In-transit items
Definition
Items recorded by one company that the other has not yet recorded at the period end, such as an invoice, a payment or goods.
Why does it matter in a group?
Items in transit are a timing cause of intercompany differences. One company has booked the invoice, the payment or the goods, and the other will book them after the period end. At group level the item is recorded as a consolidation adjustment, so both sides appear before they are eliminated. The companies’ own books are not changed. Carry the item on the open list of the intercompany reconciliationIntercompany reconciliationComparing what each group company records with its counterparties and explaining every difference.Open the glossary entry until the second company books it. Typical items are an invoice raised on the last day of the month, a payment sent but not yet received, and goods shipped but not yet booked into stock.
A small example
Zenvara raised invoice ZI-1182 for AED 9,000 on 29 September 2026. Palmridge booked it on 2 October. At the group rate of 0.2040, the item in transit is GBP 1,836.