If you use this method, the total WIP costs are used as the inception-to-date COGS if the revenue is greater than zero. If the revenue on the project is zero, no COGS journal entry is created.

Costpoint sums the TOT_REV_TGT/ACT_AMT (depending on whether target or actual is selected in the screen) in the PROJ_SUM table and the TOT_REV_AMT from PSR_PY_SUM and multiplies these amounts by the Percent of Revenue entered on the Manage Cost of Goods Sold screen.  This amount becomes the total WIP costs, and it is used as the COGS entry.  

The balance of the general ledger account designated with the WIP TRANS OUT Function Code for that project's account group is summarized for the fiscal year and period of calculation. Costpoint subtracts this amount, which is the COGS already posted for the year, from the total WIP costs calculated previously to arrive at the amount to post. The owning organization of the project is used for calculation and posting purposes.