Usually, the materials that are obtained for a specific job are not fully consumed or they are drawn in excess of requirements. The excess quantity is returned to the stores, together with a material return note.

The storekeeper should place the returned materials in the appropriate bin. In turn, a record of the materials should also be entered into the “In” or “Received” column of the bin card.

Format of Material Return Note

Material Return Note Format

Material Return Note: Explanation

Two copies of the material return note are prepared. One copy is retained by the department that returned the materials and the other is kept by the storekeeper, who receives the note along with the materials returned.

Notably, a material return note is similar to material requisition. To avoid confusion, material return notes may be issued in red ink or printed on different-colored paper.

The material return note is forwarded to the costing office, where the rate and amount are entered. Additionally, the necessary credit for the value of the materials returned is allocated to the particular job.

Frequently Asked Questions

Why should a material return note be prepared when included materials are being returned?

A material return note is prepared to determine the value of materials that have been returned. Therefore, it is necessary to prepare a separate note in addition to the one that was originally issued when the materials were received from stores.

Why does a storekeeper require two copies of the material return note?

One copy is retained by the department that returned the materials and the other is kept by the storekeeper, who receives the note along with the materials returned.

Where is the material return note forwarded to?

The material return note is forwarded to the costing office, where the rate and amount are entered. Additionally, the necessary credit for the value of the materials returned is allocated to the particular job.

When are the materials allowed to be returned?

Materials are only allowed to be returned when it is reasonable to do so and does not involve any waste or spoilage, or create a likelihood that wasteful practices will recur.

A material return note was originally prepared when the materials were received from stores. Is this original note still required?

No, a separate note is not required to be completed at the time of receiving returned materials because one was already prepared earlier.

Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.