Gift Cards in Retail Sales

This document describes the suggested set up for the sale and redemption of Gift Cards. The procedure is to set up the Gift Card as a product that will be purchased by customers and will Credit a unique Gift Card Sales account in the GL. Gift Card will also be set up as a Payment Method that will deplete (Debit) the balance in that same GL account when the Gift Card is redeemed at the cash counter. At any point in time, the balance in that GL account represents un-redeemed Gift Cards. Note: If you want Gift Card redemptions to go to a different GL account, you control that by the GL accounts you assign in IN08.

The following list defines each program used and how it is set up for gift cards:

  • IM13 - Set up the Gift Card as a product in IM13 and assign a unique GL Code for Sales. You do not want this product to have an average cost otherwise a sale will impact Cost of Sales & Inventory in the GL and will impact the Inventory Evaluation.

  • CC00/IN/GL – Set up the GL interface for Gift Cards, assigning the Gift Card Sales account.

  • IN08 – Set up Payment Method = GIFT CARD. Type = Check (reported as Code 3 subtotals on RS44). Enter the Gift Card Sales account (or Redemption account) as the Override GL account in Folder 2. Note: Assigning Type = Check is a trick to separate Gift Cards from Cash subtotals on RS44.

  • RS41 – Use the Gift Card Product code when a customer buys gift cards. Gift Card Sales will be credited.

  • RS41 – Use the Gift Card Payment Method when a customer redeems a gift card. Gift Card Sales (or Gift Card Redemptions, per IN08) will be debited.

Here are two gift card redemption examples:

Transaction Overview Payment Method
in RS41		 RS44 Subtotal Codes
2 = Cash
3 = Check(Gift Card)
Customer purchases $25.00 of product.
Uses $20.00 Gift Card + Cash
No change		 Pmt 1: Gift Card 20.00
Pmt 2: Cash 5.00		 2 = 5.00
3 = 20.00
Customer purchases $25.00 of product.
Uses $20.00 Gift Card + $10.00 Cash
$5.00 change		 Pmt 1: Gift Card 20.00
Pmt 2: Cash 10.00
Change: 5.00		 2 = 5.00 (10.00 less change)
3 = 20.00

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