Managing Gift Cards/Certificates in BMS Can I manage gift cards / gift certificates in BMS? The short answer is yes, but you’ll need to do a few quick steps before you’re able to start tracking revenue from gift cards/certificates in Accounts Receivable.
1. You may want to set up a new revenue account – you can use a miscellaneous revenue account, but you will probably wish to track it separately, so you can see how it is working for you. Checkbox Bank Account on this G/L code before you select save, as it will be used as a Payment Type later as well, and needs to be considered a “bank”, yes.
2. Create a unique catalog item under product code SC called GIFT CARD, or GIFT CERTIFICATE. Currently the default G/L account for SC is probably other income in most systems, so you will type in the new G/L revenue account for this one item. This will be used for cards you sell. You don’t want to pay commission on sales of these since they are basically an “exchange” of cash for credit. Make sure to keep cost and sell the same so it shows no profit when you sell them. If you have given them away, make sure they are on a job, and have a cost with no sell (Work qty of 1 with a unit cost of amount of card and sell quantity 1 and unit cost of zero.) Use your line comments to identify the card number or the name of the customer it is given to or sold to. Be sure to invoice it promptly.
3. Set up a new Payment Type for the gift card/certificate using OTHER for the Format Code and the newly created revenue account for the G/L as this money will not be deposited into a bank account. Since you have set it up as a bank account, it will allow you to reconcile the sale and the redemption like you do any of your other bank accounts. If any “expire”, or are never used you can make a journal posting later, to keep this “bank” balanced.
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