Transit invoices

A transit invoice is used to release invoices and record tax liability. To use this invoice option, you must set up the Payables company to create transit invoices and define a distribution code. Invoice expense distributions are assigned by a distribution code to a transit expense account. This transit account is specified in the distribution code at the company, process, vendor or company, or vendor level. The expense portion of the invoice is distributed to the transit account. The expense portion is the amount of the invoice minus the tax amount.

You can only create transit invoices if you selected the Create Transit Distributions check box on the Options tab of Payables company.