I have several restaurant clients who regularly donate Gift Certificates as promotional GC or as donations for fund raisers/community help, etc. The GC is recorded in a Liability account until it is redeemed and expensed as a Promo GC. It's the same GC Liability Account as GC that are "sold" to customers. When the GC is redeemed, the food and beverage is recorded as sales income which cancels out the Promo GC expense - we are now at Net "0". How can I enter this differently so I can actually take a deduction/expense for the Promo GC?
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