Used Software Licensing in CAPEX Mode

The Differences Between CAPEX and OPEX

CAPEX and OPEX are two concepts related to how the expenses made by a company are integrated into its financial and accounting statements. OPEX (Operating Expenses) corresponds to operational expenses. CAPEX (Capital Expenditure) corresponds to investment expenses. These two terms, CAPEX and OPEX, concern different categories of expenses depending on their use and management rules.

Difference Between Operating Expenses and Investment Expenses (OPEX/CAPEX)

Operating expenses (OPEX) or operating costs are the regular expenses of a company to ensure the functioning of services. These expenses include purchases of goods and raw materials, administrative supplies, rentals, subcontracting, social charges, maintenance, repairs, lease royalties... These expenses appear as charges in the company's income statement. As such, they do not impact its borrowing capacity and are deductible from the taxable income.

Contrary to operating expenses, investment expenses (CAPEX) relate to the acquisition of durable goods. This can be a tangible investment like real estate, production tools, IT equipment... It can also be an intangible investment like patents, a business goodwill, licenses. Finally, it can be a financial investment with the purchase of shares, bonds... These investment expenses ensure the development of the company in the short and medium term. From an accounting perspective, they enrich the company's asset value (company's assets).

Software License: OPEX or CAPEX?

The evolution of technology means the question is not settled. The development of the cloud and the provision of numerous SaaS applications to companies change the situation. These new technologies allow companies to allocate their expenses differently based on their technological choices and financial and accounting strategy. In this context, your software license is an investment expense (CAPEX) and can benefit from amortization rules if:

The investment amount is equal to or greater than €500.

The application is installed locally on your company's servers and client stations (on-premise mode).

The data is hosted on your infrastructure.

However, if the licenses are in SaaS mode (Software as a Service, cloud-based technology), it is an operating expense (OPEX) financed in rental mode.

The Used Software License is an Investment Expense

A professional software license acquired on the secondary market is an investment expense (CAPEX). European legislation legally regulates transactions conducted on the secondary software license market. It prohibits the resale of rental licenses and SaaS-type subscriptions which would then be an operating expense (OPEX). These licenses are not eligible because the usage rights are time-limited and tied to a subscription payment. SaaS mode licenses include an access right to the publisher's servers, which is non-transferable.

Sustainable Investment with Softcorner's Used Licenses

As a European leader in second-hand B2B software license sales, Softcorner allows you to implement an innovative, economical, and efficient software asset management. By joining the secondary market, you can acquire used software licenses compliant with legislation and complete (executables, license keys, documentation). They will also allow you to equip your employees at a lower cost (up to 80% discount depending on the licenses).

Softcorner also offers you the possibility to sell your unused software following a reduction in the number of users, application migrations, or technological changes. Uninstalling licenses allows you to free up resources and optimize your infrastructure. The secondary market provides you with greater flexibility and security, enabling you to adapt your software assets while controlling your investment expenses (CAPEX).