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, 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:

Constraints