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despitia11
December 10, 2020
Question

Tracking Redeemed Gift Cards

  • December 10, 2020
  • 1 reply
  • 5 views

Hello I hope I am asking the question in the correct topic and section. I need guidance on how to keep track of redeemed gift cards. I am using QuickBooks Desktop Pro 2019 and Square as my POS. I have set up my Gift card certificate account as a liability in my chart of accounts and my item for gift card certificates and linked them together. I have also created a payment item for gift card payments. I get my daily sales report from my POS and enter it on QuickBooks as receipts since I do not keep track of customers. So I far when I sell a gift card I use the item gift card certificate to track the sale of the gift card. And if somebody pays with a gift card, I use the payment item gift card payments and track how much was paid with gift cards. But my liability account for gift card does not decrease when I receive payments with gift cards. How can I make QuickBooks reflect actual balance on my gift card liability or should I just compare the liability account and subtract what ever payments I have received?

1 reply

M
MadelynCModerator
Moderator
December 10, 2020

Yes, you can @despitia11.


I can provide information so you can track redeemed gift cards in QuickBooks. 


Since you’ve already set the account and item in the program, you can compare them by subtracting the payments you’ve received. You can get an idea of your total gift vouchers redeemed for the period of the sales report.


Gift vouchers will only be included in sales figures until they have been redeemed and transferred into the revenue. When creating Sales Receipt in QuickBooks, you’ll want to make sure the amount is set to negative. This way, the balance on your liability account will automatically decrease. 


If you have other queries besides tracking the redeemed gift cards, please let me know. I'm always here anytime to be your guide. Have a good day. 

D
despitia11Author
December 10, 2020

So, I would use the same gift certificate item on my sales receipt and record a negative value when some one redeems a certain amount? What about when I sell a gift card and some one else redeems their gift card, would I have two lines for the gift card certificates one in positive for the sale and one for negative? But, if  that is the case then the total will not be zero?

M
Mark_RModerator
Moderator
December 10, 2020

Your confusion ends here, @despitia11.

 

Allow me to provide additional information about tracking redeemed gift cards and help you from there.

 

As my colleague mentioned, entering a negative amount for a redeemed gift card will reduce the liability account balance. When the gift cards are purchased, you can credit them to the liability account (Gift card certificate) instead of crediting revenue. It is a liability because you owe the customer the value of the gift card. And when the gift card is redeemed, you can set up the Gift Cards as a payment method. This way, it'll credit to sales and debit to Gift Cards to reduce the liability

 

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

 

You can always get back to here in the Community if you have any other questions. I'll be more than happy to assists you. Wishing you all the best.

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