Inventory

Treat them as Goods in Transit and show them as an adjustment in the physical inventories report. Remember, these have already been accounted as purchases in your records. So while physically verifying inventories, the goods in transit is physically not present there, but the same is included in your records. This will cause a difference. Hence, it is prudent to show them as Goods in Transit and keep all supporting documents to vouch for the correctness of such transaction. This will also ensure proper control.