UK software as a fixed asset

[Jay2]

hello,
we have been advised that we can capitalise some specific software that we will have full control/benefit of , my query is, we currently have a couple of fix asset codes , computer hardware being depreciated straight line over 3 years , can i just include it on here and show it in the asset register 0 depreciating it over 3 years ?
thanks for help , not had this scenario before

 

[kirby]

Better if you add a new asset account for "computer software", similar to the computer hardware account and use that.

 

[Jay2]

Better if you add a new asset account for "computer software", similar to the computer hardware account and use that.

Thank you for taking time reply ,
I have never had to capitalise software before , it has always been treated as an expense . Will I still just depreciate it as normal and will it be included in the fix asset register ? Hopefully this is just a one off

 

[kirby]

Yes to both questions.

 

[Jay2]

Thank you , again