Learn how to sell and redeem gift cards or certificates in QuickBooks Online.
When you accept payment for a gift certificate, you accept the liability to redeem the gift certificate at some time in the future. In order to fulfill that obligation and track the transaction in QuickBooks Online, you need to set up a liability account and special items to use on a gift certificate invoice.
How to sell a gift certificate
Before you get started, make sure you add the gift certificate as a product.
- Select + New.
- Select Sales receipt.
- Fill out the sales receipt, then select the payment method and where the gift card amount will be deposited to.
- Enter a line under PRODUCT/SERVICES and choose the gift certificate you added.
- Add the gift card amount and the sales tax rate.
- When you’re done, select Save and close.
How to redeem a gift certificate
When your customer is ready to redeem their gift certificate, you’ll create an invoice in QuickBooks to track it. Here’s how.
- Select + New.
- Select Invoice.
- On the first line, select the Product/Service being bought and fill out the quantity and amount.
- On the second line, select the Product/Service for Gift Certificates (the one linking to a liability account), and enter in a negative number for the amount of the gift certificate.
How to give a credit for a gift certificate balance
If the amount of the gift certificate is more than the amount of the purchase, you can either give the customer cash or a credit.
- Select + New.
- Select Credit memo.
- In the first line(s), enter in the Products/Services being purchased. Instead of entering a positive amount (5.00) enter in a negative amount (-5.00).
- In the last line, select the Product/Service you are using for Gift Certificates. Enter a positive amount.
- If there is 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.