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Level 2

Prepaid Card Sale

Hi QBO community,

 

I sell prepaid cards like Amazon, Google Play, Restaurants (not related to my business at all). How should I record the sale of a prepaid card in my daily sales? The company that provides the cards debits my bank account for the amount of the card sold plus commissions (all netted in one transaction). So I am not sure how to show this sale x charge.

 

Any help is appreciated. Thank you!!

 

 

1 Comment
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Level 6

Prepaid Card Sale

Hey izabel-mendesmds,

 

QuickBooks Online is designed to make complex accounting simple by handling most of it in the background. Selling of prepaid cards varies greatly on a case-by-case basis, so it's just a matter of finding the ideal to record it for your situation. There are a few options that are commonly used. I'll be happy to go over these with you, but I strongly recommend speaking with your accountant before proceeding. 

 

Your accountant is an incredible ally in recording things correctly, and you can easily invite them as a user so you can work on this together. To find one in your area, simply head to the My Accountant tab in QuickBooks Online then click on Find a pro to help. They'll be able to determine how this should be recorded for your business.

 

The two main options for you to consider are the following:

  • If everything happens in a single transaction, you can add a negative line on your sales forms. This will reduce the amount recorded in your bank account, and you can create a product to record this expense. Simply set the desired expense account as the Income account for a new product.
  • If these prepaids cards are considered an asset with material value, consider making use of inventory tracking. This powerful feature automatically keeps track of your inventory asset, and records the costs of goods sold for you. Check out this handy article to learn more: Add inventory products in QuickBooks Online

Let me know what you decide!