Revenue to be recognized based on Raw Material consumption

Summary:

We are have requirement from the business that the Revenue to be recognized based on Raw Material consumption during manufacturing process.

Here we are using the project driven supply chain feature and project related purchasing of raw material is done at the initial stage of the project and as per the ERP (Fusion) system as soon the Raw material is receipted the cost is accumulated on the project.

In the current project the revenue is recognized based on the percent spent method hence this causes huge unbilled receivable amount hence business is looking out to recognized the revenue once any Raw material is issued against the work order.