Supplier refund evidence should explain why money returned to the company and which balance it settles. Link the bank credit to the original transaction before treating it as income or an expense reversal. A refund without a credit note may concern an overpayment, deposit or another event, so first establish what actually happened.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Identify the original payment

Record the supplier, payer company, currency, bank reference and amount received. Locate the relevant invoice, advance or deposit and any earlier payments. Similar bank narratives can relate to different supplier accounts.

Ask the purchasing or finance owner for the commercial reason. An email saying refund processed may not identify whether goods were returned, an invoice was reduced or a duplicate payment was repaid.

Reconcile the outstanding balance

Build a short schedule linking the original amount, any credit already recorded, the refund and remaining balance. Check that the refund has not already been entered manually before the bank feed imports it.

Ask the accountant which supporting document is needed for the actual event. Do not create a supplier credit note internally and present it as the supplier’s document merely to complete a software field.

Example: a duplicate payment comes back

The supplier returns an extra payment while the original invoice remains valid and settled. Match the refund to the overpayment balance. Reversing the original purchase would misdescribe what happened even though the cash received equals an earlier payment.

Review GST separately

A bank refund does not by itself establish the tax adjustment or period. Give the accountant the original claim history and any supplier clarification. Retain unresolved requests for missing documents and the reviewed accounting conclusion so the transaction remains explainable after the cash is reconciled.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.