Gift cards: owed, not earned

A gift card sold is money you owe until it is spent.

Lines that sell a gift card are taken out of revenue, in the order and in the P&L, and listed as a liability. When a customer later pays with the card, that sale is revenue then. Cash ahead lists the gift cards still owed.

A gift card used as payment costs no processor fee.

Not answered? Write to hello@profflow.co — usually answered within a day.