We use a liability account for Gift Cards Payable. When the gift cards are purchased, instead of crediting revenue, we credit Gift Cards Payable. It is actually a liability because you owe the customer the value of the gift card. I have gift cards set up as a payment method so when the card is redeemed, it is a credit to sales and the payment method of Gift Card. We have other non-cash payment methods here as well, so when we have non-cash sales, on the deposit screen we insert a line below the item and enter the GL account for Gift Cards Payable and a negative amount for the amount of the sale. That creates a debit to Gift Cards Payable to reduce the liability. Hope this helps.
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