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NS86

Gift Cards

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In previous years we have given turkeys to all our employees at thanksgiving time. This year I thought we would give $15 walmart gift cards instead because some of the employees never used their turkeys and we want to do something everyone can use. I know these gift cards are taxable but I don't know how to do it in businessworks. I will probably pay for the gift cards with a check. I am guessing I would have to use fringe benefits in the payroll module but I am not sure. Any help would be most appreciated. I am using Businessworks 2011

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    verified answer

    Typically you will handle gift cards the same way as bonus checks. Please refer to articles 18656 - How to process bonus checks and 18032 - How to gross up a net value check.

  • 0 in reply to Janice Carnarvon
    I have entered the gifts cards as suggested in article 18656 and grossed up the value. I printed the checks on paper and will hand out the gift cards. We will be purchasing the gift cards with a credit card. How do I enter the payment for the gift cards without creating a double entry?
  • 0 in reply to NS86
    SUGGESTED
    You can enter an instant check in Cash Management and check with your accountant or CPA for the distribution account. Alternatively you can set up a vendor account in Accounts Payable for the vendor you are purchasing the credit cards from then, enter the invoice distributing to the GL account advised by accountant or CPA. Then process a vendor check. If you need additional assistance, please call 800-445-5700 to speak with a Customer Support Analyst.
    Thank you,
    Janice
  • 0 in reply to Janice Carnarvon
    That will create a double entry though. I used method 2 in article 18656 which creates an other pay in payroll for the gift card. This other pay account debits to an expense account. When I enter the payment for the gift cards in AP this creates another debit to an expense account. I think I have to reverse the other pay in payroll with a deduction.

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