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Will Scharvogel

Gift Cards and Accounting

Question

Hello,

 

We are a high volume independant cafe and gift cards are major part of our daily business. A few pre-sales questions on gift cards.

 

How does Lavu categorize the sale of a gift card in its daily report functions ?

 

How does Lavu categorize the redemption of a gift card in its daily report functions?

 

Can you sell multiple gift cards in one transaction on lavu (using heartland as integrated processor)?

 

Thanks.

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2 answers to this question

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Hello Will, 

 

Thank you for posting on our forums and for researching Lavu iPad POS. To anser a couple of your questions: 

 

A gift card would be designated a redemption during the checkout process. The actual "Sale" would go through when a gift card is purchased and loaded. You would be able to load up multiple cards as a sale. 

 

I hope this was helpful. 

David Miles 

Lavu 

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Will, Gift Cards are a sizable part of our business too, especially since we give a lot of them away to charities, etc.

 

When selling a gift card, lavu treats it as a product.  It's like selling a hamburger, coffee, or tube of toothpaste.  On the end of day reports, it lists the sale of gift cards separately from other sales, which is what you want.  The only hitch is that a few versions ago, Lavu changed the way the card got loaded.  It used to be swiped and loaded at the time you added it to the order.  Now it is swiped and loaded after payment has been taken in the checkout process.  I haven't tried selling multiple cards on one transaction, but I'm guessing it may not be possible now what with the loading after the checkout.

 

When redeeming gift cards, Lavu treats it as a payment method and it shows on all your reports as a separate payment method, just like credit cards and cash.  So it's doing the right thing.

 

On the accounting side, of course, you have to treat sales and redemptions differently according to whether you are on cash or accrual accounting methods, so Lavu makes no effort to track the pool of gift cards as a liability because every company will handle that differently.  But Lavu handles the sales and redemptions in a clear way so you can do that yourself.

 

-Jim

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