I see, thank you for confirming.

They should really create two Actions from a PO form, (1) Create a Bill and (2) Create Item receipt.

My current work-around is -

1) book bill when invoiced,

2) check on month-end on what's still in transit,

3) Transfer amount of In-transit inventory, from Inventory account to In-transit inventory account.

4) Reverse on the expected month to be received.

Is this a sound practice? Thank you.