Completed Project Method (COGS)

Select this method to calculate COGS on completion of a contract.

When to use this method

This method is used when you prefer to calculate COGS only on completion of the contract.

Calculation of COGS

COGS = COGS Percentage Completed * Estimate at Completion(EAC)
  Revenue recognized = Percentage Complete * Contract Amount

When calculating the COGS, Infor LN also considers the loss component. In which case:

COGS = Revenue + Loss; where in Loss = Contract Amount - EAC (estimate-at-completion)

Levels at which it can be recognized:

  • Project
  • Contract
  • Extension

Constraints

  • The project status must be closed.
  • The extension status must be closed.

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