What are the job cost recognition options?

The job cost recognition options establish the default costing behavior when creating work orders for average cost or job items. These defaults can be overridden at the item site level or at the level of specific work orders you create. If the to date option is specified, all of the WIP costs accumulated to date will be charged to the cost of sales when the item is shipped. If the proportional option is specified, a value up to the proportional value of the total quantity shipped will be charged to the cost of sales when the item is shipped. For an example of the proportional method, assume 3 items are to be shipped on a job work order and all the material has been issued—and if only 1 of the 3 is shipped—then 1/3 of the value charged to WIP at that point will be charged to the cost of sales.