Gift Certificates

I went to the same accounting class as Jose but I would look at it like this:

Gift Certificate Purchase
- use one of the UD files and customize the screen to record Date of
Purchase, Amount, and Date of Expiration.
- debit cash and credit some liability account.

Gift Certificate Redemption
- Add a credit to the customer redeeming the Certificate
- Mark the certificate as redeemed and cross reference the CM id

Down the road:
- create a report for expired certificates so the liability can be relieved
- Enter purchases on a sales order and add custom code to create the
UD record when payment is received
- create a report to reconcile outstanding certificates with the
liability account

Mark W.

> --- In vantage@yahoogroups.com, Linda Lowney <llowney@...> wrote:
> >
> > How about creating a "bank" account that points to the liability
> > account?
> >
> > When you give out the gift cert you make a bank entry that will record
> > the "credit" side of the transaction
> >
> > When the gift cert is redeemed then you can "deposit" it like any other
> > customer payment which will record the "debit" side of the transaction
> >
> > At the end of each month you can reconcile the account just like a bank
> > account
> >
> > Regards,
> > Linda
> >
> > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
> > Of mattcald_73
> > Sent: May-31-12 9:35 AM
> > To: vantage@yahoogroups.com
> > Subject: [Vantage] Re: Gift Certificates
> >
> >
> >
> > Jose,
> >
> > Thanks for the reply!
> >
> > It is that 'holding' account that we are struggling with!
> >
> > For the sale of the certificate, we are going to create a non-quantity
> > bearing part and have the GL code go to a liability. That way when it is
> > sold, the liability is recorded. However, we do not know how to
> > 'automatically' match and reduce that liability when the gift certificate is
> > redeemed. (Our website is going to track the serial numbers associated with
> > the gift certificates and when they are redeemed, so we are just trying to
> > figure out how to handle the tech side in E9.) We thought about creating a
> > credit memo at the point of sale of the gift certificate, but it will cause
> > a misrepresentation of the true AR balance.
> >
> > --- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, Jose
> > Gomez <jose@> wrote:
> > >
> > > Well from the Financial side of things you really don't want to do it
> > > that
> > > way. From a costing / profit etc side is kinda nightmareish
> > >
> > > If you sell the certificate as a SO, then you are selling a "Part" at
> > > 100%
> > > Profit (which is technically great) since there are no costs
> > > associated in
> > > the system with said certificate.
> > > At that point, say you sell a certificate for $100 your system
> > > registers
> > > that you made 100$
> > >
> > > Now when the customer comes back and orders 100 worth of parts, and
> > > they
> > > give you the certificate and you enter it into your system (as cash,
> > > check,
> > > or other payment form) the sytem will expect another 100 dollars to
> > > eventualy clear but that has already happened.
> > > That's 200 dollars total out of a 100 dollar certificate.
> > >
> > > The best way you can do this, is to take the money for the value of
> > > the
> > > certificate and apply it to a customer's account as credit. That way
> > > your
> > > system will recognize that money as not as an asset but more a
> > > liability
> > > until the order is sold and you pay off the amount with the value from
> > > the
> > > credit on the account.
> > >
> > > Sorry that may not be 100% correct, I should have preceded this with I
> > > am
> > > not an accounting guy, but I know enough to know that it can cause a
> > > problem if not done correctly.
> > > If you want to let Customer X buy the certificate and Customer Y use
> > > it,
> > > you can simply enter the sale of the certificate in a Custom UD
> > > screen,
> > > which will print out a certificate with a custom BAQ Report and a
> > > system
> > > GUID to uniquely identify this certificate.
> > > You take the 100 dollars and don't count it towards profits just yet,
> > > simply put it aside? maybe in a holding account? When Customer Y comes
> > > back
> > > with the certificate to make a purchase, you take the certificate and
> > > the
> > > money out of the "holding" account , into your regular AR. Granted I
> > > am not
> > > too sure how this "holding" account thing would work in terms of
> > > finance
> > > within Epicor.
> > >
> > > *Jose C Gomez*
> > > *Software Engineer*
> > > *
> > > *
> > > *checkout my new blog <http://www.usdoingstuff.com> *
> > > *
> > > *T: 904.469.1524 mobile
> > > E: jose@
> > > http://www.josecgomez.com
> > > <http://www.linkedin.com/in/josecgomez>
> > > <http://www.facebook.com/josegomez>
> > > <http://www.google.com/profiles/jose.gomez>
> > > <http://www.twitter.com/joc85>
> > > <http://www.josecgomez.com/professional-resume/>
> > > <http://www.josecgomez.com/feed/>
> > > <http://www.usdoingstuff.com>
> > >
> > > *Quis custodiet ipsos custodes?*
> > >
> > >
> > >
> > > On Wed, May 30, 2012 at 9:14 PM, Paul Morgan <paul.morgan@> wrote:
> > >
> > > > **
> > > >
> > > >
> > > >
> > > >
> > > > --- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>,
> > > > "mattcald_73" <matt@> wrote:
> > > > >
> > > > > We are looking at offering Gift Certificates through our website.
> > > > > The
> > > > gift certificate will be purchased as an order, and then when the
> > > > gift cert
> > > > is used, it think should be treated as a payment. We are not quite
> > > > sure how
> > > > to approach it. Is anyone else using gift certificates? If so, what
> > > > process
> > > > are you using to redeem them within Epicor?
> > > > >
> > > > > --Matt
> > > > >
> > > >
> > > > An option to look at.....you could use serial numbers and some
> > > > custom
> > > > coding to ensure its not used again once redeemed, ie user define
> > > > fields in
> > > > the serial number file. The serial number file is keyed by part and
> > > > serial
> > > > number so if you have only one type of gift certificate (ie part)
> > > > then this
> > > > will prevent reuse of the same serial number.
> > > >
> > > >
> > > >
> > >
> > >
> > > [Non-text portions of this message have been removed]
> > >
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
>
We are looking at offering Gift Certificates through our website. The gift certificate will be purchased as an order, and then when the gift cert is used, it think should be treated as a payment. We are not quite sure how to approach it. Is anyone else using gift certificates? If so, what process are you using to redeem them within Epicor?

