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OCR Birthday Gift Certificate

OCR Birthday Gift Certificate

Aug 6th, 2022

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Simple guide on how to OCR Birthday Gift Certificate

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How to OCR Birthday Gift Certificate

4.8 out of 5

46 votes

In this tutorial, Naomi, the Happy Bookkeeper, explains how to enter an invoice in QuickBooks when a client redeems a promotional gift certificate. She distinguishes between promotional gift certificates and regular gift certificates. For example, when a restaurant sells a $50 gift certificate as a gift, it is recorded in the bookkeeping at the time of sale. This increases both cash and the liability for gift cards. There's no HST charged at the time of gift card sale; HST applies only when services are provided. Once the gift certificate is redeemed, it serves as a form of payment, which is also exempt from HST.

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