Gift certificates can be handled in a couple of different methods depending on whether the recipient is known or unknown at the time of the purchase.
To begin, first decide whether you will track the number of certificates sold for each denomination (Image 1), or whether you want to create just one Item that does not track inventory quantities (Image 2). The only difference between the two options is whether the No Inventory option is selected, and a Retail/Cost is specified when the item is created.
Note: With either option, the Gift Certificate field needs to be checked and the Taxable field must be left un-checked.
Please Note: You'll want to check the laws in your area (Office of the Attorney General in your state & Federal Trade Commission) before adding an expiration date to gift certificates or gift cards, and how to handle inactivity.
Selling a Gift Certificate
- Add the gift certificate to the purchaser's invoice.
- If applicable based on Image 1, enter the cost of the certificate under the Price column.
- In the Memo field, enter GC: Recipient's Name (or if unknown specify GC: Unknown Recipient).
- Finish the invoice as usual entering any discounts, being given and payment method, etc.
- For additional tracking, add the invoice number to the physical gift certificate as reference.
- Optional Step: To display the gift certificate under the recipient's product history instead of the purchaser's product history, enter the recipient's name under the Product is For column to link the certificate to their profile.
- If the redemption amount of the gift certificate is greater than the actual amount paid (Example customer paid $75, gift certificate can be redeemed for $100), enter the redemption amount on the physical gift certificate being given to the recipient.
Gift Certificate Redemption
- Add the items to the invoice.
- Enter the gift certificate amount under the Gift Certificate payment method.
- Under the Memo field add a short note indicating that a gift certificate was redeemed along with the original invoice number for further cross reference tracking.
- If the certificate is not being fully used, write the remaining balance on the actual certificate, and click the Note button on the invoice form to specify the remaining balance.
Note: If the recipient was known at the time the certificate was issued, and linked the gift certificate to their profile using the Product is For field, they will have the certificate listed under the Products tab of their profile.
Gift Certificate Transactions Report
To view a listing of gift certificates sold and redeem from Shortcuts click on Reports (or under the Business Tools menu, select Reports).
- In the Report section under Sales, select Gift Certificate Transactions.
- Click to open the Date Range form.
- From the Start and End drop-down menus or Quick Dates menu, choose a period of time, then click OK to print or preview.
- From the Preview tool bar click to print, or to choose an export format such as pdf.
For additional information on handling gift certificates, see Webinar: Aspects of Invoicing.