Gift certificates are not a sale until product changes hands. Tax forms ask you for the amount of product sold. Since no product has been sold yet, nothing needs to be recorded.
Preferred method:
- Nothing is done at the time of sale with the purchaser.
- At the time of redemption, record the Gift Certificate as a payment made on the recipient’s invoice.
We recommend handling gift certificates in this manner to avoid duplicating your sales data. If you were to create a sale for the Gift Certificate at the time it was paid and then entered a sale for the product when the recipient redeems it, you will be claiming the sales value twice. This increases your tax liability. By handling it as recommended, you will have all the tools in place to help you when the time comes to redeem the certificate, and your tax record will be accurate.
Alternate method:
- Right-click on the recipient from the appropriate list in Boulevard and select Account Balance.
- Select Payment.
- Complete the fields as indicated.
- When the recipient redeems the certificate (in part or full), just enter a new invoice. Do not enter a payment. The sale will deduct from the balance on the account.
If the buyer requests a receipt, follow these steps:
Create a New Invoice for the buyer.
- Click on the Note button then type a note indicating the invoice is for a gift certificate purchase. Include the recipient name, if known.
- Do not enter any items as being sold.
- Enter the amount of the gift certificate as a payment, selecting cash/check or credit card accordingly.
- If the buyer is also purchasing other products, make a separate invoice so that is isn’t confused with the Gift Certificate transaction. Print the receipt(s).
Once the payment is complete, to help you remember the transaction, we recommend adding a Call Note. You can do so by clicking on the Calls tab of the recipient’s profile and selecting New.
If the recipient is not yet a customer, don’t worry. Just find out his or her name and add to the Customer List. Find out more about tracking sales in Boulevard software by visiting our website.
