Reclassification of Revenue Recognized Value

Hi All,

Requirement from client user as below example:

Contract Value = 1000000 $

Period 1: Invoice to customer 150000 $

POC from Progress Analysis : 5% 

RA Method 07 based on progress analysis

Requirement is to see the accounting entries as below during settlement:

Revenue Recognition

Dr. WIP Revenue Recognized 50000 $ (POC*Contract Value)

        Cr. Billing Account (account is the invoice) 50000 $

Reclassify to Contract Asset/Liabilities

Dr. WIP Progressive Billing 100000 $ (Total Actual Billing - Rev recognized)

        Cr. Contract Liabilities Account 100000 $ 

Period 2

No actual billing in this month

So Total Actual Billing is same

Accounting entries required during settlement:

But POC = 20%

Revenue Recognized Total = 200000 $ (POC*Contract Value). Periodic = 150000 $

Revenue Recognition

Dr. WIP Revenue Recognized = 150000 $

        Cr. Billing Account (account is the invoice) 150000 $

Reclassify to Contract Asset/Liabilities

Dr. Contract Asset Account 50000 $ (Difference in Total Actual Revenue and Total Recognized Revenue)

        Cr. WIP Revenue Recognized 50000 $ 

This requirement has come from the IFRS 15 requirement and what I understood is only possible through RAR (Revenue Accounting principle) but is it possible in any other way?

I don't think this would be possible through any other enhancement to achieve and also not achievable from our current OKG8 configuration. Correct me if wrong.