Gift cards tracking in Square retail and QBO

Let me share some information about selling and tracking gift cards, Brickworks.

When it comes to tracking the gift cards in Square for retail, it would be best to contact their technical support. They'll provide you with details on how to record the transactions. However, if you want to track them in QuickBooks Online (QBO), we'll need to set up a liability account and special items to use on gift cards or certificates invoice. When accepting payment for gift cards, you accept the liability to redeem the gift certificate at some time in the future.

Before you get started, make sure you add the gift card as a product. Here's how: 

1. Click the + New Plus icon. 
2. Select Sales receipt.
3. Fill out the sales receipt, then select the payment method and where the gift card amount will be deposited to.
4. Enter a line under PRODUCT/SERVICES and choose the gift certificate you added.
5. Add the gift card amount and the sales tax rate.
6. Press Save and close.

When your customer is ready to redeem their gift certificate, you’ll create an invoice in QuickBooks to track it. Let me show you how: 

1. Click the + New Plus icon.
2. Choose Invoice.
3. On the first line, select the Product/Service being bought and fill out the quantity and amount.
4. On the second line, select the Product/Service for Gift Certificates (the one linking to a liability account), and enter a negative number for the amount of the gift certificate.

If the amount of the gift certificate is more than the amount of the purchase, you can either give the customer cash or credit.

1. Click the + New Plus icon.
2. Tap Credit memo.
3. In the first line(s), enter the Products/Services being purchased. Instead of entering a positive amount (5.00) enter a negative amount (-5.00).
4. In the last line, select the Product/Service you are using for Gift Certificates. Enter a positive amount.
5. If there is a tax on this sale, enter it in as a negative amount. The amount in the Total Credit field will show how the credit amount the customer has left from the Gift Certificate.

I'm adding this article about syncing with Square. It explains the setup, the things you need to do in QBO, and the mapping of transactions. 

Feel free to comment here if you have additional questions about tracking and recording transactions. I'll be there to assist. Have a great day ahead.