When the billed sales for a project exceed the Percent complete of sales, the WIP calculation should post the difference to a deferred revenue account (liability account).
When the billed sales for a project are less than the Percent complete of sales, the WIP calculation should post the difference to an asset account.
Need the ability to setup a Deferred Revenue and an Accrued Revenue for posting of WIP. The system should evaluate the over/under of billing vs WIP and post accordingly.
This could have ASC 606 implications
Issue 4: Netting The Sum Of Contract Assets And Contract Liabilities
ASC 606 does not explicitly state whether an entity should present its total contract assets and total contract liabilities as separate line items or on a net basis. Considering the principles in ASC 210-20 and the guidance stating that an entity must disclose the balances of each balance sheet item separately, an entity should not combine total contract assets with total contract liabilities to present a net position; rather, both balances should be presented separately.