Itunes v 11.0.2.26 windows - iphone 5 - when updating software asked to transfer purchases - when i go to file - trnasfer purchases is longer an option in this?  What am i doing wrong?

When attempting to update to iOS 6.1.3 i get the messge:  "there are purchased items on the iPhone "" that have not been transferred to your iTunes library.  You should tnasfer these items to your iTunes library before updating this iPhone.  Are you shure you want to continue?"
I cancel.  Go to File to look for the Transfer Purchases item like I always used to, and it is not there - not even greyed out.  What am i missing?

With the phone connected, go to File>Devices>Transfer Purchases.

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