Purchased gift cards using credit card rewards, how to record

Forum|Forum|6 years ago
May 6, 2020
1 reply
10 views

A non-profit organization purchased gift cards to auction off using their credit card rewards. How do you record this in QBO correctly?

QuickBooks Online

MaryLurleenM

Level 6

Hello there, FLHVenture,

You'll want to create a journal entry to show that you have gift certificates.

You can make journal entries in QuickBooks by following these steps below:

Select +New icon.
Select Journal entry.
Fill out the fields to create your journal entry.
Click Save and close.

I recommend consulting an accountant to help and guide on which account to debit and credit. Your accountant can provide more expert ways of dealing with this situation and help you create the right account.

Check out these articles to learn more in recording and redeeming gift certificates in QuickBooks Online:

Stay in touch if there's anything else I can help you with.

FLHVentureAuthor

Maybe I should be clearer with my question. I am aware of how to do a journal entry, just not how to record transactions (ie. category). Since the gift cards are going to be auctioned off, is this considered an asset? What category will the credit card reward points used to purchase the gift cards for auction be? Is this an income or expense? Do I create a cash account (credit card reward points)? Then use asset to offset?

plc2021

I have the same question. Did you ever get an answer?

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