Following would be helpful regarding your question :
Stock in Transit (in Inventory tab) - specify an account to be
used when copying A/P Reserve Invoice in to A/P Credit Memo In releases prior to 2007 A, the transaction of an A/P Reserve
Invoice copied into A/P Credit Memo used to be posted to the
Allocation account the same as when copying a regular A/P Invoice into A/P Credit Memo. This new account enables you to distinguish between transactions of A/P Credit Memo that are based on regular A/P Invoices and A/P Credit Memos that are based on A/P Reserve Invoices.
You can refer to Note No. : [1090171|https://websmp130.sap-ag.de/sap(bD1odSZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=1090171] regarding the above information.
Hope it helps.
SAP Business One Forum Team