Goods in Transit

Goods in transit sit between shipment and receipt — they have left the supplier but are not yet booked into the buyer's location. Ownership during this window depends on the agreed Incoterms, which determine whether the buyer or supplier bears the risk and cost while the goods move. Tracking in-transit items is important for both inventory planning and accurate accounting.

From a procurement view, visibility of goods in transit helps teams anticipate arrivals, plan receiving and manage stock so they neither run short nor over-order. From a finance view, in-transit goods may need to be recognised on the balance sheet depending on the terms, and they affect the timing of matching and payment once the goods received note is raised.