Gift Card Sales

When your customers purchase a gift card, Shopify will create two transactions: a Sales transaction, which posts a debit to the Accounts Receivable account, and a credit to the Gift Card liability account you created.

The second transaction will debit the customer payment to your Undeposited Funds account and credit the Accounts Receivable account. The final result will be a posting to your bank account and a posting to your customer Gift Card account, which will be used when customers pay for purchases with the Gift Card.

Gift card sale transactions will be viewed in the Sales Register as Web Sales.

Applying Gift Cards to Sales

When your customer applies a Gift Card payment to a purchase, again, two transactions will be recorded in AccountEdge:

A Sales transaction posts a debit to the Accounts Receivable account.

And a second General Journal transaction, debiting the Gift Card account and crediting the A/R account, resolving the accounts receivable and using the gift card to pay for the sale.