To use in-transit payments, you must create a clearing account to hold amounts that are intended to be paid but have not yet been received by the vendor’s bank. This account to hold interim funds is known as a Cash-In-Transit (CIT) account.
The CIT account you create must be an Other Current Liability type account. CIT accounts can be used only for journals and in-transit payment transactions.
After creating a CIT account, you can use it on transactions and to set preferences for in-transit payments.
In NetSuite OneWorld accounts, you can set a global preference to use one CIT account for in-transit payments in all subsidiaries, or each subsidiary can use a different CIT account. Once assigned to a subsidiary or global preference, the account can be used only for CIT transactions. If an account has previously been used on a transaction that is not an in-transit payment, that account cannot be assigned to a subsidiary or global preference for in-transit payments.