The following is a list of examples illustrating when computer software is for internal-use:
a. A manufacturing entity purchases robots and customizes the software that the robots use to function. The robots are used in a manufacturing process that results in finished goods.
b. An entity develops software that helps it improve its cash management, which may allow the entity to earn more revenue.
c. An entity purchases or develops software to process payroll, accounts payable, and accounts receivable.
d. An entity purchases software related to the installation of an online system used to keep membership data.
e. A travel agency purchases a software system to price vacation packages and obtain airfares.
f. A bank develops software that allows a customer to withdraw cash, inquire about balances, make loan payments, and execute wire transfers.
g. A mortgage loan servicing entity develops or purchases computer software to enhance the speed of services provided to customers.
h. A telecommunications entity develops software to run its switches that are necessary for various telephone services such as voice mail and call forwarding.
i. An entity is in the process of developing an accounts receivable system. The software specifications meet the entity's internal needs and the entity did not have a marketing plan before or during the development of the software. In addition, the entity has not sold any of its internal-use software in the past. Two years after completion of the project, the entity decided to market the product to recoup some or all of its costs.
j. A broker-dealer entity develops a software database and charges for financial information distributed through the database.
k. An entity develops software to be used to create components of music videos (for example, the software used to blend and change the faces of models in music videos). The entity then sells the final music videos, which do not contain the software, to another entity.
l. An entity purchases software to computerize a manual catalog and then sells the manual catalog to the public.
m. A law firm develops an intranet research tool that allows firm members to locate and search the firm’s databases for information relevant to their cases. The system provides users with the ability to print cases, search for related topics, and annotate their personal copies of the database.