COGS has to book In Finance based on the milestone percentage
My Client has a business scenario
Building renovation Business- they are considering this as a Project with multiple milestones.
Project based procurement will happens and will be delivered at site
Project value is USD 1000
Raw materials will be delivered at customer site worth of USD 400
First Milestone is 20% of Project - USD 200
Second Milestone is 30% of the Project USD 300
Third Milestone is 40% of the Project USD 400
Final settlement is 10 % of the project USD 100
Now raw materials expenditure is USD 400
but First Milestone going to receive USD 200
When the fist quarter if i analyse the project status - it shows loss
so client wants to book the COGS in finance based on the milestone 20% of billing
Is it possible , or please guide me how to solve this issue?