Set up to track gift certificates
When you accept payment for a gift certificate, you accept the liability to
redeem the gift certificate some time in the future. To fulfill that obligation
and track the transaction in QuickBooks, you need to set up a liability account
and special items to use on a gift certificate invoice.
To do this task
Create an Other Current Liability account and name it something like
Create a new item of type "Other Charge" and name it something
like "Gift Cert."
When setting up the item:
Click the Account drop-down arrow and then click the other current liability account
you created in Step 1.
Leave the Amount field blank. You will fill in the amount at the time of
Make the item non-taxable.
Create a new item of type "Payment" and call it "Gift Cert
Pmt," for example.
When you sell a gift certificate
Using this method, the sale is recorded as a liability. The income will not
show in your income account until the gift certificate is redeemed.
Create a new invoice.
On the first line, enter the Gift Cert other charge item with the amount for
which the gift certificate was purchased.
This increases the Gift Certificates other current liability account by the
amount of the gift certificate.
On the second line, use the Gift Cert Pmt payment item to show the amount
you received in payment for the gift certificate.
This increases your bank account when you make your deposit. Accounts
receivable is not affected.
Track the gift certificate number in the invoice's Description field.
Note: The balance of the invoice should be zero.
Click Save & Close.
When the gift certificate is redeemed
You use an invoice to record the income from the customer's purchases
and the reduction in liability.
Create an invoice.
Use the appropriate sales items with positive amounts to record what the
customer purchased with the gift certificate.
Use the Gift Cert other charge item with a negative amount for the amount of
the gift certificate, but no more than the amount of the sale plus any
applicable sales tax.
If the amount of the sale was more than the amount of the gift
certificate, the customer may pay the balance.
If the amount of the sale was less than the amount of the gift
certificate, QuickBooks will continue to reflect the remaining amount
in the Gift Certificates liability account you created. You may want to issue a
new gift certificate to the customer outside of QuickBooks to help track the