A 'Record of Database Capacity' is defined as an Organisation or Person that has at least one Address, plus any other 'Entities'‚ such as Projects. It does not matter how much data your store for each Entity. They can have as many addresses, diary notes or anything else recorded against them. They still count as one 'Record'.

By not counting Organisations that do not have Addresses, it means that separate Departments within an Organisation that do not have their own Address, do not count towards your licence total.  If the Department needs its own Direct Dial Phone number then it would count.

Similarly by not counting People that do not have Addresses it means that Staff who simply work for an Organisation but don't have their home contact details recorded, will not count towards your licence total either. It also means that anyone you mark as 'Deceased'‚ will not count either‚ as a deceased Person has no Address.