Tagging invoices for gift voucher sales

[thedrumdoctor]

We issue gift vouchers often purchased as presents to spend in our shop. I have followed the instructions about handling gift vouchers in the KB, but we have an extra step for tagging…

We are quite old-fashioned issuing paper receipts from invoice books with numbers. Every sale is recorded using an invoice book and we can trace all of our sales with invoice reference numbers in the Invoice Management area.We tag sales to our bank feeds or when it’s cash, to our petty cash account and when it’s online or instore via PDQ, to an ‘All Sales’ holding account.

Looking at the instructions for handling voucher sales, there appears to be no way of tagging invoices in the invoice management area. I can see the gift voucher sale once identified in the relevant receiving bank account, is transferred to the gift voucher sales account - thus it is tagged. But we tag the income to an invoice which means we can’t tag it twice! I can see the aim is to get a balance in the gift voucher account which can be tagged when gift vouchers are redeemed, but our use of an invoice in the initial gift voucher sale process seems to throw a spanner in the works. Is there a way around this?

[ian_roberts]

Ultimately what you’re aiming to do is reduce the recorded income by the value of gift vouchers sold and record the amount instead as a liability which will be settled when the vouchers are spent. The simplest way to do this would be to do what you’re doing now recording everything including gift voucher sales via an invoice, but then if you’ve sold any vouchers on a given number in the book then raise a partial credit note against the relevant QuickFile invoice for the total voucher value and “refund” from the gift voucher account.

This will have the right overall effect - the money you actually received in petty cash & PDQ includes the value of vouchers sold (minus any redeemed), but the sales total excludes them and the difference is “money out” from the gift voucher holding account.

[thedrumdoctor]

Brilliant, thanks! That makes sense and puts the pieces of the jigsaw together.