Coupons or gift certs

[WellmeierFarms]

Can anyone tell me how to enter data related to coupons or gift certs sold and redeemed? I can't seem to find info on this anywhere. Do I create an inventory item and if so should it be a stock item? Or should it go in my discount ledger? Also what if my company gives a customer a coupon or gift cert as a thankyou, how do I record the sale and redemption of it?

[Baytek]

Coupons or gift certs are liabilities to your company.

When a gift certificate is given to a customer:

Debit Inventory for gift certificate
Credit Gift certificate liability

When the gift certificate is redeemed:

Debit Gift certificate liability
Credit Inventory for gift certificate


For more information, email support@baytek.com.

Baytek
Authorized Peachtree Resource Center
California Colorado Nevada
www.baytek.com
800-487-3224

[WellmeierFarms]

I've been setting up as you recommended and I have a couple more questions.

I understand that by making the item an inventory item it allows me to give a customer a certificate/coupon from our business and that it allows internal tracking without using the receipt task.

However when a customer purchases one I am still a bit confused.

Under Maintain Inventory I entered an item as follows:

Item name : $25 Gift Cert
Price: $25:00
GL Sales Acct: Gift cert liability (same as "GL Cost of Sales Acct)
GL Inventory Acct: Inventory-gift cert
GL Cost of Sales Acct: Gift cert liability (same as "GL Sales Acct)
Last Unit Cost: $25.00

Should the "Last Unit of Cost" be $0.00?

Also upon selling a customer the gift certificate how do I allow a cash account called "Gift Cert Cash Acct" keep the monies seperate? If I use it as the deposit for money received do I have to manually transfer the money to "Regular Checking" after redeeming a certificate?
It is important to me to try to use a seperate cash account.

[Baytek]

1. Last Unit Cost is used to enter the cost of goods sold entry when you sell the gift certificate:

Since there is no cost involved in the sale of a gift certificate, then the last unit cost can be $0.00.

2. You can use a cash account to track the money received for gift certificates, but a general journal entry needs to be made to move the amount from the gift cert cash acct to the regular checking account (the account you deposited the money in).

Debit Regular Checking Account xxxx.xx
Credit gift cert. cash account xxxx.xx