Gift Cards / Vouchers & Loyalty Cards
Gift Cards / Vouchers
By gift cards or vouchers we mean where a customer purchases a voucher or card with a value to spend with you, usually something like £5, £10, £20 etc. People often use these types of vouchers as gifts to others.
Brightpearl doesn't currently support gift card or voucher schemes, but if this is something you are already doing, or thinking about doing, here's how we suggest you can account for the scheme in Brightpearl when you're running it with a third party provider:
1. Setting up
Create nominal codes
In order to account for your gift cards effectively, we suggest you set up the following nominal codes. You'll find out how to use them later:
Sales account: "Gift card sales"
Current liability account: "Gift card creditors"
Sales account: "Gift card redemptions"
For each gift card or voucher value you sell create a separate non-stock tracked product record. In the prices tab select the sales account as your "Gift card sales" nominal code, and in the UK the VAT is recorded as soon as the voucher is sold, so ensure you select your tax code too.
2. Selling a gift card/voucher
When selling a voucher to a customer, create a sale as you would for any other product, whether you're entering it directly in backoffice or through EPOS. If the voucher or code has a unique reference you may want to record this on the sale in Brightpearl; in backoffice you can enter it in the customer reference field or add it onto the line description. In EPOS you can use the sale reference (if price list selection is on) or add a miscellaneous item with no price.
This records the sale of the voucher and records the tax, however, you should not yet recognise this as revenue until the goods are purchased using the voucher, so you should create an accounting adjustment to move it out of the sales account and into the liability account "Gift card creditors". You don't need to do this on a sale-by-sale basis, you can do a bulk adjustment for all voucher sales for a period of time.
3. Gift card / voucher redemption
When the customer buys goods using the gift card or voucher you should create the sale in Brightpearl as normal. But rather than taking payment against the sale you should manually add a line item to the sale for the redemption of the voucher. Enter a description, perhaps with the card or voucher reference if it has one. The voucher redemption item should post to the same sales nominal code as the actual product being purchased, and with the same tax code as the product being purchased. Enter a negative amount to reduce the outstanding balance to pay on the sale. Ensure the balance is zero unless you are taking (or giving!) any money.
(In this example the customer has an additional £3.99 to pay, this can be taken as a normal payment when you close and pay the sale)
Once goods have been purchased with the voucher you are able to recognise the revenue from the original voucher sale. To do this you will need to enter a journal to move the amount out of the "Gift card creditors" liability account and into the "Gift card redemptions" sale account. This can also be done as a bulk adjustment for all vouchers redeemed over a period of time, rather than on a sale-by-sale basis.
When vouchers have been sold and not redeemed within the valid date range you can recognise the net value as revenue. To do this enter a journal to move the value from the "Gift card creditors" (debit) and into a sales account (credit), perhaps create another sales nominal code "Expired vouchers".
The figure on the "Gift card creditors" nominal code should be the net of the value that your management company have on their figures.