--Matt
--- In vantage@yahoogroups.com, "mattcald_73" <matt@...> wrote:
>
> We are looking at offering Gift Certificates through our website. The gift certificate will be purchased as an order, and then when the gift cert is used, it think should be treated as a payment. We are not quite sure how to approach it. Is anyone else using gift certificates? If so, what process are you using to redeem them within Epicor?
>
> --Matt
>

An option to look at.....you could use serial numbers and some custom coding to ensure its not used again once redeemed, ie user define fields in the serial number file. The serial number file is keyed by part and serial number so if you have only one type of gift certificate (ie part) then this will prevent reuse of the same serial number.
Well from the Financial side of things you really don't want to do it that
way. From a costing / profit etc side is kinda nightmareish

If you sell the certificate as a SO, then you are selling a "Part" at 100%
Profit (which is technically great) since there are no costs associated in
the system with said certificate.
At that point, say you sell a certificate for $100 your system registers
that you made 100$

Now when the customer comes back and orders 100 worth of parts, and they
give you the certificate and you enter it into your system (as cash, check,
or other payment form) the sytem will expect another 100 dollars to
eventualy clear but that has already happened.
That's 200 dollars total out of a 100 dollar certificate.

The best way you can do this, is to take the money for the value of the
certificate and apply it to a customer's account as credit. That way your
system will recognize that money as not as an asset but more a liability
until the order is sold and you pay off the amount with the value from the
credit on the account.

Sorry that may not be 100% correct, I should have preceded this with I am
not an accounting guy, but I know enough to know that it can cause a
problem if not done correctly.
If you want to let Customer X buy the certificate and Customer Y use it,
you can simply enter the sale of the certificate in a Custom UD screen,
which will print out a certificate with a custom BAQ Report and a system
GUID to uniquely identify this certificate.
You take the 100 dollars and don't count it towards profits just yet,
simply put it aside? maybe in a holding account? When Customer Y comes back
with the certificate to make a purchase, you take the certificate and the
money out of the "holding" account , into your regular AR. Granted I am not
too sure how this "holding" account thing would work in terms of finance
within Epicor.

*Jose C Gomez*
*Software Engineer*
*
*
*checkout my new blog <http://www.usdoingstuff.com> *
*
*T: 904.469.1524 mobile
E: jose@...
http://www.josecgomez.com
<http://www.linkedin.com/in/josecgomez> <http://www.facebook.com/josegomez>
<http://www.google.com/profiles/jose.gomez> <http://www.twitter.com/joc85>
<http://www.josecgomez.com/professional-resume/>
<http://www.josecgomez.com/feed/>
<http://www.usdoingstuff.com>

*Quis custodiet ipsos custodes?*



On Wed, May 30, 2012 at 9:14 PM, Paul Morgan <paul.morgan@...> wrote:

