Gift Cards Journal Entry

Overview

Blue Onion's Gift Card Journal Entry provides a detailed journal entry for all gift card activities, including issuance, redemptions, and expirations, as well as categorizations of the difference gift card sources.

Sources of Gift Card Liabilities

The journal entry includes several sources, such as Shopify, Catch Rewards, Complimentary, and Rise.ai gift cards. If these sources are relevant to your organization, they will automatically populate in the journal entry:

1. Catch Rewards:
   • Transaction Entry: An increase in gift card liability is recorded with a credit to the liability account and a debit to refund expense. This reflects the issuance of gift card liabilities by Catch as a customer accommodation.
2. Complimentary Gift Cards:
   • Issued by Internal Teams: These are gift cards issued by customer service, marketing, or other internal teams without compensation received in return.
   • Transaction Entry: An increase in gift card liability is recorded with a corresponding debit to a gift card expense account.
   • Subledger Detail: Click-through functionality allows viewing detailed subledger information, including notes and categorizations (e.g., replacement expense, service expense, and marketing expense for influencers).
3. Rise:
   • Similar Treatment: The transactions for Rise follow a similar pattern to Complimentary gift cards.

Gift Card Expirations:

• Blue Onion will automatically track any gift cards that expired within the period and provide a debit to remove the gift cards from the gift card liability and a credit to income. A note that most jurisdictions no longer allow for the expiration of gift cards, so this journal entry may just be used to surface expiration dates that need to be extended, rather than true revenue.