Buying at a discounted gift card

chaoxu · ‎February 19, 2021

I have an account storing gift cards (other current asset)

I bought a $100 gift card for $80 from a vendor using my bank account.

So in the end the change should be:

- bank account decrease by $80

- gift card account increase by $100

- there is this net income of $20, so I probably have a income of $100

- I should have incurred an expense of $80 to this vendor

How do I record this?

Adrian_A · ‎February 19, 2021

We can create an Expense to record this one, chaoxu.

Let me guide you how:

From the + New button, select Expense.
Select a Payee.
In the Category section, select a category and then enter $-20 as the AMOUNT.
Go to the Item details field.
Select the gift card item.
On the AMOUNT column, enter $100.
Click Save and close.

I've also added this screenshot as an example:

Afterward, the total should show as $80 while the gift card asset is $100.

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help.

Don't hesitate to leave a comment below if you have any other questions. We're always here to help.

chaoxu · ‎February 19, 2021

Thank you.

What is that item details thing, I don't see it.

RenjolynC · ‎February 19, 2021

Thanks for coming back here, chaoxu.

The Item Detail section will show up if you've enabled the option in the settings. This will allow you to use items instead of accounts.

Here's how:

Go to + New > Expense.
Click the Gear icon beside the Take a tour link located in the upper right-hand corner.
Put a check mark on the Show items table box.
In the Attention pop-up window, select Turn on setting.

Please see this sample for a visual guide:

For more information about recording gift certificates, you can read this article: Record gift certificates purchased from vendors.

I'm here to answer any questions you have or other concerns with your QuickBooks Online account. Have a great day!

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