> **
>
>
>
>
> --- In vantage@yahoogroups.com, "mattcald_73" <matt@...> wrote:
> >
> > We are looking at offering Gift Certificates through our website. The
> gift certificate will be purchased as an order, and then when the gift cert
> is used, it think should be treated as a payment. We are not quite sure how
> to approach it. Is anyone else using gift certificates? If so, what process
> are you using to redeem them within Epicor?
> >
> > --Matt
> >
>
> An option to look at.....you could use serial numbers and some custom
> coding to ensure its not used again once redeemed, ie user define fields in
> the serial number file. The serial number file is keyed by part and serial
> number so if you have only one type of gift certificate (ie part) then this
> will prevent reuse of the same serial number.
>
>
>


[Non-text portions of this message have been removed]
Jose,

Thanks for the reply!

It is that 'holding' account that we are struggling with!

For the sale of the certificate, we are going to create a non-quantity bearing part and have the GL code go to a liability. That way when it is sold, the liability is recorded. However, we do not know how to 'automatically' match and reduce that liability when the gift certificate is redeemed. (Our website is going to track the serial numbers associated with the gift certificates and when they are redeemed, so we are just trying to figure out how to handle the tech side in E9.) We thought about creating a credit memo at the point of sale of the gift certificate, but it will cause a misrepresentation of the true AR balance.


--- In vantage@yahoogroups.com, Jose Gomez <jose@...> wrote:
>
> Well from the Financial side of things you really don't want to do it that
> way. From a costing / profit etc side is kinda nightmareish
>
> If you sell the certificate as a SO, then you are selling a "Part" at 100%
> Profit (which is technically great) since there are no costs associated in
> the system with said certificate.
> At that point, say you sell a certificate for $100 your system registers
> that you made 100$
>
> Now when the customer comes back and orders 100 worth of parts, and they
> give you the certificate and you enter it into your system (as cash, check,
> or other payment form) the sytem will expect another 100 dollars to
> eventualy clear but that has already happened.
> That's 200 dollars total out of a 100 dollar certificate.
>
> The best way you can do this, is to take the money for the value of the
> certificate and apply it to a customer's account as credit. That way your
> system will recognize that money as not as an asset but more a liability
> until the order is sold and you pay off the amount with the value from the
> credit on the account.
>
> Sorry that may not be 100% correct, I should have preceded this with I am
> not an accounting guy, but I know enough to know that it can cause a
> problem if not done correctly.
> If you want to let Customer X buy the certificate and Customer Y use it,
> you can simply enter the sale of the certificate in a Custom UD screen,
> which will print out a certificate with a custom BAQ Report and a system
> GUID to uniquely identify this certificate.
> You take the 100 dollars and don't count it towards profits just yet,
> simply put it aside? maybe in a holding account? When Customer Y comes back
> with the certificate to make a purchase, you take the certificate and the
> money out of the "holding" account , into your regular AR. Granted I am not
> too sure how this "holding" account thing would work in terms of finance
> within Epicor.
>
> *Jose C Gomez*
> *Software Engineer*
> *
> *
> *checkout my new blog <http://www.usdoingstuff.com> *
> *
> *T: 904.469.1524 mobile
> E: jose@...
> http://www.josecgomez.com
> <http://www.linkedin.com/in/josecgomez> <http://www.facebook.com/josegomez>
> <http://www.google.com/profiles/jose.gomez> <http://www.twitter.com/joc85>
> <http://www.josecgomez.com/professional-resume/>
> <http://www.josecgomez.com/feed/>
> <http://www.usdoingstuff.com>
>
> *Quis custodiet ipsos custodes?*
>
>
>
> On Wed, May 30, 2012 at 9:14 PM, Paul Morgan <paul.morgan@...> wrote:
>
> > **
> >
> >
> >
> >
> > --- In vantage@yahoogroups.com, "mattcald_73" <matt@> wrote:
> > >
> > > We are looking at offering Gift Certificates through our website. The
> > gift certificate will be purchased as an order, and then when the gift cert
> > is used, it think should be treated as a payment. We are not quite sure how
> > to approach it. Is anyone else using gift certificates? If so, what process
> > are you using to redeem them within Epicor?
> > >
> > > --Matt
> > >
> >
> > An option to look at.....you could use serial numbers and some custom
> > coding to ensure its not used again once redeemed, ie user define fields in
> > the serial number file. The serial number file is keyed by part and serial
> > number so if you have only one type of gift certificate (ie part) then this
> > will prevent reuse of the same serial number.
> >
> >
> >
>
>
> [Non-text portions of this message have been removed]
>
How about creating a "bank" account that points to the liability account?

