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userqb1
February 1, 2023
Question

How to record a donation in the form of a Gift Certificate?

  • February 1, 2023
  • 1 reply
  • 0 views

How to record a donation in the form of a Gift Certificate? The gift certificate is for a service and does not cost us anything.

  1.  What chart of accounts would need to be created​ to record the donation?
  2. What account would need to be created for when the customer redeems the gift certificate for the service? ​

Any help would be greatly appreciated.

1 reply

Rustler
Rustler
February 2, 2023

Technically only a corporation can donate, Sole Proprietors and partnerships donate but the donation is a personal one and is accounted for on the schedule A when filing taxes, but ...

Create a liability account called Gift Cards

Create a service item called giftcard and link it to the gift cards liability account
Use a customer credit, use the giftcard item and enter the amount of the service, save

When the customer uses the gift card list the services/items being purchased, on the last line use the giftcard item, set the qty to negative one, and enter the amount, the customer pays the balance if any.

U
userqb1Author
February 2, 2023

Thank you sir but what you're saying is not correct not only corporations can make donations. And I'm referring to a gift certificate if you kindly read above not a gift card.

 

 

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