RE: Re: SIP is "just another Six Sigma measure"?

I'm writing a tool called Java Spider, which helps people understand
complicated Java programs. I'm writing it for my own long-term use
because I need to quickly understand out-of-control programs as part of
my business. Investment in Spider ought to be accounted for as a capital
investment resulting in a liability. However, I also want to generate
revenue with it. In the Open Source world it is considered unethical to
generate revenue by charging for the software, so I'm offering
sponsorships, a la Formula I racing. Looked at as a revenue generator,
my understanding is that I should account for investment in Spider as an
expense resulting in an asset.
 
I'm probably completely confused. I spend an hour on Spider. What
transactions go into which accounts?
 
Kent

-----Original Message-----
From:
sentto-8007113-369-1043165047-kent=threeriversinstitute.org@returns.grou
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[mailto:sentto-8007113-369-1043165047-kent=threeriversinstitute.org@retu
rns.groups.yahoo.com] On Behalf Of Dan Palanza
Sent: Tuesday, January 21, 2003 8:03 AM
To: [email protected]
Cc: [email protected]; Carol Findell; [email protected]
Subject: Re: [SIP] Re: SIP is "just another Six Sigma measure"?


There is a different type of software product. Suppose that a double
entry bookkeeping framework could serve all of many just in time
assemble lines. That type of product is set into motion as a function of
policy more typical of building a factory, or of buying machinery. In
accounting jargon, where the unique application is a function of current
costs, the universal application is a function long term capital
investment. My initial argument to Kent is that software ought to be
more often in the later category.