How to sell at "Gift Card" type product that's purchasing credits to use towards our coaching calls and workshops?

Hello there, Shan100. Let me help you track your gift card credits for coaching calls and workshops in QuickBooks Online (QBO).

First off, you'll need to set up a liability account to track the value of outstanding gift cards. This account will reflect the business's obligation to provide services or products for the gift cards sold. Next, create a new product or service item for the gift card and ensure it is linked to the liability account you created in the first step.

Here's how:

1. Go to Sales and select Products & Services.

2. Click New and choose Non-inventory or Service.

3. Enter a Name and SKU (if applicable).

4. Select the appropriate category from the dropdown.

5. Check I sell this product/service to my customers.

6. Add a description in the Description on sales forms field.

7. Enter the Sales price/rate amount.

8. Select the created liability account.

9. Choose taxable or non-taxable, then click Done.

10. Finally, click Save and close.

When a gift card is sold, record the transaction in QBO using a Sales receipt to increase the balance in your liability account, representing the outstanding value of gift cards. To do this, here's how:

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

Moreover, you can refer to this article for detailed information and steps on redeeming and applying credit for a gift certificate balance in QBO: Sell and redeem gift cards or certificates in QuickBooks Online.

Furthermore, run a Transaction Detail by Account report for a detailed breakdown of each transaction and provide a monthly statement reflecting the credit balance. Here's how:

1. Go to Reports, then type Transaction Detail by Account on the search bar.
   
   
2. Click on Filter.
3. In the first column, select Account.
4. In the second column, choose equals, and then in the third column, find the liability account you created.
   
   

In addition, take time to reconcile your accounts to ensure they match your bank and credit card statements.

I'll keep this thread open for any other questions or concerns about tracking your gift card credits in QBO. The entire Community is always here to assist.

@Shan100 

Create a service product called "Coaching Credit", "Consulting Credit", or whatever name makes the most sense to you.  When you set up the product, select Deferred Revenue as the Income account.  The credits will need to have a dollar value assigned to them. 

When a customer purchases a credit(s), sell them on an invoice or sales receipt.  When the customer redeems a credit(s), enter the service product on a sales receipt or invoice as a separate line item and as a negative quantity.  That applies the credit to the invoice and also reduces the amount sitting in deferred revenue. 

To see the balance of credits used and available by customer, run a Sales by Product/Service Detail report.  Filter the report by the service item (Customize > Filter > Product/Service > Coaching Credit.