1. According to the title, the software was still in the development stage from January to March. The balance was paid in April and reached operational status.

Every time you pay, There are invoices, but the intangible assets are not available in the first three months.

Then the entries for the first three months are basically the same

When paying:

Debit: advance payment Account

Credit: bank deposit

When the invoice is actually received

Debit: R&D expenditure

Credit: prepaid account

The fourth month

Debit: prepaid account

Credit: bank deposit

When the invoice is actually received

Debit: R&D expenditures

Credit: prepaid accounts

At the same time, because the usable state is reached, the R&D expenditures are converted into intangible assets

Debit : Intangible assets

Credit: R&D expenditures

2. The amortization life of intangible assets must first comply with the accounting standards. As for the tax law, the actual tax payment It will be adjusted in accordance with the tax law.

The determination of the service life shall be based on the contract if it is stipulated in the contract. If there is no stipulation in the contract, it shall be in accordance with the relevant legal provisions. If the relevant laws and the contract both stipulate the service life, whichever is lower.

In addition, the amortization of intangible assets will begin from the time of acquisition in the month. Because it reaches the intended usable state in April, amortization will begin from April.

Therefore , starting from April, you can amortize it over 10 years according to the straight-line method. Of course, if your contract stipulates the use time of the software, then the service life can be determined according to the contract provisions.