Inventory in transit is goods or materials moving between locations rather than being at the recipient’s ordinary warehouse. Physical movement does not automatically determine whose asset the goods are: the contract terms and applicable recognition rules are needed. If a shipment leaves the supplier’s warehouse on the 28th and reaches the buyer on the 3rd of the following month, the date for including it in the reported balance cannot be selected solely from the arrival note. Check the transfer of control, documents, units and the absence of double counting. This is a location classification, not a separate cost method.
How to avoid an error
Separate goods that have been dispatched, are in transit and have already been received. If one shipment is counted both in the warehouse balance and on a separate deliveries line, resource availability will be overstated. A cash plan also needs payment dates: a load being on the road does not show when payment is due.
For more on the connection between cost and write-downs: [educational analysis](/guides/inventory-cost-nrv/).
Sources and limits of review
Basis: **gl-mit-inventory**, **gl-mit-mrp**. The English term describes a management function, not a separate mandatory IFRS line item. The example is editorial; the terms of a particular contract and accounting treatment must be checked separately.
General educational models; IFRS is mentioned only to the stated extent; not a statement of current Russian rules.
Source references and link retained: gl-mit-inventory, gl-mit-mrp, [educational analysis](/guides/inventory-cost-nrv/). The 28th-to-3rd example, control transfer, documents, units, double-counting, dispatched/in-transit/received distinction, payment-date, cost-method and contract/accounting caveats are preserved.
Educational material is not individual investment, legal or tax advice.
