Gift Certificates / Cards

Selling gift certificates to a customer and redeeming the certificate later. If desired, you can easily track gift certificates within Point-of-Rental and on your Profit and Loss Statement. Gift certificates should be numbered/serialized to be tracked when redeemed.

Topics included in this article

• Category Setup

• Gift Certificate Item Setup

  • Creating Gift Certificates Items (without Purchase Orders)

  • Creating Gift Certificate Items with Purchase Orders

• Selling Gift Certificates

• Redeeming a Gift Certificate

• Accounting Entries

Category Setup

1. Follow the below path for our Product:
   
   1. Expert: Program Menu - #9 Configuration> Item Configurations > Item Categories. 
   2. Elite: Configuration gear > App Configurations > Item Configurations > Item Categories.
      
      
2. Press Add to create a new category called Gift Certificates if one does not already exist.
   
   
   
3. Enter your G/L # for Gift Certificates if you want to track them on your P & L (generally a liability account)
   

Gift Certificate Item Setup

This section will walk you through creating a Gift Certificate Sales - Header item.

1. Follow the below path for your product:
   1. Expert: Program Menu - #6 File Maintenance > Item File > Add new Item.
   2. Elite: Configuration gear > File Maintenance > Item File > Add new item.
       
2. Enter the item Key as "GIFT CERT"
   
   
   
3. Enter the item Name as ‘Gift Certificate’
   
    
4. Leave the Qty at 0. 
   
    
5. Select the Item Type ‘Sales-Header’. 
   
    
6. Right below, select the "Gift Certifcate" category you created in the section above. 
   
    
7. If there are multiple stores, set the Home Location and Current Location to ‘000’. This allows any store to sell or redeem. If not, leave the location 001.
   
   
   
8. Set the Sell Price to 0.00 or the sales price of your gift card. 
   
   
   
9. Go to the Option tab and check the "Non-Taxable and Non-Discountable" box.
   
   
   
10. Press OK to save.

Creating gift certificate items (without Purchase Orders)

1.  You can manually create each item record by going into the Gift Certificate Sales - Header record, clicking Functions, and then selecting Create Serialized.
   
   
   
2. You could use two Item Types for the individual gift certificates. Choose the one that best suits your needs.
   

   1. Sales-Normal:  If you choose to offer pre-determined gift certificate amounts, you can create unique item keys to help distinguish them. For example, set the quantity to 0 and the Sell Price to 50.00. For 50.00 gift certificates, enter a Key of GIFTCERT50 or GIFTCERT100 for $100 gift certificates. Ensure you match the selling price to the key. 

   2. Sales-Miscellaneous: For this type, when adding the gift certificate, you will have free range to type in the amount of the gift certificate. For example, you can set a quantity of 0 and a Sell Price of 0. 

3. All the set-up work for gift certificates is now complete.

ℹ️Important! 

•  Ensure the unit number in the key matches the number printed on the gift certificate.

Creating Gift Certificate Items with Purchase Orders

Write a purchase order for the gift certificate header item. When you receive it, ensure the unit number in the Key matches the gift certificate number printed on it. If not, you will have to un-receive all the items and then void the PO. This is simply a shortcut to quickly create many items and avoid manually creating them.

Selling Gift Certificates

 When a customer wants to purchase a gift certificate, write a contract for it just like you would for any other resale item. Make sure you select the serialized item and enter the quantity of gift certificates. If you created the serialized item as Sales - Miscellaneous, you'll need to enter the amount for the gift certificate.

Redeeming a Gift Certificate

1. Open the contract. Modify the contract. 
   
   
   
2. Select the Add Item button (bottom right corner of the contract).
   
   
3. Search for the Check the Serialized Items box and the Zero Qty box, to make sure all serialized items are shown. Add the same serialized gift certificate to the contract. 
   
   
   
4. Click OK.
    
5. You'll receive this prompt, press Yes.
   
    
6. When asked to enter a quantity, enter "N". This will change the qty to a negative number.
   
   
   
7. Enter the negative quantity of 1, "-1".
   
    
8. You will notice the value of the contract has been lowered by the amount of the gift certificate.
   

Accounting Entries

 Assuming you set up your G/L accounts correctly in the Item Category, when a gift certificate is sold, the income will post to a liability account rather than an income account. When a gift certificate is redeemed, it will create a negative posting to the same liability account, and income will post based on the items rented or purchased.