Customer-owned equipment is included in a stock count: separate custody from the ledger review

Identify customer-owned equipment separately during the count and give the accountant the contract and custody evidence. Physical possession alone does not settle how the item should appear in the company's accounting records.

Establish why the equipment is held

Record the customer, item description, serial number, location and date received. Collect the repair, storage, loan or other agreement explaining the arrangement. Check whether the company bought the item, holds it temporarily or has other contractual rights and obligations.

Ask the accountant to assess the classification under the actual arrangement. Avoid adding an item to company inventory or fixed assets merely because it was present on the premises.

Reconcile the custody list

For example, a workshop holds a customer's machine while servicing it. Label the count record with its customer reference and match the machine to the receipt and service order. Record missing identification or uncertainty for investigation rather than guessing ownership.

Keep company-owned consumables and spare parts used on the job identifiable in their own records. A customer's machine and the company's parts may require different accounting treatment even when they are stored together.

Retain the review evidence

Keep the custody count, supporting agreement and accountant's conclusion linked to the reporting file. Record any liability, insurance or return question for the appropriate owner to resolve. When the equipment leaves, retain the authorised release and receipt so the custody history closes accurately.

Related practical guidance

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

Official guidance: the relevant 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.