A goods return after stocktake should be recorded with its actual movement date and supporting evidence, then reconciled to the stock records and supplier claim. Do not rewrite the completed count simply to make it look as though the goods had already left. Ask the accountant to review the reporting cut-off and any adjustment required.

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

Identify the counted goods

Record the item reference, quantity, location and stocktake date. Keep the count sheet and any note explaining damage, incorrect specification or another reason for the return. Separate a proposal to return goods from an actual dispatch.

If the items were segregated at the count, preserve how they were described. A label saying awaiting return does not prove the supplier had accepted the goods back or issued a credit.

Trace the later movement

Retain the return authorisation where relevant, dispatch record, courier evidence and supplier acknowledgement. Identify who approved the return and which purchase it concerns. A courier collection alone may not confirm the quantity ultimately accepted by the supplier.

Example: the supplier accepts only part of the return

The company sends ten units after the stocktake, but the supplier accepts eight and queries two. Keep the quantities and reasons visible. Do not reduce the payable or clear the entire stock item on the assumption that all ten were credited.

Reconcile stock and financial records

Give the accountant the count position, dispatch date, supplier response and any credit note. Stock movements, supplier balances and GST records need their appropriate review. Avoid using an unexplained journal to force the stock listing and ledger to agree.

Retain the final resolution

Link the accepted credit or other settlement to the original purchase and return. Keep disputed items open with an owner and next action. IRAS recordkeeping guidance requires records that explain transactions; a dated movement trail makes the difference between the stocktake position and later supplier settlement understandable.

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.