Getting a lot of inquiries regarding Gift Certificates is there a way of doing this on Reckon ??
Steve_6906920
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Steve, I created an Income account "Voucher" and a non inventory Item also entitled "Voucher" associated with the Income account in Reckon. When a Customer wants to purchase a Voucher, I treat that as a Sales Receipt/Tax Invoice. The printed receipt specifies the value of the Voucher and that it has been paid. The GST code for the Voucher is "FRE", a GST Free sale. Essentially the Voucher sale is a payment in advance for goods and or services. It is difficult to detail the accounting treatment of providing the goods or services without knowing whether you have a Point of Sale application and are tracking Inventory.2
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Steve, when I setup Vouchers for clients using Reckon POS or just Reckon Accounts, I create the item (can be non inventory, service or Other Charge) - and point it to an "other current liability" account called Gift Vouchers. Whilst you might say that your vouchers are not redeemable for Cash - its nice to be able to clearly see the balance of total vouchers out there waiting to be redeemed. I do not put any tax code on the vouchers - I view them as an advance payment on some future supply - therefore they should not be reported on the BAS.
You sell the vouchers to customers (it would be a good idea to do this sale with a customer name, plus an expiry date or at the least a Voucher number for future tracking) - this increases the balance of the Other Current Liability account - then when a customer comes in, purchases some items (which have the correct tax code on them and point to the appropriate income accounts), you then call up the Voucher item again (either through RA or through POS) and enter it as a negative value (you could again record the voucher number or name for tracking purposes) - this reduces the Other Current liability account and goes towards the balance owing for the sale - revenue is not duplicated and you are picking up the correct tax code and updated the balance outstanding for vouchers in your business.
Periodically you could run a report on this account - cross off the in/out values of used transactions, using the voucher number/name to help you do this - then for all the unused vouchers that are older than your expiry date - you could transfer these to revenue as they would be forfeited. There are a number of ways of doing this - you could generate a miscellaneous sale and pay for it with the voucher item, you could make a sale of an item called Expired Gift Vouchers (which would point to a revenue account) and pay for it with the Voucher item... in either case, unless the business sells all GST free items - the sale you make in order to redeem the expired voucher is a taxable sale and GST would then apply.
I hope this makes sense - for further clarification on handling unredeemed vouchers - you could refer to http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID201324/00001
I am not aware of the outlawing of vouchers that Kevin is referring to, I certainly think they are still quite common in businesses here in SA, and I get asked this question about setting up a process for handling Gift Vouchers quite often.
Cheers
Linda
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