I seem to be going round in circles with my team and wonder if I could get some help on double entry on the subject of Gift Voucher.
Under EU regulation from 2019 we established that our voucher qualifies as single-purpose vouchers (goods, single Rate of VAT, to be used in one redemption online)
As a result the VAT is should be due when the voucher is issued. (and not when the sales is recognised)
£120 gift voucher as example
Journal 1: Process the sales Invoice
CR Sales 100
CR VAT 20
DT Debtor Ctrl Acct 120
Journal 2: Process the Payment of the gift
CR Debtor Ctrl Acct 120
DT Bank 120
Journal 3: Enter the liability Non claimed voucher to the Balance sheet
DT Sales (P&L) 100
CR Gift card Liability (B/S) 100
Journal 4: Voucher gets redeemed (3 month later for example), a sale order is created but not invoiced.
CR Sales (P&L) 100
DT Gift card Liability (B/S) 100
Journal 5: Process the cogs of the order
DT COGS P&L: 50
CT STOCK (B/S): 50
Does that make sense? or are we going the wrong way about this.