As the organizers of a local farmer's market, we occasionally issue promotional vouchers to people new to the community. Vouchers can be redeemed for tokens which are used as money at the market. When tokens are used to pay for a purchase, we reimburse the vendor for the amount used. In order to keep track of outstanding tokens, we would record tokens issued as a liability. Since some tokens could be used at a later date, or may not be used at all, it would seem we should not record the expense until we reimburse a vendor for tokens used. What is the correct way to record the transactions in this situation?
Do they have any value before the vendor requests payment? I will assume no, because they sound like company coupons in the Sunday paper...Charmin doesn't track each and every coupon.
That being said, I would not track the expense until the vendor requests a payment.
If you want to track these goodwill vouchers, I would use a separate mechanism (ie Spreadsheet).
Thank you for your response. These vouchers are more like gift cards than coupons, with values of $10 and up. Oustanding vouchers total close to $1,000. Would you still treat them as coupons, and not record the liability in QB?
Need QuickBooks guidance?
Log in to access expert advice and community support instantly.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
