Gift certificates represent money that customers have paid to you in advance to receive products or services later.

Set up a gift certificate account

Record a gift certificate sale

Record a gift certificate payment

Set up a gift certificate account

      1. On the left-side menu, select Accounting > Chart of Accounts.
      2. Click Add a New Account in the top right corner.
      3. In the Account Type drop-down, select Customer Prepayments and Customer Credits.
      4. Enter a name in the Account Name field that makes sense for your business (for example Gift Certificate Sales).
      5. Click Save.

Record a gift certificate sale

When you receive payment for a gift certificate, follow the steps below to record it.

      1. On the left-side menu, click Accounting > Transactions.
      2. Click Add income to create a new transaction, or locate the imported transaction, click the dropdown arrow to the right, and select Edit more details.
      3. Enter the date and amount.
      4. In the Account drop-down, select the account the money was received into.
      5. In the Category drop-down, select Gift Certificate Sales.
      6. To attach this transaction to a specific customer, click Add customer, then select a customer from the drop-down menu.
      7. Click Save.

Record a gift certificate payment

When customers cash in their gift certificate, you can reflect this as income by applying it against an invoice or categorizing an income transaction to an appropriate account.

Apply the gift certificate against an existing invoice

      1. On the left-side menu, select Sales > Invoices.
      2. Find the invoice you want to apply the gift certificate to, then click Record payment.
      3. In the pop-up box, edit the date and amount if necessary.
      4. In the Method drop-down, choose Other payment method.
      5. In the Account drop-down, choose the Gift Certificate Sales account.
      6. Click Save.

Apply the gift certificate to a sale without an invoice

      1. On the left-side menu, select Accounting > Transactions.
      2. Click Add income to create a new transaction.
      3. Select a date and enter the amount.
      4. In the Account drop-down, select the Gift Certificate Sales account.
      5. In the Category drop-down, select an appropriate income account.
      6. Click Save.