Gift card revenue is recognized at different points depending on whether your venue uses cash or accrual accounting. Knowing which point applies helps you explain why gift card sales and recognized revenue don't always match in the same reporting period.
ROLLER uses accrual accounting by default. To check your venue's method, go to Settings > Account > Venue settings and scroll to Reporting.
When is gift card revenue recognized?
Accounting method | When revenue is recognized |
|---|---|
Cash | When the guest buys the gift card |
Accrual | When the item bought with the gift card is redeemed at POS or expires |
Tax follows the same timing. Under cash accounting, tax is recorded when funds are received. Under accrual accounting, tax is recorded when revenue is recognized.
If you override the default 0% tax rate, tax is collected when the guest buys the gift card. If they later redeem it for a taxable item, tax is collected again on that item.
How do gift card funds move through the Revenue Recognition report?
Under accrual accounting, gift card value moves through three stages.
A guest buys a gift card. A Transaction entry appears in the Revenue Recognition report and the full value moves into Gift Card Deferred Revenue.
A guest uses the gift card to buy something. An Adjustment entry reduces Gift Card Deferred Revenue, and a new Transaction entry records the purchase.
The item bought with the gift card is redeemed at POS or expires. Revenue is recognized, based on that product's expiry rules.
If your venue uses cash accounting, Gift Card Deferred Revenue and the other accrual columns don't appear in this report.
What happens if a guest only spends part of a gift card?
Only the amount spent moves out of Gift Card Deferred Revenue. The rest stays there until it's used.
For example, a guest buys a $100 gift card, then later spends $60 on tickets. That $60 moves out of Gift Card Deferred Revenue and is recognized when the tickets are redeemed or expire. The remaining $40 stays in Gift Card Deferred Revenue.
What happens when a gift card expires with money left on it?
The unused balance stays in Gift Card Deferred Revenue. ROLLER doesn't move it to recognized revenue automatically, because gift card expiry and breakage rules vary by country and region.
Gift card expiry is not the same as item expiry. Revenue is recognized when the item bought with a gift card expires, not when the gift card itself expires.
To recognize unredeemed balances, follow your venue's accounting policy and local regulations, then use the process in How do I recognize funds from expired gift cards?