Palautusvelka

Palautusvelka is a Finnish accounting term for a liability arising from expected customer returns of goods or services, or from related refund obligations. It represents the amount a company anticipates it may have to repay to customers or credit them for, due to returns, recalls, or rights of return included in the sale contract.

The concept commonly appears in sales with a right of return, as well as in contexts such as product recalls or service cancellations. When a sale is made and a return obligation is probable and measurable, the company recognizes a return liability for the estimated amount. At the same time, revenue may be reduced to reflect the expected returns, and an asset may be recognized for the right to recover returned goods if applicable. The balance sheet presentation depends on the expected timing of the returns, typically as a current liability if returns are anticipated within the next year, or non-current if longer.

Measurement and updates are based on management’s estimates, historical return rates, and changes in circumstances. The liability is adjusted as more information becomes available—actual returns reduce the liability, while new estimates increase it. Palautusvelka is distinct from warranties or guarantees, which are generally managed under separate provisions and relate to ongoing product performance rather than the act of returning goods.

In practice, the concept helps align revenue recognition with potential post-sale obligations and provides visibility into the financial impact of product returns on profitability.