I have a question regarding Percentage of Completion WIP posting I'm hoping you can help me with. Let's say we have a project with a total Fixed price of $10000, we invoice half upfront before work starts, system posts a liability to a balance sheet account 14220 due to worked owed. We then deliver half the work (cost actuals), we now can recognize 50% revenue ($5000). Question: would we not expect the $5000 originally posted to 14220 to be completely reversed at this stage as we have now earned that revenue. Business Central creates a line (2nd line below) to reverse due to type "Recognized Sales", but then strangely it posts another entry type "applied sales" restoring the initial liability of $5000. Note: only once the project is completed is it fully cleared from that account, however I would expect that account to reflect the true liability at a point in time especially for longer projects.
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