We issue GC to customers when there are customer service issues, giveaways, donations, etc. No payment is taken here, we are offering this GC as a free gift to a customer.
We need to make an entry when the GC is issued:
DR: Marketing Expense
CR: GC Issued (Liability)
When the GC is redeemed:
DR: GC Redeemed (Liability)
And what entries need to be made for COG and Sales Tax?
Hi there, @ds95.
You can record the Gift Card (GC) as sales receipt when issued and invoice when redeemed. I'd be glad to walk you through the process.
First off, you'll need to create a liability account named "GC Issued." Here's how:
Then, create a service item that should link to the liability account. Let me guide you how.
Once done, you can now create a sales receipt for the GC you're going to give to your customers.
Then, create an invoice for the redeemed GC. Here's how:
After those steps, you'll be able to record your GC based on your sample entries.
Here's an article you can read on for more details: Sell and Redeem Gift Cards or Certificates in QuickBooks Online.
In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help.
Don't hesitate to leave a comment below if you have any other questions. We're always here to help.
You know I understand how to do this, and reading the intuit reponse leaves me wondering what the hell they are explaining - not only that but part of it is just wrong.
Create a liability account called gift cards, and create a service item which has that same account selected as the income account named gift card
Create a non inventory type item called advertising expense and link it to the advertising expense account
to issue the gift card
create a sales receipt for the customer
line one, gift card item, qty one, amount
line two, advertising expense item, qty -1, same amount (that is a negative one)
save the zero dollar transaction
to redeem the gift card
list the items being sold
list the gift card item, qty -1, and the amount (that is a negative one)
the customer pays the balance due if any
While entering Sales Receipt -
1- I have entered client's name
2- selected Gift Card from product / services
but, not able to find Marketing in Deposit To.
can someone help..please.
Thanks for trying the steps provided above, Umme.
You can only select a Bank or Other Current Assets type of accounts in the Deposit to field. Hence, the Marketing expense account is not a choice. Make sure to select the correct account in the Deposit to field so you can see it on your register.
You can use this article on how you can record and redeem gift cards: Sell and redeem gift cards or certificates in QuickBooks Online.
Your accountant would be a great help about this topic, too. They know the best way to enter the transactions and ensuring that it suits your accounting preference.
Feel free to drop by if you have more questions. Have a great day!
I am just learning Quickbooks and the issues I am having is with the partner app Receipt Bank that made all the uploaded receipts from all items already paid for travel meals, lodging, flights etc as a bill and I don't know how to fix that. Also I have many items that were all ready paid for such as the items above used with gift card redemption , cash or credit account that were closed. How do I input this into QB?
Hope you're doing great today, @hcharles03.
To help determine why the receipts for your items paid are showing as a bill, I recommend contacting Receipt Bank. They'll be able to identify the root cause of this matter, especially with the mapping of the transactions, and provide a fix.
On the other hand, when it comes to entering your transactions that was paid through a gift check, you may follow the instructions provided by
Mark_R or Rustler above. Those are the different ways of tracking entries that were paid using a gift certificate.
To learn more about the process of selling and redeeming gift cards in QuickBooks Online, feel free to check out this link: Learn how to sell and redeem gift cards or certificates in QuickBooks Online.
Please let me know if you have any other questions about this or with QuickBooks. I'll be right here for you. Take care!
Good day, @Momok.
It's my priority to help you with recording your transactions in QuickBooks Online when a customer redeems a gift certificate by purchasing your product.
Once a customer purchased a product from your website or physical store, this is considered a sale. That said, you'll need to create an invoice transaction to track this entry.
However, 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. You can follow the steps shared by Mark_R above on how create them.
After that, you can now start generating your customer's invoice.
Your invoice should look like this:
To give you more insights about this process, you can always scan through this link: Learn how to redeem gift cards or certificates in QuickBooks Online.
Know that you can always get back to me anytime if you have any other concerns, @Momok. I'd be happy to assist you. Take care!