Good day, @sandy71383.
I'll share with you the steps on how to record a gift card in QuickBooks Desktop (QBDT).
To start, create a liability account for the gift card:
- Go to the Lists tab and select Chart of Accounts.
- From the Account drop-down, select New and choose Other Current Liability under the Account Type.
- Enter the Account Name example Gift Card.
- Click Save & close when done.
Once done, create a service item and link to the account.
- Navigate to the Lists tab and click Item List.
- From the Item drop-down menu, select New.
- Choose Service in the Type field and enter the name of the gift card item.
- Under the income account, select the gift card liability account.
- Hit Save & close.
- Next, create a Non-Inventory type item named advertising expense and link it to the advertising expense account.
- Click Save & close.
To issue a gift card, you'll need to create a sales receipt for the customer. In the first line, enter the gift card item and the amount. On the second line, enter the expense item with the same amount but in negative form.
To redeem the gift card create an invoice, in the first line, list the item sold and the amount. In the second line enter the gift card item with the negative amount. The customer will pay the balance due if any.
Also, to ensure that your books are accurate, I suggest consulting your accountant to guide you in choosing the account to be debited.
You can also follow the recommended steps that were shared by rustler in this link: https://quickbooks.intuit.com/learn-support/en-us/other-questions/how-do-i-record-a-gift-card-a-gif...
Additionally, you may consider reading this helpful article: Manage A/R transactions.
This will help you in tracking your customer's transactions in QBDT.
Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this thread. Take care and have a good one.
