Expected costs are the estimate that you make of the cost of, for example, purchasing an item before you actually receive the invoice for the item.
You can post expected cost to both inventory and to G/L. Whenever you post a document, such as an order or a journal, as received or shipped, a value entry line will be created with the expected cost. This expected cost will affect inventory value, but it will not be posted to G/L unless you have set the program up to do that.
In order to post expected cost to the general ledger, you must place a check mark in the Expected Cost Posting to G/L field in the Inventory Setup.
Enabling any of the following; expected cost posting to G/L, automatic cost posting, automatic cost adjustment means that the amount of entries the system creates and the level of detail produced every time you post something will increase. This may reduce the performance of your database considerably.
Expected costs are posted to interim accounts in the general ledger. If you want to post expected cost, you must set up interim accounts for the relevant posting groups in the General Posting Setup table.