Gift Card / Certificate Posting

This article talks about how journal entries are posted for gift card/ certificate transactions in Connected Business.

Since a gift card/certificate is not considered as a sales item, a separate account code is created to monitor all gift card/certificate–related transactions in Connected Business.

This feature is only available in Connected Business v14 and higher.

 

 

Purchased Gift Card / Certificate Entry

When a gift card is purchased, an invoice journal will be created showing the amount paid for the gift card as debit with the account code Accounts Receivable and the cash value of the gift card as a credit with the account code Gift Card/Certificate.

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Discounted Gift Card / Certificate Entry

When a gift card /certificate is purchased at a discounted price, an invoice journal entry will be created. In the journal, the discounted amount with the account code Accounts Receivable and the amount discounted with the discount account code for the gift card will be tagged as debits while the cash value for the gift card will be tagged as credit with the gift card account code.

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Redeemed Gift Card / Certificate Entry

When a gift card/certificate is redeemed, a customer allocation journal will be created, indicating the amount paid for the item as credit (with the account code Accounts Receivable) and the amount allocated from the gift card as debit (with the account code Gift Card/Certificate).

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Fully Allocated Discounted Gift Card / Certificate Entry

When a discounted gift card/certificate is partially allocated, the journal entry will be the same as the entries posted for regular invoice transactions.

However, when it is fully allocated, a gift card/certificate discount account code and a sales discount account code will be added to balance the customer allocation journal entry. In the journal entry, the amount paid for the invoice and the gift card/certificate discount amount will be shown as credit ; the allocated gift card/certificate value and the sales discount amount (which is added to reverse the gift card/certificate discount) will be shown as debits.

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Voided Gift Card / Certificate Entry

When the invoice for a gift card/certificate (that is not activated yet) is voided, a credit memo journal will be created to reverse the original invoice. You can find the journal from Accounting > Journal > Find Journal < Unposted Journals tab.

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Deallocated Gift Card / Certificate Entry

In cases where a redeemed gift card is deallocated, a customer deallocation journal entry will be created to reverse the original customer allocation journal entry. In the journal entry, the deallocated amount will be shown as a debit and the amount deallocated from the gift card will be shown as a credit.

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  • Wednesday, 29 January 2014