Questions
- How is revenue recognized for gift cards within ROLLER?
- How is gift card revenue recognized if using the accrual accounting method?
- How are gift card funds reported in ROLLER?
Solution
When using the cash accounting method, gift card revenue is recognized at the time of purchase. But when following the accrual accounting method, gift card revenue is recognized upon purchasing items with the gift card balance.
- Upon purchase of the gift card, a Transaction entry is generated in the Revenue Recognition report and the funds received will move into Gift Card Deferred Revenue
- Once the gift card has been used to make a purchase, an adjustment entry is created to reflect the reduction in Gift Card Deferred Revenue. A new transaction entry is generated to reflect the purchase made.
- Once the purchased item has either been checked-in or has expired, the revenue will be recognized.