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COGS has to book In Finance based on the milestone percentage

Dear Experts,

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?



Former Member

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