If you have managed to get a clause of having the right to return the goods to the supplier at the end of the period and having to pay only for those you actually sold, there are a couple of things you might want to consider.

For starters, there is no need to have those goods piled up on inventory taking. It’s best to have them being counted and shipped off to the suppliers well before the stock take date to ensure you have as less to count as possible.

You always need to make sure those goods are either kept separately in stock, labeled uniquely or otherwise there are means to separate them from other supplier goods. You don’t want them to get all mixed up with goods you have no right to return.

When dealing with such goods, a thing to remember is also that there is no need to include them into inventory movement calculations – you have the right to return them so why consider any write-offs?

As it happens, those contracts with suppliers may also determine the period during which the “right” is applicable. Your responsibility is to keep track on all those periods and ensure that goods are counted, reported as “sold” and shipped back to the supplier well within the timeframe.

So, all in all, those terms are real winners in contracts, but do make sure they are separated clearly and you have an overview of due dates.