Setting up Gift Card Accounts
We are giving away gift cards to individuals for help with advertising etc. I am trying to figure out how to set this up in the chart of accounts but am confused as to what offsets the gift card liability. Once the gift card is redeemed I would make an entry hitting Gift card liability and advertising expense etc, but once we hand out a gift card, what would be the correct way to account for it? We use Macola as our ERP system so its not as intuitive as other accounting softwares. Any help would be appreciated.