As per my understanding, Goods in Transit should be shown in books of accounts when inventory has been dispatched to the customer, but the risk is on us. That is, we have not recognized it as sales. Please help me identify if I am correct on this understanding?
Now, should we show this transaction as Goods in transit every time such transaction happens, that is, we have dispatched the goods but these have not reached at buyer's place..or should we show Goods in Transit only during account period close?