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we have a large volume of prepaid software licensing and hardware maintenance. It's really OpEx on the income statement, but sort of acts like CapEx. I want to include these prepaid payments in my vendor reporting. But it's not true CapEx. How do others capture this spend? 

Our Finance team process that in the ERP system upfront, so we do get as D&A whatever share is required, @Kyle Sellner.

I take it this is not your case, so I would create a transform with the items that fall under this category, and generate the D&A apportioned across the amortization period. Then, I'd replace the line items with the corresponding D&A amount for the month.

I would certainly consult with Finance, just in case.

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Regards, Guillermo

Original Message:
Sent: 10-14-2024 11:10
From: Kyle Sellner
Subject: prepaid sw licensing, opex vs capex

we have a large volume of prepaid software licensing and hardware maintenance. It's really OpEx on the income statement, but sort of acts like CapEx. I want to include these prepaid payments in my vendor reporting. But it's not true CapEx. How do others capture this spend? 

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Our Finance team process that in the ERP system upfront, so we do get as D&A whatever share is required, @Kyle Sellner.

I take it this is not your case, so I would create a transform with the items that fall under this category, and generate the D&A apportioned across the amortization period. Then, I'd replace the line items with the corresponding D&A amount for the month.

I would certainly consult with Finance, just in case.

------------------------------
Regards, Guillermo

Original Message:
Sent: 10-14-2024 11:10
From: Kyle Sellner
Subject: prepaid sw licensing, opex vs capex

we have a large volume of prepaid software licensing and hardware maintenance. It's really OpEx on the income statement, but sort of acts like CapEx. I want to include these prepaid payments in my vendor reporting. But it's not true CapEx. How do others capture this spend?