Costing Method / Work in Process

[Former Member]

Dear All PS Experts,

I have a doubt which costing methods we are using regarding Work in Process Caluclation. Specillay we are working in ETO Process. I have tried from long back even though i didnot have full clearity regarding WIP for ETO. Is ther any body has any idea let we share the points. Thanqu

Regards

[Former Member]

Closed

[Former Member]

Hi,

If you want to calculate WIP then use 01 Method otherwise if you want to recognize revenues then use 03 method.

But the client should come from the client whether they want to see WIP or accrued revenues in FI.

Muzamil

[virendra_pal]

This is usually dictated by the Finanace team of the client

Ask them

If ETO payments are milestone based

I would then suggest use of cost based POC method to accrue revenue