In some instances, properties related through common ownership will accept gift certificates issued by any of their related, or "sister", properties as payment on a reservation or bill. This article will walk you through the recommended setup for each related property and how to redeem a gift certificate at a sister property.
Setup
We recommend the following setup for each related property:
A. Add new accounts to the Chart of Accounts.
Click Settings.
Click Chart of Accounts under the "Business Configuration" heading.
Click New.
Put "(Sister Property Name) Gift Certificate" into the Name field.
Set the Type to "Asset".
Click Save.
Repeat 3-6 for each additional related property.
Click New, again.
Put "(Property Name) Gift Certificate Offset" into the Name field.
Set the Type to "Revenue".
Click Save.
B. Add new payment types to Payment Types.
Click Settings.
Click on Payment Types under the Business Configuration heading.
Click New.
Put "(Sister Property Name) Gift Certificate" into the Name field.
Select "(Sister Property Name) Gift Certificate" as the Asset Account.
Click Save.
Repeat 3-6 for each additional related property.
C. Add new items to Items.
Click Settings.
Click Items under the Business Configuration heading.
Click New.
Put "(Property Name) Gift Certificate Offset" into the Name field.
Fill in the "Description" field if desired. This is optional.
Put 0 (zero) into the "Price" field.
Leave all of the Taxes unchecked.
Select an option from the Item Category (if applicable).
Select "(Property Name) Gift Certificate Offset" from the "Revenue Account" pull-down.
Leave "Upsell to Customers who are making a reservation online" unchecked.
Click Save.
You are now ready to accept gift certificates among your related properties. If you add another property, you can update the settings by following the steps above..
Accept a Gift Certificate Issued by a Related Property
Follow these steps to accept a related property gift certificate as payment on a reservation or bill:
Inform the related property of the accepted gift certificate and confirm the remaining balance on the gift certificate.
On the reservation, click the "Add" ("$") button in the Payments section.
Enter the amount that is being paid.
Select "(Sister Property Name) Gift Certificate" as the Payment Type.
Optional, but recommended: In the Reference, indicate the gift certificate number.
Click "Take Payment".
Redeem a Gift Certificate Accepted by a Related Property
Follow these steps to redeem a gift certificate you sold that was accepted by a related property:
Click "New Bill..." under the House Logo in the upper left corner.
Set the Customer to be the sister property.
If you don't have a customer with this name, create one.
Click "Add" ("+") under Purchases
Select the "Item Category" (if applicable).
Select "(Property Name) Gift Certificate Offset" from the "Item" pull-down.
Leave the "Quantity" at 1 (one).
Set the "Price" field to the amount accepted for payment by the related property.
Click "Add"
Click "Add" ("$") under the Payments.
Set the "Amount" field to the amount accepted for payment by the related property.
Change the "Payment Type" pull-down to Gift Certificate.
Put the Gift Certificate number accepted at the related property into the "Gift Certificate Number" field.
Click the "Check balance" button.
Once the balance has been confirmed, click "Take Payment".
Accounting Implications
The above procedure facilitates the proper accounting treatment for gift certificates redeemed at related properties. When preparing the consolidated financial report (or annual tax return) for all related properties, the "(Sister Property Name) Gift Certificate" account will be offset, or eliminated, against the "(Property Name) Gift Certificate Offset" account.
Example
Property A accepts a gift certificate issued by Property B. The certificate covers the reservation charges for the guest's stay exactly, at $500. Here are the accounting journal entries on each property and the consolidated financial results:
Any questions? Please reach out to our Support Team at support@thinkreservations.com.