A refundable container charge should be reviewed separately from the price of the goods before the invoice is coded. The contract may require containers to be returned within particular conditions or allow them to be purchased outright. Retain the actual terms instead of classifying every amount labelled deposit in the same way.

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

Identify the separate amounts

Keep the supplier invoice, delivery note, container count and applicable return conditions. Record which company paid the amount and who controls the physical containers.

Ask whether the charge is refundable in cash, offset against later supplies or conditional on acceptance of returned items. These differences affect the evidence needed to recover or clear the balance.

Track returns and remaining exposure

Maintain a quantity and value schedule linked to the supplier account. Record dispatch and acceptance of returns separately if the supplier can reject damaged containers.

Give the accountant the terms before deciding whether an amount is a recoverable balance, part of a purchase or another item. Do not assume the word deposit settles GST treatment.

Example: only some containers are accepted

The company returns ten containers but the supplier credits eight. Keep the return acknowledgement, credit note and explanation for the rejected two. A courier delivery receipt alone does not prove the entire expected refund was accepted.

Reconcile the final outcome

Match credits and refunds to the original charge and ledger balance. Investigate differences before writing them off. Keep unresolved disputed charges visible with an owner. Separate physical custody, refund entitlement and accounting classification so the finance team can follow each part of the transaction.

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.