How to properly handle Gift Card Sales
Modified on: Tue, 4 Aug, 2020 at 1:27 PM
These are some important points regarding BACON in relation to Gift Cards
Gift card sales are NOT actual sales. You get the money, but BACON is not designed to be your primary accounting tool. This is more advanced accounting and is technically not even your money, you are just holding it until they decide to use it.
Food, beverage, and labor cost, etc., are calculated not in how much money you got for gift card sales, we are interested in how much product you used. For example, you sell $10,000 in gift cards in December. If we counted that as "sales" your food cost would be low... very low. But then in February when people start using gift cards to buy food, you would not have sales to offset the food you used, so your food cost would high. ARTIFICIALLY.
Instead, your POS counts a gift card redemption toward what it was used for. As an example, if somebody used a gift card to buy $80 in food and $20 in beverage, then your food sales are increased by $80 and beverage by $20, even though you will not actually receive any cash for the sale. And vice versa, when your guest buys a gift card it goes toward your deposits but NOT your sales.
To handle this properly BACON does NOT enter gift card sales anywhere. ONLY enter what your POS system says for Food, Beer, Wine, Liquor, etc. To calculate your food cost properly, we only care about what people ordered vs. what you purchased, NOT how much cash you received for the day.
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