Problem solved

README.md

@@ -1,20 +1,18 @@
 # annotation-processor-sample
 Gradle 5 issue sample
 
-## To see it working with 4.10.2
-* Switch gradle version to 4.10.2 in gradle/wrapper/gradle-wrapper.properties
+## To see it working with project versions 4.10.2 and 5.0
+* Set gradle version to {4.10.2, 5.0} in gradle/wrapper/gradle-wrapper.properties
+* In client/build.gradle pick
+    * Comment ``annotationProcessor "com.company:model-processor:${project.version}"``
+    * Uncomment ``annotationProcessor project(':model-processor')``
 * Run in root directory ```./gradlew clean && ./gradlew build```
 * You should see 
     * client/build/generated/source/apt/main/com/company/client/ImmutableClient.java
     * client/build/generated/source/apt/main/com/company/client/ImmutableObjectModule.java
 
-## To see it non-working with 5.0
-* Switch gradle version to 5.0 in gradle/wrapper/gradle-wrapper.properties
-* Run in root directory ```./gradlew clean && ./gradlew build```
-* You should see only 
-    * client/build/generated/source/apt/main/com/company/client/ImmutableClient.java
-
-## To see it non-working with both versions 4.10.2 and 5.0
+## To see it working with local artifact versions 4.10.2 and 5.0
+* Make it work with project first as above
 * Set gradle version to {4.10.2, 5.0} in gradle/wrapper/gradle-wrapper.properties
 * Run in root directory ``gw publishToMavenLocal`` to publish artifacts to local repo
 * In client/build.gradle
@@ -23,4 +21,5 @@ Gradle 5 issue sample
 * Run in root directory ```./gradlew clean && ./gradlew build```
 * You should see only 
     * client/build/generated/source/apt/main/com/company/client/ImmutableClient.java
+    * client/build/generated/source/apt/main/com/company/client/ImmutableObjectModule.java
 

client/build.gradle

@@ -1,7 +1,6 @@
 dependencies {
-    annotationProcessor project(':model-processor')
-// BELOW NEVER WORKS
-//    annotationProcessor "com.company:model-processor:${project.version}"
+//    annotationProcessor project(':model-processor')
+    annotationProcessor "com.company:model-processor:${project.version}"
 
     compileOnly project(':model')
     compileOnly group: 'org.immutables', name: 'value', version: '2.5.6'

gradle/wrapper/gradle-wrapper.properties

@@ -1,5 +1,5 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-4.10.2-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-5.0-bin.zip
 zipStoreBase=GRADLE_USER_HOME
 zipStorePath=wrapper/dists

model-processor/build.gradle

@@ -1,12 +1,13 @@
 dependencies {
+    annotationProcessor 'com.google.auto.service:auto-service:1.0-rc4'
     compile project(':model')
     compile(group: 'org.reflections', name: 'reflections', version: '0.9.11') {
         exclude(module: 'annotations')
         exclude(module: 'javassist')
     }
 
     compile group: 'org.immutables', name: 'value', version: '2.5.6'
-    compile 'com.google.auto.service:auto-service:1.0-rc4'
+    compileOnly 'com.google.auto.service:auto-service:1.0-rc4'
     compile group: 'com.squareup', name: 'javapoet', version: '1.9.0'
     compile 'org.apache.logging.log4j:log4j-slf4j-impl:2.9.1'
 }