Following up supplier credits after the last order
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Keep following an outstanding supplier credit after the last order. Record what the supplier has actually agreed, what evidence exists and what outcome remains unconfirmed. Goods returned, a credit discussed and money received are different stages.
The accountant or responsible adviser must decide treatment, recovery and any proposed offset. This guide does not assume a credit can be exchanged for cash, deducted from another debt or recovered in full.
Identify the basis of the credit
Start from the return, correction or overpayment query. Keep its reference with the relevant invoice and supplier response. Use the stock return proposal where goods have been offered back but the commercial outcome is still unsettled.
A credit follow-up record should show:
| Field | Evidence to keep |
|---|---|
| Origin | Return, price correction or other specific query |
| Supplier agreement | Exact confirmed scope, with unresolved conditions |
| Document status | Credit note received, promised or still queried |
| Account position | Where the entry appears and any mismatch |
| Practical outcome | What the supplier confirms will happen next |
| Owner | Authorised contact and next review or enquiry |
Do not label a promise of a review as an agreed credit. If the supplier accepts only part of the request, preserve the remaining disagreement separately.
Ask what happens now that purchasing has stopped
For a fictional example, the supplier confirms a £200 credit on an account the business no longer expects to use. The existence of the credit does not explain its practical outcome. Ask the supplier about the applicable arrangement, and refer the answer to the responsible finance person.
The statement reconciliation worksheet helps check whether the confirmed document appears correctly. Do not add an expected credit to the agreed balance merely because the business considers it justified.
Keep correspondence accessible after the purchasing contact leaves. A future reply should reach someone who knows the reference and can find the evidence.
Close the query only on its actual outcome
Record the supplier response, authorised decision and evidence of what happened. If the position remains disputed or unresolved, give it a continuing owner instead of marking it recovered.
Bring any expected financial movement to the bank account meeting brief. Ask the appropriate parties how it affects the account decision; do not predict a receipt date to make the closure schedule fit.
Tell UK Auction Group if a supplier return or related ownership question changes which goods are available for disposal. Keep the financial follow-up within the authorised business process. A returned stock group and an outstanding credit can each remain open for different reasons.
Sources
This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.