How to record business expenses paid with a gift card?

Welcome back to the Community, @dbias.

You need to record the gift card/certificate first in QuickBooks Online (QBO). Then, create an expense an use it as a payment method for the business expense.

Here's how to record the gift card/certificate:

1. In QBO, go to the + New button at the top left to get to the Expense.
2. Select the vendor you got the certificate from in the Payee drop-down.
3. In the Payment account dropdown, pick the account used to purchase the gift certificate (checking, credit card, petty cash, etc.).
4. In the Category details section, tick the Category dropdown and choose the gift certificate account for this vendor. 
5. Enter the amount, then hit Save.

Once done, you can now create an expense an use it as a payment method. For further guidance with the process, refer to this article and proceed to How to use a gift certificate section: Record gift certificates purchased from vendors.

Please leave a comment below if you have any other questions or concerns. I'll be more than happy to help. Have a good one!

What if it was a gift given to me and not something I purchased?

Thanks for coming back, @dbias.

The previous agent has provided steps on how to use a Gift Card as a Payment Method. I'm here to give you another way you can use Gift Cards in QuickBooks Online. You can set up an account or sub-account in the Chart of Accounts and use it to record transactions and keep track of the balance for the Gift Card. No worries, I've provided the steps below on how to do this process with ease:

First, you'll want to set up an account or sub-account:

1. Go to the Gear icon and select Chart of Accounts.
2. Press on the New button in the top right corner. 
3. Click on the Account Type drop-down to select the account type.
4. Select the Detail Type to specify the type of account that you want to add.
5. Enter the name of the account in the Name field.
6. You have the option of including information in the Description field and an amount in the Balance field. 
   • To note: If you'd like to make it a sub-account, then you can mark Is sub-account and choose whichever parent account.
7. Hit Save and Close.

Now that you have your register setup, then you can record transactions to keep it balanced and show the money movement. Here's how to record the Expenses:

1. Press on the +New button in the left-hand menu, then select Expense.
2. In the Payee field, specify a supplier. You can specify the name of a person or a business. If your transaction covers multiple petty cash expenses, leave this field empty.
3. Select the Payment account to which to credit this expense. 
4. Enter the date of purchase in the Payment Date field and specify the Payment Method for the expense.
   • (Optional): You can use Ref no. field to enter an identifying number from the purchase receipt. (Note: QuickBooks Online Plus users: When location or class tracking are turned on, additional fields for Location or Class appear. You can turn on location or class tracking features in Account and Settings on the Advanced tab).
   • (Optional): Enter a description of the expense.
5. Enter the amount of the purchase and any Tax paid (if applicable).
6. Hit Save and close.

For reference, here's a Community Article that explains more about Expenses in QuickBooks Online. 

That's all there's to it! You can see the register in your Chart of Accounts of your Gift Card transactions and balance.

If you need further assistance, please don't hesitate and reach back out to me. Have a great rest of your week.

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Using a Gift Card as a payment method.

(Gift Card TRADE).

I cannot find instructions for quickbooks desktop not Quickbooks online.

Manager has an electrician do some work.

Electrician handed an invoice for 500.00  (This is an example)

He said he would take a 250.00 Gift Card as payment

and he deducted that from the invoice.

The Manager handed him a check for 250.00 for the electrical work

and 250.00 in Gift card.    

He input this in the POS as a Gift Card Trade. 

Unfortunately.  Things do not balance. 

can you tell me how to input this transaction in quickbooks dekstop?

IN QUICKBOOKS DESKTOP?

Hello, Mgmt1.

I'll be happy to share the steps for the desktop version.

Here’s how to create a cash account that you’ll use to record and track the balance of your gift certificates.

1. Go to Banking > Write Checks.
2. From the Bank account drop-down, select the account used to purchase the gift certificate (checking, credit card, petty cash, etc.).
3. Select the vendor you got the certificate from the Payee drop-down.
4. In the Expenses tab, select the Account drop-down and choose the gift certificate account for this vendor. If you don’t have an account for the vendor yet, click the <Add New> option. Then, select Bank and enter the account a name specific to the vendor and its status as a gift certificate account. Example: Joe's Hardware - Gift Card. Click Save & Close.
5. Back in the Expenses tab, enter the amount of the gift certificate.
6. Hit Save & Close.

Once done, you can use the gift certificate when you buy products or services from the same vendor you got it from.

Here's how:

1. Go to Banking > Write Checks.
2. From the Bank account drop-down, choose the gift certificate account for the vendor. You can see the current account balance on the right of the Payment account field.
3. Select the vendor you got the certificate from the Payee drop-down.
4. Enter the remaining details of the purchase, then click Save & Close.

After using the gift certificate, you can keep the account for future certificates from the same vendor, or you can deactivate it.

To help manage your expenses in QuickBooks Desktop, please check out this article: Create, modify, and print checks.

Fill me in if you have any additional questions or need help with other concerns in your account. I'll be around to help. Have a good day ahead.