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How to Reconcile Gift Cards in Your Daily POS Report

This article explains how gift card sales appear in Clover reporting and how they should be treated when the value is later redeemed for goods or services. Understanding this helps with accurate revenue reconciliation.

Before You Begin

  • You'll need access to your Clover dashboard reports.
  • Familiarity with non-revenue accounting principles helps interpret these reports.

Gift Card Sales in Clover Reports

When a gift card is sold through Clover POS (or any POS), it's automatically recorded as a non-revenue sale in your End of Day reporting.

Non-revenue sales are transactions where payment is taken in advance of delivering goods or services. At the time of sale, the gift card does not count toward net revenue.

VAT Treatment

VAT is not collected when the gift card is sold. Instead, VAT is applied when the gift card is redeemed and used to purchase goods or services at a later date.

How It Appears in Reports

In Clover's Payments Report:

  • A gift card sale (e.g. €50.00) appears as a non-revenue item.
  • Gross Revenue includes the gift card amount.
  • Net Revenue excludes the gift card amount.

For example: if Gross Revenue is €1,896.27 and a €50.00 gift card is sold, Net Revenue would be €1,846.27. The €50.00 difference represents the non-revenue gift card sale.

Accounting Treatment

Gift card sales are considered an outstanding liability, not revenue. They only become revenue when:

  • The gift card is redeemed, and
  • The value is exchanged for goods or services.

Unredeemed Gift Cards

In some cases, a gift card may never be redeemed. The treatment of long-standing unredeemed gift card balances is a business decision. We recommend you consult your accountant or financial advisor for guidance on when and how to recognise this as revenue.

Tips & Best Practices

  • Reconcile daily: Daily checks make discrepancies easy to catch.

  • Track liability separately: Outstanding gift card balances should be tracked as a liability on your balance sheet.

  • Consult your accountant: For unredeemed-balance treatment, follow professional accounting advice.

  • Need help? For reporting queries, contact support@facilipay.io.