A card refund reconciliation should remain open until the merchant’s refund is matched to the actual card credit and accounting entry. A refund confirmation and a statement credit can arrive in different reporting periods. Keep the evidence linked without assuming the next statement will contain the expected amount.

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

Identify the original purchase

Record the merchant, original charge date, amount, currency and company card reference through restricted finance records. Link the refund correspondence to the original invoice or receipt.

Identify whether the merchant approved a full refund, a partial refund or store credit. A credit voucher should not be treated as cash received on the card account.

Track the statement timing

Keep the expected credit as a reconciliation item with an owner and follow-up date. Ask the accountant how the refund entitlement and any period-end entry should be recorded under the company’s accounting policy.

Do not enter a second reduction of expense when the card credit eventually arrives if the approved adjustment has already been posted.

Example: a foreign-currency refund differs

The merchant confirms the same foreign-currency amount, but the local-currency credit differs from the original debit. Retain both statement entries and any fee details. Give the accountant the exchange-rate and timing evidence rather than forcing the credit to equal the earlier local amount.

Close only with the actual match

Reconcile the merchant reference, card credit and ledger entry. Keep any remaining shortfall or charge dispute separately visible. IRAS recordkeeping guidance supports retaining source evidence; the correct accounting period still needs review using the particular refund terms and company records.

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.