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Apples521
November 14, 2023
Question

How to record and track purchased gift cards

  • November 14, 2023
  • 1 reply
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Our non-profit purchases grocery and gas gift cards that we give away to clients who come through our doors.  I'm thinking to track the balance of these, I can simply set them up as separate bank accounts?  I'd deposit funds to those Grocery Card and Gas Card bank accounts when we purchase more and then write a "check" from those accounts when we give them out to clients.  Does that sound correct?

 

What's the best practice for a check number in this case when we're not actually writing a check?  In the past I've used a check number format of MMMYYYY and been ok with duplicate check numbers in cases like this.  Volunteers would be recording these deposits and disbursements so I want to make it as easy and straightforward as possible while keeping a consistent format.

1 reply

K
Kevin_C
November 14, 2023

It's nice to see you here in the QuickBooks forum, Apples521. Allow me to share some insights about your concern about managing your gift cards in QuickBooks Online (QBO).

 

You're just doing great for setting up your cards as bank accounts. Then, the process of depositing funds when purchasing more cards and writing checks when distributing them sounds correct. But I'd still recommend collaborating with your accountant to ensure everything is recorded correctly.

 

Regarding your check numbers, you can just utilize what you previously used since you're not actually writing physical checks. You may consider adding prefixes like "GC" followed by a number sequence GCxxxx to indicate that you're writing those checks specifically for Gift Card transactions. You can also use a running number to avoid duplicate numbers, mainly if you distribute cards multiple times in the same month. 

 

Lastly, make sure to include additional details like the type of gift card (Gas or Grocery) in the Memo/Description section for reporting purposes.

 

I'm more than willing to help if you have any other concerns with your account. I'll ensure your needs are taken care of. Have a great day ahead!

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