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WIP Posting for POC

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Posted on by David Shaw_UK

Hi all,

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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YUN ZHU 95,544 Super User 2025 Season 2 on at

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Hi, hope the following can give you some hints.

Understanding WIP methods in project management

https://learn.microsoft.com/en-us/dynamics365/business-central/projects-understanding-wip?wt.mc_id=DX-MVP-5004336

Walkthrough: Calculating work in process for a project

https://learn.microsoft.com/en-us/dynamics365/business-central/walkthrough-calculating-work-in-process-for-a-job?wt.mc_id=DX-MVP-5004336

Thanks.

ZHU

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RockwithNav 8,625 Super User 2025 Season 2 on at

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I understand you concern but exactly this is how Business central handles the GL transaction for a Project based on the Project Posting Group.

Once the Project is all completed it will cater Recognized Cost, Recognized Sales and the balancing account for these 2 with the exact profit but till then it's in WIP and you will run the Calculate WIP, system will cater based on the Budgeted Cost, Actual Cost, Billable Price and Invoiced Price we have on the Project Card.

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