When you give out the gift cert you make a bank entry that will record the "credit" side of the transaction

When the gift cert is redeemed then you can "deposit" it like any other customer payment which will record the "debit" side of the transaction

At the end of each month you can reconcile the account just like a bank account

Regards,
Linda

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of mattcald_73
Sent: May-31-12 9:35 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Gift Certificates



Jose,

Thanks for the reply!

It is that 'holding' account that we are struggling with!

For the sale of the certificate, we are going to create a non-quantity bearing part and have the GL code go to a liability. That way when it is sold, the liability is recorded. However, we do not know how to 'automatically' match and reduce that liability when the gift certificate is redeemed. (Our website is going to track the serial numbers associated with the gift certificates and when they are redeemed, so we are just trying to figure out how to handle the tech side in E9.) We thought about creating a credit memo at the point of sale of the gift certificate, but it will cause a misrepresentation of the true AR balance.

--- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, Jose Gomez <jose@...> wrote:
>
> Well from the Financial side of things you really don't want to do it that
> way. From a costing / profit etc side is kinda nightmareish
>
> If you sell the certificate as a SO, then you are selling a "Part" at 100%
> Profit (which is technically great) since there are no costs associated in
> the system with said certificate.
> At that point, say you sell a certificate for $100 your system registers
> that you made 100$
>
> Now when the customer comes back and orders 100 worth of parts, and they
> give you the certificate and you enter it into your system (as cash, check,
> or other payment form) the sytem will expect another 100 dollars to
> eventualy clear but that has already happened.
> That's 200 dollars total out of a 100 dollar certificate.
>
> The best way you can do this, is to take the money for the value of the
> certificate and apply it to a customer's account as credit. That way your
> system will recognize that money as not as an asset but more a liability
> until the order is sold and you pay off the amount with the value from the
> credit on the account.
>
> Sorry that may not be 100% correct, I should have preceded this with I am
> not an accounting guy, but I know enough to know that it can cause a
> problem if not done correctly.
> If you want to let Customer X buy the certificate and Customer Y use it,
> you can simply enter the sale of the certificate in a Custom UD screen,
> which will print out a certificate with a custom BAQ Report and a system
> GUID to uniquely identify this certificate.
> You take the 100 dollars and don't count it towards profits just yet,
> simply put it aside? maybe in a holding account? When Customer Y comes back
> with the certificate to make a purchase, you take the certificate and the
> money out of the "holding" account , into your regular AR. Granted I am not
> too sure how this "holding" account thing would work in terms of finance
> within Epicor.
>
> *Jose C Gomez*
> *Software Engineer*
> *
> *
> *checkout my new blog <http://www.usdoingstuff.com> *
> *
> *T: 904.469.1524 mobile
> E: jose@...
> http://www.josecgomez.com
> <http://www.linkedin.com/in/josecgomez> <http://www.facebook.com/josegomez>
> <http://www.google.com/profiles/jose.gomez> <http://www.twitter.com/joc85>
> <http://www.josecgomez.com/professional-resume/>
> <http://www.josecgomez.com/feed/>
> <http://www.usdoingstuff.com>
>
> *Quis custodiet ipsos custodes?*
>
>
>
> On Wed, May 30, 2012 at 9:14 PM, Paul Morgan <paul.morgan@...> wrote:
>
> > **
> >
> >
> >
> >
> > --- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, "mattcald_73" <matt@> wrote:
> > >
> > > We are looking at offering Gift Certificates through our website. The
> > gift certificate will be purchased as an order, and then when the gift cert
> > is used, it think should be treated as a payment. We are not quite sure how
> > to approach it. Is anyone else using gift certificates? If so, what process
> > are you using to redeem them within Epicor?
> > >
> > > --Matt
> > >
> >
> > An option to look at.....you could use serial numbers and some custom
> > coding to ensure its not used again once redeemed, ie user define fields in
> > the serial number file. The serial number file is keyed by part and serial
> > number so if you have only one type of gift certificate (ie part) then this
> > will prevent reuse of the same serial number.
> >
> >
> >
>
>
> [Non-text portions of this message have been removed]
>



[Non-text portions of this message have been removed]
Very interesting, Linda. We will have to think on that one. :)

