POS Gift Card Sold for Less Than Card Value

Thanks for providing me with the detail, @Bkkprgal.

And yes, you got it right. You can simply record this as a discount. You'll want to tell your client to add a discount line item with a negative amount -$25. No need to create a Discount Item.

Furthermore, check our Help articles for QuickBooks Point of Sale and read some useful articles for future reference. 

I'm always here in case you have other concerns. Our Community page is always open for you. Take care and keep safe!

@JasroV,

I basically has the same question, but based on your answer I had a couple more.

1.) How would doing a discount line for -$25 make this transaction look in terms of debits and credits?  And would the invoice at time of redemption look any different compared to when the cost and value of the gift card are the same?  If so, how would those debits and credits look?  And what happens if this gift card doesn't get redeemed over $100?  My thought was you couldn't record a discount on the sale of a gift card because revenue isn't recognized until the redemption of the gift card. But I don't see any other way to achieve a different value than cost.

2.) Is adding a discount line like you said any different from cresting a Discount Item besides the process of actually creating the item?

Hello there, @JayBook.

You'll have to create a discount item first to choose for you to choose in a discount line.

I’d love to assist in setting up a discount. However, since this is a public forum, I’m unable to provide details in regards to concerns related to this and can't pull up your account in a secure environment.

To do this, I suggest contacting our Customer Support team so they can assist you with the setup. You can check out this link for ways on how to connect with us: Contact Payments Support.

I’m here to help if you need anything else. Have a great day!