Was this page helpful?
Thank you!

Comments or suggestions?



Enter Email Address (optional)
email

Recording and Redeeming Gift Certificates or Gift Cards to Sell or Donate

Selling and Redeeming Gift Certificates or Gift Cards to customers to use for later purchases can be created in QuickBooks.

To Sell the Gift Certificates or Gift Cards a receipt of cash and a future liability will need to be recorded. But to donate Gift Certificates or Gift Cards, an expense and future liability will need to be recorded.
 
 
Detailed instructions

To record Gift Certificates or Gift Cards, create two accounts and two items:

  • A Current Liability account to record the amount of unredeemed Gift Certificates or Gift Cards and track Future Liabilities.
  • An Expense account to record Gift Certificates or Gift Cards Donated.
  • An Other Charge item to record Selling and Redeeming Gift Certificates or Gift Cards.
  • An Other Charge item to record Donating Gift Certificates or Gift Cards.

When Selling or Donating Gift Certificates or Gift Cards enter a Sales Receipt with a positive Gift Certificates or Gift Cards amount.

When Redeeming Gift Certificates or Gift Cards, use a normal sales item, add a subtotal item, enter the Gift Certificates or Gift Cards item to redeem with a negative amount.

 To create a new account to record your Future Liability:
  1. Select the QuickBooks Lists menu and the select Chart of Accounts.
  2. Click the Account button and then click New.
  3. Select the type as Other Current Liability and assign an appropriate name and number.
  4. Click OK.

To create a new account to record Donating Gift Certificates or Gift Cards:

  1. Select the Lists menu and then select Chart of Accounts.
  2. Click the Account button and then click New.
  3. Select the type as Expense and assign an appropriate name and number.
  4. Click OK.

To create an item to record Selling or Redeeming Gift Certificates or Gift Cards:

  1. Select the Lists menu and then select Items.
  2. Click the Item button and then click New.
  3. Select the type as Other Charge and enter an appropriate name and description.
  4. In the Account field, click the drop-down arrow and select the Other Current Liability account just created.
  5. Leave the Amount field as $0.00 and clear the Tax Code field.
  6. Click OK.

To create an item to record Donating Gift Certificates or Gift Cards:

  1. Select the Lists menu and then select items.
  2. Click the item button and then click New.
  3. Select the type as Other Charge and enter an appropriate name and description.
  4. In the Account field, click the drop-down arrow and select the Expense account that you just created.
  5. Leave the Amount field as $0.00 and clear the Tax Code field.
  6. Click OK.

To Sell Gift Certificates or Gift Cards, receive a payment and record a future Liability:

  1. Select the QuickBooks Customer menu and then select Enter Sales Receipts.
  2. In the customer name field, click the drop-down arrow and select the customer:job name.
  3. On the first line, enter the item to Sell or Redeem a Gift Certificate or Gift Card with a positive amount.
  4. Ensure the Deposit To field has the appropriate account.
  5. Track the Gift Certificate or Gift Card number in the Description field.
  6. Click Save and Close.

This Sales Receipt does the following:

  • Increases the Gift Certificate's or Gift Card's Other Current Liability account by the Gift Certificates or Gift Cards amount
  • Increases the deposit to account by the Gift Certificates or Gift Cards amount
  • Does not affect accounts receivable
  • Does not record the payment as income

To Donate a Gift Certificate or Gift Card, record the Expense to your company and record a Future Liability:

  1. Select the QuickBooks Customer menu and then select Enter Sales Receipts.
  2. In the customer name field, click the drop-down arrow and select the customer:job name.
  3. On the first line, enter the item to sell or redeem a gift certificate with a positive amount.
  4. On the second line, enter the item to Donate a Gift Certificate or Gift Card with a negative amount.
  5. Ensure the Deposit To field has the appropriate account.
  6. Track the gift certificate number in the Description field.
  7. Click Save and Close.

This Sales Receipt does the following:

  • Increases the Gift Certificate or Gift Card Other Current Liability account by the Gift Certificate or Gift Card amount.
  • Increases the Gift Certificate or Gift Cardv expense account by the Gift Certificate or Gift Card amount.
  • Does not affect accounts receivable.
  • Does not record the Gift Certificate or Gift Card as income.

To redeem a Gift Certificate or Gift Card, record the income to the company and relieve the Future Liability:

  1. Select the Customer menu and then select create Invoices.
  2. In the customer name field, click the drop-down arrow and select the customer: job name.
  3. Enter the sales items that the customer is buying.
  4. Enter a subtotal item.
  5. If the sales total (including sales tax) is greater than the Gift Certificate or Gift Card amount, enter the Gift Certificate or Gift Card item with the negative of the Gift Certificate or Gift Card amount.
  6. If the sales total (including sales tax) is less that the Gift Certificate or Gift Card amount, enter the Gift Certificate or Gift Card item with the negative of the sales amount.
  7. Click Save and Close.

This Invoice does the following:

  • Decreases the Gift Certificate or Gift Card Other Current Liability account.
  • Increases accounts receivable if the sales amount is greater than the Gift Certificate or Gift Card amount.
  • Records the sales items (and the amount of the Gift Certificate or Gift Card) as income.

If this solution does not resolve the issue, please review other available QuickBooks support options for additional guidance. You can also read and post messages relating to your issue on the QuickBooks Community forums.

Your opinion counts! Please use the voting and feedback buttons to help us build a better knowledge base.

KB ID# HOW12997
12/17/2014 8:05:35 PM
PPRDQSSWS401 9102 Pro 2013 e0816d