When completing your Month-End Reconciliation, you may see that items will need to be marked as in transit. These are invoices or credit notes that have been issued but are not yet fully processed or recognised in your accounting system at the time of reconciliation. This usually happens due to timing differences between when the invoice or credit note is created and when it is recorded or matched with delivery/payment.
An Invoice refers to:
- An invoice you’ve issued to a customer for goods or services delivered.
A Credit Note refers to:
A credit note you’ve issued to a customer (e.g., for a return, discount, or correction).
Why they matter:
If the above aren’t recorded, your accounts receivable will be understated, which may result in a variance at the end of the process