@MKT22191 wrote:
Good morning, QB community!
My company is start selling gift certificates to customers.
1. When creating the item in inventory, what are the income account and expense account?
Income is the gift certificate liability account
expense is COGS
insure the cost block is zero
But I would use a service item and not inventory
2. Why do I need to select tax rate on the gift certificate and why it is not included in the total price?
Double check your state requirements, most states the sales tax is calculated when the sale is made and the GC is just a form of payment.
Sales tax does not affect the sales price, it just tells QB whether to calculate it or not.
3. I need to issue an invoice to a customer who purchased the gift certificate. How does this should be handled/entered? The link above only mention about an invoice when the gift certificate is redeemed.
When you sell the GC you use a sales receipt. When you redeem the GC you can use an invoice or a sales receipt depending on the situation
Thank you for your help. Have a good weekend!
