When migrating Project data from a legacy system to D365 F&O. On cutoff date, there are cost transactions of fixed price projects have not been recognized and still remain in WIP balance. We use beginning balance journal to transfer these WIP cost transactions from legacy system to F&O without impact to ledger balance. However, when running revenue recognition with “Update Beginning Balance” option enabled, post the revenue recognition, project cost is posted to P&L as expected, but accrued revenue stays in WIP. 

Both cost and revenue should be posted to GL/Ledger when recognized, converting from WIP to P&L. Currently, only cost is recognized and posted to GL, while revenue is recognized only in the project module without impacting GL due to the beginning balances.