# Software Capitalisation Report

### 1. What is Software Capitalisation?

Software capitalisation classifies eligible software development work as **capitalised** or **non-capitalised**.

* **Capitalised work** relates to building new software assets or enhancing existing platforms.
* **Non-capitalised work** covers operational, maintenance, or bug-fix activity.

Correct classification has a significant impact on financial reporting, compliance (GAAP/IFRS), and investment tracking.

***

### 2. How Typo Performs Capitalisation

#### **2.1 Data Sources**

* **Issue Tracker** (e.g., Jira, Linear): Issues, types, status history, timestamps.
* **Version Control** (Git): Commits/PRs mapped to issues for contributor-level accuracy.
* **Custom Fields**: Fields or labels for issues in R\&D, Infra, Tech debt, etc.

#### **2.2 Classification Rules**

* **Issue Type Mapping**: Define which issue types are typically capitalised vs non-capitalised.
* **Category Assignment**: Assign work to categories such as “Product Development,” “Maintenance,” and “R\&D.”

#### **2.3 Contributor Attribution**

For each issue, Typo:

* Identifies contributors and work logged.
* Applies capitalisation % to show the share of capitalised vs non-capitalised work.
* Tracks history when status or assignee changes.

***

### 3. Month-on-Month Capitalisation Summary

Typo generates a monthly summary showing:

* **Overall % Capitalised** for the period.
* **% Non-Capitalised** for the period.
* **Trend Chart** of capitalisation % month over month.
* **Breakdown by Category** (e.g., New Feature Development, Enhancements, Maintenance).
* **Breakdown by Custom Field** (e.g., R\&D, Compliance).

<figure><img src="/files/alxHc7ASgCWSUyWP84uh" alt=""><figcaption></figcaption></figure>

***

### 4. Capitalisation View in Typo

Typo’s capitalisation table provides granular, traceable data for finance teams, with filters for **time range**, **developer**, and **issue type**.

#### **4.1 Columns Displayed**

<table><thead><tr><th width="225.07421875">Column</th><th>Description</th></tr></thead><tbody><tr><td><strong>Key</strong></td><td>Issue key (e.g., PROJ-123)</td></tr><tr><td><strong>Type</strong></td><td>Issue type (Story, Bug, Task, Sub-task, Feature Request)</td></tr><tr><td><strong>Summary Name</strong></td><td>Issue title</td></tr><tr><td><strong>Epic Key</strong></td><td>Linked epic’s key</td></tr><tr><td><strong>Epic Summary</strong></td><td>Epic’s title</td></tr><tr><td><strong>Associated Assignee</strong></td><td>Current assignee; row updates when changed</td></tr><tr><td><strong>Custom Field</strong></td><td>Work category</td></tr><tr><td><strong>Status</strong></td><td>Current workflow status; row updates when changed</td></tr><tr><td><strong>Issue Update Time</strong></td><td>Timestamp of latest assignee/status change</td></tr><tr><td><strong>Contributor</strong></td><td>Developer name</td></tr><tr><td><strong>Start Date of Ticket</strong></td><td>First moved to “In Progress”</td></tr><tr><td><strong>Resolved Date of Ticket</strong></td><td>First moved to “Done”</td></tr><tr><td><strong>Release Fix Version</strong></td><td>Jira fix version(s)</td></tr><tr><td><strong>Story Points</strong></td><td>Assigned story points</td></tr><tr><td><strong>Capitalization %</strong></td><td>Capitalized share of work for the issue</td></tr><tr><td><strong>Category</strong></td><td>Category tag (Capitalised/Non Capitalised)</td></tr></tbody></table>

***

### 5. Linking to Investment Distribution

Typo’s capitalisation report can be directly linked to **Investment Distribution** reporting:

* Finance teams can take the **capitalisation %** and **non-capitalisation %** from Typo
* Typo uses finance team inputs on developer CTC, work hours per day, and total workdays to calculate cost per hour, then applies the capitalisation and non-capitalisation percentages to total hours worked to derive respective costs.
* This enables direct mapping of engineering effort into CapEx/OpEx figures in accounting systems.
* The linkage provides a **full investment view** by category, contributor, and time frame.

<figure><img src="/files/2VFUi3RT2vPl8YDsJ8Xw" alt=""><figcaption></figcaption></figure>

***

### 6. Why Finance Teams Use Typo for Capitalisation

* **Granular % Data**: Breaks down capitalised vs non-capitalised work at the issue level.
* **Customizable Rules**: Aligns with your capitalisation policies.
* **Investment Linking**: Capitalisation % can directly feed into financial cost models.
* **Audit-Ready**: Historical changes in status, assignee, and percentage are retained.

{% hint style="info" %}
To enable this report for your account, please reachout to support or <hello@typoapp.io>
{% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://typo.gitbook.io/typo-help-docs/platform/reports/software-capitalisation-report.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.