Recognize inventory in transit from an external supplier in GL

Question

Hi All,

I have come across a scenario where, company is paying supplier in advance and obtain the ownership of inventory at the point of dispatch goods from the supplier’s site.

As a result of that, I need to recognize goods at the point of dispatch supplier goods in my books as inventory in transit. Once the goods arrive to our site, it should be able to recognize in inventory account as usual.

Is there any recommended process, workaround implemented for other customers? Any experience you would like to share.

Thomas Peterson · Answer

A common process I’ve seen is to receive the parts (based on shipment) into an inventory location such as container in transit. This would have availability controls to block access / set these as non-nettable. Posting controls could be defined to set the value as in transit, then when moved out of that location to would flow to the perpetual inventory account.

Ive seen a number of clients use the same concept.

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