Understanding Gift Card Accounting Terminology
Your Gift Card reports use several key terms to describe how voucher sales and redemptions affect your business reporting. Understanding what these values represent will help you reconcile your reports and track revenue correctly.
Revenue
Revenue refers to the value generated from selling specific goods or services.
In the context of vouchers, revenue typically applies when a voucher is tied to a specific product or experience with a fixed price, such as a dining experience or spa treatment. These purchases are treated as product sales and include the applicable VAT at the time of purchase.
Non-Revenue
Non-Revenue refers to funds that have been received but not yet redeemed for goods or services.
For example, when a customer purchases a gift card with a monetary value that can be used later, the value is considered a liability until it is redeemed. Once the card is used to purchase goods or services, the redeemed portion is recognised as revenue.
Experience Multi-Use Vouchers
A Multi-Use Voucher is a voucher that carries a monetary value and can be redeemed across multiple transactions or against any available product or service.
These vouchers are typically referred to as monetary vouchers and are considered non-revenue when purchased, since the business has not yet delivered the associated goods or services.
Experience Single-Use Vouchers
A Single-Use Voucher is designed for one specific product or experience with a fixed value.
Examples include vouchers for:
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Afternoon tea
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A dining experience
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A spa package
Since the product and value are defined at the time of purchase, these vouchers are treated as revenue when sold.
Credited
The Credited value shown in gift card reporting represents the total amount added to customer accounts within the selected date range.
This includes funds loaded onto gift cards or accounts but does not include single-use experience vouchers, since those are treated as revenue immediately when purchased.