Material returned note
A material returned note records unused material returned from a job or department to stores. It identifies the original cost object, material and quantity and supports reversing the relevant part of the earlier issue. Use the valuation basis required by the system or question and check condition before accepting the material as usable inventory. A return between internal locations is not automatically a supplier return.
Worked example
A job returns five unused units originally charged at $8 each. A consistent reversal credits the job $40 and restores $40 to stores inventory.
Common mistake
Do not record an internal material return as new sales revenue or confuse it with goods sent back to an external supplier.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |
