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Mebs1
Level 3

Visa gift cards

Hello,

 

My client had to move their offices to a new location and had help from some employee's spouses. In order to thank them they gave them visa gift cards. How do I enter that on Quickbooks? Is it still a liability or should I enter it as an expense?

 

Thank you ! :)

Solved
Best answer May 31, 2022

Best Answers
LollyNino_C
QuickBooks Team

Visa gift cards

Hello there, @Mebs1

 

I'm here to help you handle the customer gift cards in your account. 

 

First off, you'll need to create a liability account called "Gift cards". Then, create a service item using the same account selected as the income account named gift card. With this, you can track the amount in that account. You can follow the steps below: 

 

  1. Go to Chart of Accounts, then click New.
  2. In the Account Type drop-down, select Other Current Liabilities.
  3. In the Detail Type, choose Trust Accounts - Liabilities.
  4. Enter GC Issued in the Name field.
  5. Tap Save and Close. 

 

Once done, create a service item for the gift certificate that we will link to the account previously created. Here's how:

 

  1. Tap the Gear icon, then choose Products and Services.
  2. Pick New and select Service.
  3. Add the name Gift Card in the Name field.
  4. In the Income account drop-down, select GC Issued.
  5. Click Save and close

Then, you can now create a sales receipt for the GC you're going to give to your customers.

 

  1. Click the Plus (+) icon, then select Sales Receipt.
  2. Select the customer's name.
  3. Choose Gift Card from the Product/Service drop-down.
  4. Enter the amount.
  5. In the Deposit to section, choose Marketing Expense.
  6. Click Save and close.

Now, you can create an invoice to redeem the gift certificate. Here's how:

 

  1. Tap the Plus (+) icon, then select Invoice.
  2. Find and select the customer's name.
  3. On the first line, select the Item being bought.
  4. Add the amount.
  5. On the second line, select the Gift Card (the one linking to a liability account), and enter a negative amount.
  6. Hit Save and close.

See this article to learn more about handling gift certificates in QBO: Sell and Redeem Gift Cards or Certificates in QuickBooks Online

 

Don't hesitate to reply anytime if you still have questions or concerns with gift cards. I'm more than willing to assist you. Take care and have a good one. 

View solution in original post

3 Comments 3
LollyNino_C
QuickBooks Team

Visa gift cards

Hello there, @Mebs1

 

I'm here to help you handle the customer gift cards in your account. 

 

First off, you'll need to create a liability account called "Gift cards". Then, create a service item using the same account selected as the income account named gift card. With this, you can track the amount in that account. You can follow the steps below: 

 

  1. Go to Chart of Accounts, then click New.
  2. In the Account Type drop-down, select Other Current Liabilities.
  3. In the Detail Type, choose Trust Accounts - Liabilities.
  4. Enter GC Issued in the Name field.
  5. Tap Save and Close. 

 

Once done, create a service item for the gift certificate that we will link to the account previously created. Here's how:

 

  1. Tap the Gear icon, then choose Products and Services.
  2. Pick New and select Service.
  3. Add the name Gift Card in the Name field.
  4. In the Income account drop-down, select GC Issued.
  5. Click Save and close

Then, you can now create a sales receipt for the GC you're going to give to your customers.

 

  1. Click the Plus (+) icon, then select Sales Receipt.
  2. Select the customer's name.
  3. Choose Gift Card from the Product/Service drop-down.
  4. Enter the amount.
  5. In the Deposit to section, choose Marketing Expense.
  6. Click Save and close.

Now, you can create an invoice to redeem the gift certificate. Here's how:

 

  1. Tap the Plus (+) icon, then select Invoice.
  2. Find and select the customer's name.
  3. On the first line, select the Item being bought.
  4. Add the amount.
  5. On the second line, select the Gift Card (the one linking to a liability account), and enter a negative amount.
  6. Hit Save and close.

See this article to learn more about handling gift certificates in QBO: Sell and Redeem Gift Cards or Certificates in QuickBooks Online

 

Don't hesitate to reply anytime if you still have questions or concerns with gift cards. I'm more than willing to assist you. Take care and have a good one. 

Mebs1
Level 3

Visa gift cards

Thank you so much for your help!!

 

 

LieraMarie_A
QuickBooks Team

Visa gift cards

You're always welcome, Mebs1.

I'm happy to hear that my colleague was able to help you handle the customer gift cards in your account.

Feel free to reach out to us again if you need help with anything else. Have a wonderful day!

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