Component Repair Orders – WIP Not Moving to COGS Due to CO Line Ownership (Always Company-Owned)

We are using MRO in IFS Apps 10, mainly for Component Repair Orders and Complex Assembly.

We are facing an issue where costs for Component Repair Orders (Customer-Owned parts) are correctly accumulated in WIP, but are not transferred to COGS when the related Customer Order is invoiced. As a result, our finance team has to manually move WIP to COGS.

Current Process

Our standard process is:

1. Create Component Repair Order (Customer-Owned part).

2. Book material and labor → costs are posted to WIP (working correctly).

3. Create Sales Line manually in Component Repair Order.

4. From CRO, use RMB option “Create Customer Order” and transfer sales lines.

5. System automatically creates Customer Order and Customer Order Line.

6. Invoice is posted and paid.

Observed Issue

When the Customer Order Line is created automatically, the ownership is always set to Company-Owned, even when the Component Repair Order is Customer-Owned.

We have verified:

• Demand Code = Component Repair

• Order Ref1 = Component Repair Order No

• WIP vouchers exist

• Invoice is posted and paid

• Revenue is posted correctly

We also checked the API / database logic used for CRO → CO creation, and it confirms that the Customer Order Line is created as Company-Owned by default.

Can this be the reason, IFS treats the repair as Company-Owned and does not move WIP to COGS.?

Impact

Due to this behavior:

• WIP remains open

• COGS is not recognized automatically

• Finance team performs manual journals to move WIP → COGS

• This breaks automation and audit traceability

My Understanding of the WIP → COGS Automation Process

After creating the Component Repair Order, we manually create the Sales Line and then generate the Customer Order from the repair order. When the Customer Order is invoiced, I understand that IFS automatically starts the cost recognition process.

My understanding of the expected flow is:

1. Customer Order Invoice is posted.

2. The system triggers the cost recognition logic.

3. Related Customer Order Lines are evaluated.

4. Ownership, line type, and repair/work order references are validated.

5. Related WIP costs are identified.

6. The relevant posting type  is selected.

7. The posting proposal is applied.

8. A voucher is created to move WIP to COGS.

9. The General Ledger is updated.

At the moment, this is my assumption, as I have not found clear documentation that explains this process end-to-end.

If I clearly understand when and how this process is triggered, I will be able to debug the issue more effectively (for example, by checking whether the problem is related to posting control, posting proposal, ownership validation, or another step in the flow).

I would therefore appreciate confirmation of this understanding and any official checklist or documentation that describes the exact validation and automation steps for WIP to COGS in Component Repair Orders.

Questions

We would appreciate guidance on the following:

1. Is this standard behavior in IFS MRO when creating Customer Orders from Component Repair Orders?

2. Is there a standard way to inherit Customer-Owned ownership from CRO to CO line?

3. Are there any parameters, events, or APIs that must be enabled to support automatic cost recognition(ex-posting controls)?

4. If ownership cannot be changed on the CO line, what is the recommended approach to enable automatic WIP → COGS posting?

As a developer, I am trying to identify the correct configuration or extension point to fix this permanently instead of relying on manual accounting.

Any best practice or documentation reference would be very helpful. And please drop me any knowledge here you have then I can communicate it to finance and correct if we follow a wring process. 

Thanks in advance.

WIP - Work in Progress
COGS - Cost Of Goods Sold