What is the function Expected Cost Posting in the Inventory Setup ? Dynamics 365 Business Central (N

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The Inventory module setup window is EXTREMELY important the setup here can impact your system’s performance significantly.

When you receive a Purchase Order, the system will prompt you whether or not you are receiving the purchase order, processing an invoice for the goods received or dop both at the same time. If your organization always received the Goods with the invoice and you always process both at the same time, this setting will have no impact on your system.

If you turn this feature ON, you can never turn it OFF again without causing problems in your items cost valuation database. This is why Microsoft has it turned OFF by default.

If it is turned on, the following will occur, with regards to General Ledger:

1. Create a Purchase Order and release it – No Impact on the GL

2. Receive a PO Line item – Inventory Asset Account – Debit, Purchase Order Liability Account – Credit

3. Receive the Invoice for the Items received – PO Liability Account – Debit, Accounts Payable – Credit

If this switch is turned ON, the system will perform all three steps. If this switch is turned OFF, the system will skip Step 2 and only performs step 1 and 3. Ideally, proper selection should be chosen when you start using the system. If you have been using the system with the switch OFF, you