Thank you for answering.  I hope I am not being dense here, but I still am confused.  I did the steps you outlined, but that does not record the $ I received from the person purchasing the gift card in my bank account.  I did go to receive payments to see if I could find it there, but it is not.  I feel like I am missing a step.  Thanks.

@KimWK 

When you enter a sales receipt, two things happen:

1) The product selected gets a credit entry.  If your gift card product is mapped to your gift card liability account, then it will increase the liability.  You want this to happen when you sell a gift card/certificate.

2) The account selected under the 'Deposit to' drop-down gets a debit entry.  If you select a bank account, it will make a deposit to that account.  If you select 'Undeposited Funds', that holds the funds in limbo until you go to Make Deposits, at which point you can combine all/some of your Undeposited Funds into deposits as they are made to the bank.  If you selected your bank account under the 'Deposit to' drop-down on the sales receipt, go to your bank account register to see it.  You will not see it under Receive payments.  Receive payments does not apply to sales receipts.  That is for payments received on invoices.  

Thank you, thank you, thank you!  I missed the "Deposit to" drop down! 

What is the purpose of the Advertising Expense account for the gift cards?  I already have an Advertising Expense account?

Hello, mcm09.

Thank you for reaching out with your question regarding the Advertising Expense account for the gift cards. I understand that you already have an existing Advertising Expense account and are curious about the purpose of a separate account specific to gift cards.

The separate Advertising Expense for gift cards is used as an offsetting account to itemize the individual amounts associated with the gift cards. This setup is particularly useful for accurately tracking and managing the specific costs related to the promotional activities of your gift cards.

If you want to ask for more details, please consult with your accountant. They provide professional expertise and strategic insights crucial for effective financial management and business success.

Additionally, you can generate financial reports in QuickBooks to understand your business's financial position, make strategic decisions, maintain transparency, and ensure compliance. They are fundamental tools that contribute to the overall success and stability of your company.

If you have any further questions or need additional clarification, please don't hesitate to add a response, mcm09. We're here to help and ensure that your accounting needs are met.