gift card accounting

Please let me know if this is right: the product 'gift card' is an ersatz A/R and could be linked as such to A/R in quickbooks. When the gift card 'product' is redeemed, it's returned to stock (thereby taking it out of the QB A/R) so the actual sale (what the card is redeemed for) goes into the right sales category.

Thanks,
Rob

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8 comments
  • Hmmm, it sounds like you know alot more about accounting than I do!

    I'm not sure if the way RGP tracks gift cards is done in proper accounting fashion, but it does seem to work :) I honestly don't know what an Ersatz A/R account is.

    I just have the gift card RGP revenue account linked to a Gift Card account in QB - I don't think it is an AR account. When gift cards are sold, the balance in that account is increased (or decreased, I can never keep that straight) and when they are redeemed the opposite happens.

    If you can't get RGP to communicate to an A/R account (perhaps because RGP doesn't pass all the required information), then have the transfer go to a QB "Gift Card Transfer" account and then once a month make a journal entry in QB that transfers the balance to the appropriate account in QB.

    If you do a Z-Out in RGP for a date range, it shows the total of the gift cards sold/redeemed as an additional item.

    Andy

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  • Is it an easy modification to have the gift card 'bar code' use letters as well as numbers? This would be a great help in the deposit-on-account workaround. The deposit taker could use a client's last name or the deposit type (birthday party, port. wall, &c.)along with the date&time instead of us coming up with a easier-to-mess-up number code for each deposit type.

    Thanks,
    Rob

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  • Hi Rob,

    I spoke with Josh about this. The reason it is limited to numbers is to prevent mistakes when staff members key-in (rather than swipe) cards. When I allowed non-digits there were LOTS more mistakes when processing real gift cards.

    So unfortunately I won't be able to make this change as the restriction exists for a reason.

    Andy

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  • In my tests, I've been able to use both letters and numbers- have you changed this restriction since this post went up?

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  • I added a setting last year for it to allow alphanumeric. It defaults to unchecked, but perhaps you or someone checked it? Regardless, it is supported now if that setting is checked :)

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  • Hi,

    I've got the auditors in this week... is there a way of finding out what our gift card balances were on 01/01/2015? I've been trying to think of what combinations of reports would be able to produce this information, but not come up with anything.

    Any ideas?

    Thanks, Audrey

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  • Run a z-out from the beginning of time through 01/01/2015..... that will show the total gift cards sold vs redeemed.

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  • That did the job! Thank you.

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