--Matt

--- In vantage@yahoogroups.com, Linda Lowney <llowney@...> wrote:
>
> How about creating a "bank" account that points to the liability account?
>
> When you give out the gift cert you make a bank entry that will record the "credit" side of the transaction
>
> When the gift cert is redeemed then you can "deposit" it like any other customer payment which will record the "debit" side of the transaction
>
> At the end of each month you can reconcile the account just like a bank account
>
> Regards,
> Linda
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of mattcald_73
> Sent: May-31-12 9:35 AM
> To: vantage@yahoogroups.com
> Subject: [Vantage] Re: Gift Certificates
>
>
>
> Jose,
>
> Thanks for the reply!
>
> It is that 'holding' account that we are struggling with!
>
> For the sale of the certificate, we are going to create a non-quantity bearing part and have the GL code go to a liability. That way when it is sold, the liability is recorded. However, we do not know how to 'automatically' match and reduce that liability when the gift certificate is redeemed. (Our website is going to track the serial numbers associated with the gift certificates and when they are redeemed, so we are just trying to figure out how to handle the tech side in E9.) We thought about creating a credit memo at the point of sale of the gift certificate, but it will cause a misrepresentation of the true AR balance.
>
> --- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, Jose Gomez <jose@> wrote:
> >
> > Well from the Financial side of things you really don't want to do it that
> > way. From a costing / profit etc side is kinda nightmareish
> >
> > If you sell the certificate as a SO, then you are selling a "Part" at 100%
> > Profit (which is technically great) since there are no costs associated in
> > the system with said certificate.
> > At that point, say you sell a certificate for $100 your system registers
> > that you made 100$
> >
> > Now when the customer comes back and orders 100 worth of parts, and they
> > give you the certificate and you enter it into your system (as cash, check,
> > or other payment form) the sytem will expect another 100 dollars to
> > eventualy clear but that has already happened.
> > That's 200 dollars total out of a 100 dollar certificate.
> >
> > The best way you can do this, is to take the money for the value of the
> > certificate and apply it to a customer's account as credit. That way your
> > system will recognize that money as not as an asset but more a liability
> > until the order is sold and you pay off the amount with the value from the
> > credit on the account.
> >
> > Sorry that may not be 100% correct, I should have preceded this with I am
> > not an accounting guy, but I know enough to know that it can cause a
> > problem if not done correctly.
> > If you want to let Customer X buy the certificate and Customer Y use it,
> > you can simply enter the sale of the certificate in a Custom UD screen,
> > which will print out a certificate with a custom BAQ Report and a system
> > GUID to uniquely identify this certificate.
> > You take the 100 dollars and don't count it towards profits just yet,
> > simply put it aside? maybe in a holding account? When Customer Y comes back
> > with the certificate to make a purchase, you take the certificate and the
> > money out of the "holding" account , into your regular AR. Granted I am not
> > too sure how this "holding" account thing would work in terms of finance
> > within Epicor.
> >
> > *Jose C Gomez*
> > *Software Engineer*
> > *
> > *
> > *checkout my new blog <http://www.usdoingstuff.com> *
> > *
> > *T: 904.469.1524 mobile
> > E: jose@
> > http://www.josecgomez.com
> > <http://www.linkedin.com/in/josecgomez> <http://www.facebook.com/josegomez>
> > <http://www.google.com/profiles/jose.gomez> <http://www.twitter.com/joc85>
> > <http://www.josecgomez.com/professional-resume/>
> > <http://www.josecgomez.com/feed/>
> > <http://www.usdoingstuff.com>
> >
> > *Quis custodiet ipsos custodes?*
> >
> >
> >
> > On Wed, May 30, 2012 at 9:14 PM, Paul Morgan <paul.morgan@> wrote:
> >
> > > **
> > >
> > >
> > >
> > >
> > > --- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, "mattcald_73" <matt@> wrote:
> > > >
> > > > We are looking at offering Gift Certificates through our website. The
> > > gift certificate will be purchased as an order, and then when the gift cert
> > > is used, it think should be treated as a payment. We are not quite sure how
> > > to approach it. Is anyone else using gift certificates? If so, what process
> > > are you using to redeem them within Epicor?
> > > >
> > > > --Matt
> > > >
> > >
> > > An option to look at.....you could use serial numbers and some custom
> > > coding to ensure its not used again once redeemed, ie user define fields in
> > > the serial number file. The serial number file is keyed by part and serial
> > > number so if you have only one type of gift certificate (ie part) then this
> > > will prevent reuse of the same serial number.
> > >
> > >
> > >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
>
>
> [Non-text portions of this message have been removed]
>