Overview
- Map Gift Card from the Payment Types section to the sales account in the Squarespace accounting integration.
How it works
Gift Card sales cannot be identified and distinguished separately from normal product sales (ordinarily a Gift Card sale would be mapped to a liability account to reflect the business’ future liability to honour the gift card amount). As a result, Gift Card sales are synced to the relevant mapped Sales account (e.g. a Sales Revenue account). It is therefore recommended to also map Gift Card Payments (Gift Card Redemptions) to the same account that Gift Card sales are mapped to, in order to prevent an overstatement of sales.
How to map gift card sales
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Sign into the Amaka dashboard.
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On the left navigation panel, click Features and make sure Advanced Setup is selected.
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Click Save + Continue and then click on Payment Types.
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Click the dropdown across Gift Card and select the same sales account used in Sales transactions.
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Click Save + Continue.
Accounting entries
When Gift Card is sold, the accounting entries will reflect:
- Increase in sales – Gift Card is being recognised as a normal product sale
- Increase in payment clearing – recorded against the relevant clearing account (e.g. Stripe Payment Clearing)
When Gift Card is redeemed, the accounting entries will reflect:
- Increase in sales – represents the actual products sold and paid using Gift Card
- Decrease in sales – represents the gift card payment when mapped to the sales account. This effectively cancels the first sales recorded when the Gift Card was sold to prevent the overstatement of sales.