That is what we are doing today in my infamous bathroom. The toilet is enclosed, (thankfully) in it's own tiny room. There is still no toilet (in yard), but it is a small room none the less with hole in floor.
My husband spends so much time in there, I wanted to give him something interesting to look at. Here's a hint... the boys in my family prefer the outdoors when they gotta go. More on that later... and I DO plan to move my toilet back inside, ASAP.