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  • Create the Sales Order and set it up for Progress Billing
  • Open the Work Order when ready to manufacture
  • Cross reference Work Order to Sales Order and Line Number
  • Define the Percent Of Completion Header linking SO and WO
  • You may use Estimated Cost or Standard Cost as basis for calculation
  • Post Labor and Move Quantity on the Work Order
  • Calculate Percent of Completion based on Estimated Hours and Move Quantity
  • System will calculate accured revenue and COGS to date
  • System will create a Progress Billing for the amount since last billing
  • Complete the production on the Work Order
  • Ship the Sales Order
  • Invoice the Sales Order and previous accruals will be reversed

For companies that utilize Progress Billing based on work done to date, Percent of Completion is crucial to handle accrual of COGS and Recognition of Revenue.