A Payment in Transit refers to the payment that has been recorded but has not yet been cleared or deposited into your bank account. It acts as a temporary status to help you keep track of payments that are on their way to being received.
This status is especially useful for businesses that receive payments through checks, bank transfers, or ACH payments—where there is a delay between the time the client makes the payment and when the funds actually reach your account.
This helps you:
Keep track of pending payments.
Maintain accurate cash flow records.
Avoid duplicate entries or confusion about payment completion.
Example Use Case
Let’s say your client sends you a check for an invoice on October 5th. You record the payment as a Payment in Transit since the check hasn’t been cleared yet.
Once the check clears and the amount is credited to your bank account on October 8th, you can update the payment status to Paid.
From the left sidebar, click on Invoices.
Click on the invoice for which you want to record the payment.
Click on the Invoice number/name.
Click on Actions button.
Click on Payment in transit.
A pane will appear; click on the checkbox.
Click on Save changes.