Job Cost in the income statement range , Profit recognition and WIP offset

 have a quick question regarding Job Cost and Profit recognition

If I set the Job Cost in the Income Statement Range rather than BS Range

and lets say that the upd todate Cost of a certain job is 68,000

and I entered a manual invoice withamount 127,000 (Credit Project Revenu / Debit Project Receivables)

now once the profit recognition is run the resulted J/E is

CR JAAE010001.511999.99999999 (PROFIT RECOG) 31,166.67

DR 1.413000.99999999 (EXCESS BILLING) 31,166.67

Now I am Confused

should the system create an offset J/E to WIP if the job cost is setup in the income statement range?!

AAI's are

Now should there be an offset JE to WIP effect into the BS accounts or this is correct?