Redeeming paper gift certificates that weren't sold on square/Handwritten gift certificates

[ricksgolfworld]

I just stared using square and just ordered their gift cards, but I am wondering how to redeem previously sold paper certifictaes.  Not sure if correct, but his is what I've come up with:

Total for item with tax is $54

Customer has previously purchased paper certificate for $50

Create Invoice

Payment schedule

make payment-have them make a payment for $4

make payment-other gift card or certificate for the $50 balance

ran daily report sales seem correct (have read about double counting but not reaally familiar)

Thoughts?

report shows:

gross sales 54

total collected 54

cash $4

other $50

[ryanwanner · Accepted solution]

Hello @ricksgolfworld !

I think you're on the right path. As long as you separate the certificate redemptions at checkout it'll be easy to manage.

Where the sticking point will be is how it looks in your accounting software, and this will go back to how you recorded the sale of the certificate in the first place. Gift Card and Certificate sales need to be accounted for as an increase in a liability on your books, not an actual sale. Only when the GC comes back in should you record the transaction as a sale. You may need to get an accountant in the loop about the best way to record the redemptions if you have already recorded the purchase a different way.

Here's a quick Howto I put together last year talking about GC best practices. I hope it helps you out.

[ricksgolfworld]

Just tracked them manually and were not counted as a sale until redeemed.  Used Quickbooks point of sale prior and it was terrible at running reports.  Now using square and QB online for accounting.  Still lot of paper ones out there, but assume with new gift cards from square that it will track selling the cards/liability and when the redeemed?

[ryanwanner]

@ricksgolfworld  Yes, Gift Card sales are reported on a separate line from your daily sales. Really easy to keep track of them, and the funds are transferred that day. When they're redeemed, it reports as a regular sale on Square's reports: you just won't have any funds transferred.

[JJ_]

Thank you for coming on clutch to help @ricksgolfworld, @ryanwanner ✨ I appreciate the work here!