18:02

TDS ( tax deductable at source)

for commission given to parties and the tds is deducted 10.3%, the income goes more than 10 lakhs than what will be the entries given in tally